General Knowledge About Offshore Companies

Aren`t all offshore companies used by criminals?

Well, aren`t domestic companies used by them, too? An offshore company is just a legal entity, a tool, which, by itself, is neutral. Offshore tax havens have for decades been the target of blackmail campaigns by the powerful high-tax countries. Many high-taxing governments would like their citizens to believe that offshore companies are only used by terrorists and crooks. It`s a rather unjustified accusation. While there is always a rotten apple in any basket (especially, if the basket is large enough), 99% of all business transacted through offshore companies is completely legitimate. In fact, due to the implied need to maintain their reputations clean in order to withstand formal international pressure, most leading tax havens nowadays have proper systems to detect and prevent crime and money-laundering. In terms of financial services regulation, some of the best offshore jurisdictions actually have more advanced legal infrastructure than many "first world" countries. The big, powerful nations, who are often too eager to criticize the offshore financial centres, are in most respects no better themselves - but, then again, it is an old story.