Tag: Offshore Accounting
Offshore accounting involves the securing of assets in financial institutions in foreign countries. This practice, which may be limited by the laws of the customer’s home nation, can be used to avoid certain unfavorable circumstances should the funds be kept in a financial institution in the home nation. This can include the avoidance of tax obligations as well as making it more difficult for these assets to be seized by a person or entity in the home nation. For those who work internationally, the ability to save and use funds in a foreign currency for international dealings can be a benefit. This can provide a simpler way to access funds in the needed currency without have to account for rapidly changing exchange rates.
The term “offshore” is used to describe foreign banks, corporations, investments and deposits. A company may legitimately move offshore for the purpose of tax avoidance or to enjoy relaxed regulations. Offshore financial institutions can also be used for illicit purposes such as money laundering and tax evasion.
