This is a serious mistake. If the only reason one has for going offshore is tax avoidance I recommend strongly that one seek the assistance of a qualified tax attorney and explore the myriad of opportunities available for onshore tax deferral. Revenue Canada and the IRS both continue to take the position that when the primary reason an offshore option is invoked is tax deferral, this motivation alone, once articulated, is and of itself sufficient grounds to deny any tax benefit. It is important therefore that anyone considering an offshore business opportunity do so for reasons other than tax issues alone. There are a number of very important reasons for one to consider expanding their business activities offshore, in addition to the truly significant benefits of privacy and asset protection, and the sometimes benefit of tax shelter.
Privacy is often integral to risk planning.
Offshore clients typically seek confidentiality in their affairs to protect business strategies. Offshore jurisdictions are typically less business invasive allowing for aggressive and unrestrained enterprise with lower overhead. By titling property into an offshore company, you can transfer real estate, cars, boats, and other property more easily by selling or transferring stock instead of re-titling the property when sold. An offshore company may be used to segregate high-risk investments from other more secure holdings. Offshore legal structures are widely recognized as the premier resource for segregating assets and achieving privacy from potential litigation.