It's important to keep in mind, as one navigates the shoals of international tax planning, just what the hazards are. We have tax codes throughout the world to thank for the development of the offshore financial world. Without their assistance, the Cayman Islands would probably be a set of desert islands and no one would ever have heard of Vanuatu. One of the main purposes of this workk is to reduce or eliminate taxes.
Tax planning is the essence of offshore financial operations.
Most of the players of the international money game are overseas because of taxes. They share with all the peoples of the world a desire to pay less taxes. International tax planning is based on the fact that the revenue laws of any state are largely restricted to its domestic economy. The tax authorities have a hard time crossing borders but people and wealth can do so easily. A person can make three basic changes in his tax situation through offshore tax jurisdictions.