Proven Accountants Finance Blog

Businesses Are Moving Offashore And Saving Tax – Legally

Charles Barkley — Wed, 05 May 2010 12:11:20 +0000

Companies are looking for legitimate solutions that enable them to remain profitable by reducing their costs and increasing profitability. Reviewing the way a business is structured can deliver big benefits. Even businesses with moderate taxable profits can reap rewards.

The outcome of such a review may demonstrate that a business can legitimately and significantly reduce its tax burden by re-organising its structure. A corporate re-structure may include the addition of offshore or international business companies, that take advantage of the UK’s Double Taxation Treaties and low rates of tax in treaty partner countries.

In the following case study a UK company (‘UK Co’) that buys goods from China (‘China Co’) and sells to consumers in the UK.

Upon review the owners of UK Co decide to make changes to their corporate structure. They transfer their shares in UK Co and form two new companies:

The new corporate structure took only a few days to establish and was ready for operations by the beginning of the next financial year. The business now operated like this:

Therefore at the end of the first financial year using the new corporate structure, UK Co made a smaller taxable profit but this was offset by increased profits of Cyprus Co. The detail looked like this:

The above example structure cost £2,000 to set up, and £2,500 annually for government fees, accounting/audit and corporate services. YourBooks Ltd in Cyprus offers a wide range of bespoke solutions and special ‘packages’ at cost-effective rates.

Choice of countries and cost of services vary widely and advice from a competent service provider should be sought. In addition to costs there are other important considerations to take into account when planning a new corporate structure.

Author: Charles Barkley

This is my biography.

test123

Charles Barkley — Mon, 15 Mar 2010 18:16:30 +0000

test

Author: Charles Barkley

This is my biography.

SkillSoft Reports Fourth Quarter and Fiscal 2010 Results

Jeff Snyder — Mon, 15 Mar 2010 18:10:38 +0000

SkillSoft Reports Fourth Quarter and Fiscal 2010 Results
NASHUA, N.H., March 11 /PRNewswire-FirstCall/ — SkillSoft PLC (Nasdaq: SKIL), a leading Software as a Service (SaaS) provider of on-demand e-learning and performance support solutions for global enterprises, government, education and small to medium-sized businesses, today announced financial results for its fourth quarter of fiscal 2010 and its fiscal year ended January 31, 2010. Fiscal 2010 …

Author: Jeff Snyder

A litte information about myself. This is my biography.

test

Charles Barkley — Wed, 24 Feb 2010 04:35:27 +0000

Test

Author: Charles Barkley

This is my biography.

Robert J. Samuelson: Euro countries gambling on Greece

Jeff Snyder — Wed, 24 Feb 2010 04:32:54 +0000

Robert J. Samuelson: Euro countries gambling on Greece
WASHINGTON — It would be possible in other circumstances to disregard the ongoing story of Greece and its debts as a tedious tale of financial markets. But there’s much more to it than that. What’s happening in Greece speaks to two larger issues affecting hundreds of millions of people everywhere: the future of the welfare state and the fate of Europe’s single currency — the euro. The meaning …

Author: Jeff Snyder

A litte information about myself. This is my biography.

Panel looking for ways to reduce Pa. government costs

Jeff Snyder — Wed, 24 Feb 2010 03:41:40 +0000

Panel looking for ways to reduce Pa. government costs
HARRISBURG — A new effort to make state government operate less expensively is underway at the Capitol

Author: Jeff Snyder

A litte information about myself. This is my biography.

Donnelly to get plenty of competition

Jeff Snyder — Wed, 24 Feb 2010 02:53:16 +0000

Donnelly to get plenty of competition
LA PORTE — Martin Dolan has filed to run for U.S. representative for Second District.

Author: Jeff Snyder

A litte information about myself. This is my biography.

A sisterhood of mommy patriots’ hosts Congressional candidate Nan Hayworth

Jeff Snyder — Wed, 24 Feb 2010 02:08:16 +0000

A sisterhood of mommy patriots’ hosts Congressional candidate Nan Hayworth
Westchester County ophthalmologist picks up GOP endorsements as field to challenge Rep. John Hall grows

Author: Jeff Snyder

A litte information about myself. This is my biography.

What Taxes Will States Turn To Next?

Jeff Snyder — Wed, 24 Feb 2010 01:07:52 +0000

What Taxes Will States Turn To Next?
They’ve tackled the wealthy, corporations, tobacco and alcohol. Now some strapped states may be forced to confront tax system overhauls.

Author: Jeff Snyder

A litte information about myself. This is my biography.

West Virginians to be Honored for Supporting Civil Rights

Jeff Snyder — Wed, 24 Feb 2010 00:17:23 +0000

West Virginians to be Honored for Supporting Civil Rights
A federal judge and newspaper editor, and a former mayor and beauty contestant will be honored for championing the cause for humans rights in West Virginia.

Author: Jeff Snyder

A litte information about myself. This is my biography.