offshore

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offshore

a term used to describe vehicles or institutions based in, or regulated by, the laws of a jurisdiction that either has no tax or low tax for non-locals and that specializes in providing services of a financial or legal nature to persons and businesses ‘onshore’, that is to say, in high-tax jurisdictions. While many such jurisdictions are based on islands, which has brought about the terminology in a literal sense, the littoral location of the investment is irrelevant.
References in periodicals archive ?
Gary Ashford, a tax investigations director at Grant Thornton, said: "The Treasury has been progressively tightening the net on offshore accounts for some time and it is now getting to a point that those with money held offshore, whether acting rightly or wrongly, are likely to feel some heat from HMRC in the near future.
It follows last year's Offshore Disclosure Facility, which aimed to get people to pay tax on income in offshore accounts.
For offshore account holders and their advisers, it is now a question of when, not if, they will be contacted by HMRC.
More than 12 world leaders have been linked to offshore accounts handled by Mossack Fonseca, including Pakistani Prime Minister Nawaz Sharif, former Iraqi Vice President Ayad Allawi, Ukrainian President Petro Poroshenko, Alaa Mubarak, the son of former Egyptian President Hosni Mubarak, and Icelandic Prime Minister Sigmundur DavAaAaAeA [et Gunnlaugsson.
The report declared that the bank had about 2,500 to 5,000 American clients with undeclared offshore accounts worth about CHF3bn.
HMRC announced in April this year that it was giving investors until June 22 to reveal their secret offshore accounts and avoid paying penalties of up to 100 per cent of the tax due, as well as a possible criminal conviction.
Many individuals and businesses that use offshore accounts have done nothing wrong and have nothing to worry about.
Owners may hold an offshore account which receives rents or pays utility bills, as well as accounts held as pure investments.
The prosecutors claim that UBS illegally helped US clients to hide as much as USD20bn in secret offshore accounts, thereby evading USD300m a year in US taxes from 2000 to 2007.
HM Revenue and Customs is to ask small private banks and other financial institutions that cater for wealthy clients to agree to hand over details of their customers' offshore accounts.
5bn in settlements from customers of Barclays Bank, the first high street bank to be targeted since HMRC gained new powers to access details of UK residents with offshore accounts.
MIDLANDERS with second homes abroad could face a "summer of worry" following a landmark ruling over Barclays Bank offshore accounts.