I enjoyed this article from the Economist on international tax havens.
Most mid-sized Canadian and US businesses, competing internationally, struggle with creating and maintaining the right corporate structure. Increasingly, existing structures are caught in the global pressure on tax havens, requiring management to spend more time and money ensuring compliance and reducing risk.
Our experience is that corporate structures purely designed for tax minimization often reduce shareholder value. The costs to maintain structures are increasing, the ongoing changes required to ensure compliance inevitably disrupt operations, and the structures are often not financeable or transferable to a third party purchaser.
Think long and hard before entering into an international tax structure. If you already have one, consider the merits of simplifying.
The article is HERE.
Posted by Scott Sinclair, Range Corporate Advisors
Range Corporate Advisors provides multidisciplinary solutions to medium and small business requiring transitional, transactional or management assistance.