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HTML <html> <head> <title>Find out about the tax benefits of offshore funds</title> </head> <body> <h1>Find out about the tax benefits of offshore funds</h1> <div class="info">Author: <a href="author_1_96048.html">Mark Plummer</a></div><div class="body">An offshore fund is a collective investment fund domiciled in an Offshore Financial Center. These funds have been in existence since the 1960's, and so named because they were established originally in the island tax havens of the Caribbean and the English Channel. The term 'Offshore' has since come to mean any jurisdiction, wherever geographically located, which is advantageously different from one's own domestic financial environment.<br /> <br /> Advantages<br /> <br /> The advantages take a number of forms: a tax free, or 'tax-lite' regime, which reduces the costs on the fund making increased performance achievable, and a less restrictive regulatory environment. Assets can be held in confidence, and the timing of tax payments, and mitigation of the rate at which they are levied can be managed by investing offshore.<br /> <br /> Offshore funds offer eligible investors significant tax benefits compared to many high tax jurisdictions such as the United States and the European Union. However, where funds are repatriated to high tax jurisdictions, they are usually taxed at normal rates as foreign arising income.<br /> <br /> Many of these tax-haven locations are considered investor friendly and are internationally regarded as financially secure.<br /> <br /> 1. Confidentiality<br /> While conceding the need for greater degrees of co-operation with onshore authorities, the offshore centers' tradition of protecting investors' privacy still persists. If they are implementing measures necessary to maintain a reputation for profit, on money laundering for example, and if they are co-operative when there is evidence of criminal activity, they will nevertheless actively resist any attempts at 'fishing expeditions’ on the part of onshore tax authorities.<br /> <br /> 2. Returns and Volatility<br /> In addition to operating in a benign tax environment, offshore funds have the opportunity to further increase their returns through exposure to a wider range of asset classes. It is an accepted principle that diversity can better balance an investor's portfolio and reduces its volatility. By spreading investment around different financial centers, not only are diversity increased, but exposure to different market conditions and investment styles are brought into the mix as well. <br /> <br /> Although most offshore jurisdictions permit funds to obtain licenses to operate as public funds, the onerous regulatory requirements associated with such licenses usually means that only a small minority of offshore funds is available for subscription by the general public. These funds are subject to formal constitutions, and operated and monitored in compliance with the rules of the local regulatory regime.<br /> <br /> While shares in many offshore funds are available by direct application to the managers, the decision to invest in them is likely to be made within the context of broader financial planning. This, plus the desirability of expert guidance, makes an approach through an appropriate financial advisor highly to be recommended.<br /> <br /> For more details please visit www.wealthcapfund.com<br /> <br /> </div> <div class="source">Article Source: <a href="http://www.articlealley.com/article_159661_19.html">http://www.articlealley.com/article_159661_19.html</a></div> <div class="author"> <div class="authorBio">Asia based independent Offshore Investment advisor.Has been involved in the financial services and financial planning business since leaving full time education in 1977.It was his intention to provide an insight in to both the mainstream products offered by the general population of financial advisors out there and also the alternative investment areas that are often overlooked or ignored. Now at present he is an owner of Partners Financial services which represents all clients living outside of Hong Kong and consultant of Simmonds (International) Financial Associates Limited in respect of all clients residing in Hong Kong Holder of Financial Planning Certificate (parts 1,2 & 3) and Taxation and Trusts section of the Advanced Financial Planning Certificate issued by The Chartered Insurance Institute, England. Registered as a Technical Representative by the Hong Kong Confederation of Insurance Brokers </div> <div class="authorUrl"><a href="http://www.wealthcapfund.com" target="_blank">http://www.wealthcapfund.com</a></div></author> </body> </html>
Text Find out about the tax benefits of offshore funds Author: Mark Plummer An offshore fund is a collective investment fund domiciled in an Offshore Financial Center. These funds have been in existence since the 1960's, and so named because they were established originally in the island tax havens of the Caribbean and the English Channel. The term 'Offshore' has since come to mean any jurisdiction, wherever geographically located, which is advantageously different from one's own domestic financial environment. Advantages The advantages take a number of forms: a tax free, or 'tax-lite' regime, which reduces the costs on the fund making increased performance achievable, and a less restrictive regulatory environment. Assets can be held in confidence, and the timing of tax payments, and mitigation of the rate at which they are levied can be managed by investing offshore. Offshore funds offer eligible investors significant tax benefits compared to many high tax jurisdictions such as the United States and the European Union. However, where funds are repatriated to high tax jurisdictions, they are usually taxed at normal rates as foreign arising income. Many of these tax-haven locations are considered investor friendly and are internationally regarded as financially secure. 1. Confidentiality While conceding the need for greater degrees of co-operation with onshore authorities, the offshore centers' tradition of protecting investors' privacy still persists. If they are implementing measures necessary to maintain a reputation for profit, on money laundering for example, and if they are co-operative when there is evidence of criminal activity, they will nevertheless actively resist any attempts at 'fishing expeditions’ on the part of onshore tax authorities. 2. Returns and Volatility In addition to operating in a benign tax environment, offshore funds have the opportunity to further increase their returns through exposure to a wider range of asset classes. It is an accepted principle that diversity can better balance an investor's portfolio and reduces its volatility. By spreading investment around different financial centers, not only are diversity increased, but exposure to different market conditions and investment styles are brought into the mix as well. Although most offshore jurisdictions permit funds to obtain licenses to operate as public funds, the onerous regulatory requirements associated with such licenses usually means that only a small minority of offshore funds is available for subscription by the general public. These funds are subject to formal constitutions, and operated and monitored in compliance with the rules of the local regulatory regime. While shares in many offshore funds are available by direct application to the managers, the decision to invest in them is likely to be made within the context of broader financial planning. This, plus the desirability of expert guidance, makes an approach through an appropriate financial advisor highly to be recommended. For more details please visit www.wealthcapfund.com Article Source: http://www.articlealley.com/article_159661_19.html About the Author: Asia based independent Offshore Investment advisor.Has been involved in the financial services and financial planning business since leaving full time education in 1977.It was his intention to provide an insight in to both the mainstream products offered by the general population of financial advisors out there and also the alternative investment areas that are often overlooked or ignored. Now at present he is an owner of Partners Financial services which represents all clients living outside of Hong Kong and consultant of Simmonds (International) Financial Associates Limited in respect of all clients residing in Hong Kong Holder of Financial Planning Certificate (parts 1,2 & 3) and Taxation and Trusts section of the Advanced Financial Planning Certificate issued by The Chartered Insurance Institute, England. Registered as a Technical Representative by the Hong Kong Confederation of Insurance Brokers http://www.wealthcapfund.com
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