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Legal asset protection through an offshore company

One of the main reasons why entrepreneurs use foreign offshore companies is to protect their assets against future unlawful claims by creditors, government agencies or family members. Look at this site for more useful information.

Legal protection of assets

Offshore companies have several key features that predestine them for property protection functions. The features of offshore companies that allow them to be used to protect property include:

  • Easy to use in the Czech legal environment
  • Non-public register of company owners
  • Possibility to use a service nominee
  • Difficult Accessibility

Property ownership

Legal protection of property is most often used for property ownership. It uses the model where the real estate owns an offshore company and the actual owner holds the shares of that company. This results in a transfer of ownership to an offshore company, but the control of the property remains in the hands of the beneficial owner.

There is an offshore company in the land register. It serves in addition to legal protection as an anonymizing element. If it is a bearer company (for example, a Marshall Islands company ), the level of ownership anonymity is indeed very high. The actual owner does not own a real estate as such but holds offshore shares of a company that is kept as a formal owner in the land register.

Movable property

Just as for real estate, offshore companies can be used to protect movable things. Each type of property has its own specifics and the transfer of ownership is bureaucratic in various ways. In general, however, it can be said that offshore companies can be used for legal protection:

  • Passenger cars
  • Deliveries and trucks
  • Machinery and equipment
  • Computers and laptops
  • Electronics

Illegal execution

In the Czech Republic, legal protection of property is also desirable in relation to an unregulated bailiff environment that is often abused by bailiffs. Often when it happens that the property is illegally confiscated in the course of the enforcement proceedings.

Divorces

The use of property protection is appropriate, for example, in the case of a divorce where one of the spouses can separate their own acquired property from the common one and thus retain it in their ownership (or owned by a foreign company).

Trusts

It is very popular to deposit property into a trust through which third-party legal protection can be secured. At the same time, this procedure allows the situation to be avoided so that even in the event of unfavorable developments the assets are not divided.

How does trust work?

Using trusts transfers ownership rights from the original owner to a trusteeship administrator who manages the property for the benefit of a third party as defined by the original owner in the Trust Agreement.

Is it safe?

By transferring the property to the trusteeship manager, the original owner loses all rights and can only intervene in a very limited way in events in trust. Notwithstanding this, there is no reason for concern, as the trusteeship administrator must fully comply with the Trust Agreement, and takes full responsibility for the management of the property, which is enforceable by law.

In the Czech Republic, the trust can also be used as a form of property ownership anonymity, since trust administrators will be listed as the owner of the real estate in all Czech publicly available registers.

Tax evasion – Offshore Leaks: At least 100,000 German people and companies hide their assets in tax havens

The expert on international tax law Hergen Kassuba comments on the tax haven scandal and considers prejudices misplaced: What is legal is legitimate!

If taxes are evaded by offshore constructions, it is an offense. There is no gray area between these two variants. Moral issues are unknown to German tax law, explains Kassuba.

Your goal is to avoid taxes. Therefore, more than 100,000 Germans are expected to have their assets moved abroad. Since April 4, 2013, the news magazine Focus, the Southgerman newspaper and NDR have been reporting exclusively on tax avoidance strategies through the use of so-called tax havens and complex corporate structures such as trusts, foundations and the like.

Tax evasion mittes offshore companies

The data revealed that all major credit institutions and many German companies (such as BMW, VW and others), but also well-known personalities (such as the late Playboy Hunter Bachs) a network of trusts and letterbox companies in foreign Use tax-saving paradises to avoid taxes.

The media has used leaks to expose a huge network of tax avoidance. Further revelations about a large tax haven machine are announced. Apparently, the existing information is continuously evaluated.

Revelations give the impression of illegality

Experienced international tax law expert Hergen Kassuba explains: “The trusts and other letterbox companies in the tax havens are either created to conceal and disguise assets, or to avoid taxes, such as inheritance tax.”

The data revealed reignite a “justice dispute”: while ordinary citizens are required to pay their taxes, the super-rich and financially strong corporations can use the offshore tax structures of simple front companies to set and regulate their own taxes.

Kassuba: Legal is legitimate too

Hergen Kassuba warns against prejudices. He points out that the cases he has revealed in his examination are typical legal tax constructions. “There is only black and white here. Either it is `black money and thus a criminal tax evasion. Or they are legal tax trusts, which are also legitimate. A gray area, that is, a moral dubiousness, does not exist in tax law, “said the expert on international tax law.

To offshore leaks

The research project “Offshore Leaks” involves numerous journalists and newspapers as well as radio and television stations from 46 countries. The media has enormous amounts of data an anonymous source should have leaked to them. It deals with various individual information on companies and bank accounts in tax havens such as British Virgin Islands, Cayman Islands, Mauritius, Singapore, Samoa, Seychelles, Hong Kong and Malaysia.

The now published German cases include self-employed as a tax consultant from Stuttgart or a German winemaker resident Mallorca, a technology manufacturer from Zenpen, a furniture company from North Rhine-Westphalia, wealthy Russians residing in Hamburg or even Pleitiers as the former owner of a hospital chain in southern Germany.