Banking in a Tax Haven isn't what it used to be!
Contributed by Unitransact
30 June, 2014
It's estimated that taxes in the region of trillions are lost to tax havens every year. Individuals and companies the world over use these jurisdictions to store money, create financial vehicles for investment and even operate businesses.
So why is this? Well historically speaking, companies for example, could easily and cheaply incorporate in a tax haven, open a bank account and conduct the vast majority of their business offshore. To this very day, businesses avoid the steep tax brackets of their home jurisdictions and funnel large amounts of earnings into vehicles such as trusts. Its a sure-fire way for a business owner to reap the full rewards of their labours, even if it could be described as immoral.
But whether or not these jurisdictions want to admit it, times are changing. The Cyprus crisis was the latest in a host of events that has dented and diminished confidence.
Its not just security though! Practically, its now much harder to set up these services than it used to be. Banking in particular can be a tribulation. Ironically, this is only made worse by a complex structure, where beneficial ownership relates to a trust or associated vehicle.
I have had multiple discussions recently with new business owners, who told me their stories. All agree, incorporation was relatively painless but the banking system was slow and full of needless administration. One reminisced of the days when he and his lawyer would walk from incorporating their company to the nearest bank, and it was trading within the week. However, basic business banking services can now take months to secure.
That's what sparked the thought that we could do so much better. Working together with the lawyers that incorporate the businesses, Unitransact could have a Multi-Currency Account set up, which has lower fees and competitive conversion rates, for every newly incorporated company, all within the space of a week. That's not to say we won't verify you or your business but all the information will be within your lawyer's reach so there's no reason that this process should drag on. Whats more, you can sleep soundly, knowing your funds are safe in Australia.
Why not find out for yourself. Contact us and one of our representatives will get back to you and talk you through the benefits. Just contact us at firstname.lastname@example.org.
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