The Tax-Free Tour: Corporate Tax Havens (Enhanced DVD)
The exciting world of offshore finance is the subject of The Tax-Free Tour: Corporate Tax Havens (Enhanced DVD). With an eye on global business processes, the video looks at how firms shelter earnings from international income tax and sales tax via electronic transaction to offshore banks. The film engages common questions such as: are offshore banks safe? Are secure transactions managed by reliable third parties? Are offshore financial reserves insured?
While the Internal Revenue Service (IRS) provides rules to income and sales tax, quite a few major corporations have found a method of controlling the loss of finance to audit. The investigation into offshore financial dealings, also looks at the activities of actual companies like Apple Inc. The video covers the electronic transaction network process used in transfer of sales revenue to offshore banks by way of its wholly owned subsidiaries in the Netherlands and Ireland.
Apple Inc.’s pioneering strategy to save 35% of profits that would otherwise be paid in taxes, uses an electronic transaction network administered by a third party service. When Apple deposits sales, those funds are first transacted to the Netherlands where there is no intellectual property tax. Transactions are then processed to a holding entity in Ireland and relayed to the computer company’s tax have protected bank accounts in the British Virgin Islands.
Financiers discuss the current statutory and ethical practice rules to offshore finance transactions, and offer explanation about why more multinational corporations using offshore financial instruments to manage their funds. (English subtitles, 53 minutes)