Internet is the biggest tax haven

internet paraiso fiscalInternet is by nature open, with low entrance barriers and therefore extremely difficult to regulate. Internet does not allow, or at least poorly tolerates, bureaucratic treatment. Today there is a total of millions of Internet users who have become yet another offshore territory and therefore, many state that Inernet is the biggest Tax Haven. This is because through its network, capital is moved and business, money and stock transactions are made in real time from one hemisphere to another. In developed countries Internet usage has grown annually by about 50% since the late 90s.
Internet is the most notorious example of the globalization of finance. It is endowed with great freedom in all senses and has revolutionized traditional aspects of the offshore business, such as the transfer of funds,  online banking, e-commerce and incorporation of companies. With the use of ICTs, physical proximity to the offshore center has lost relevance. At present, there are hundreds of banks on Internet where, from your own PC and via e-mail, it is possible to open accounts and make all types of bank transactionsincluding applying for a credit card.
Internet as the biggist Tax Haven is not a mere slogan: with regard to taxation, it is difficult to know the physical place where a commercial company is operating from on Internet. Therefore, it is difficult to establish technically where it must pay taxes. It is also difficult to determine the jurisdiction that has to supervise the Internet or establish or collect taxes. This last aspect, i.e., how to tax online transactions, is one of the big problems of the tax authorities in developed countries. The growth of e-commerce and tax savings  on transactions it generates have led some centers to promote the establishment under advantageous legal and tax conditions of commercial companies based on the fact that Internet is the world’s biggest Tax Haven.
Parallel to the distribution and sale of products in the regular commercial circuits, large companies offer lines of service online, and some of these services are created in offshore jurisdictions with noticeable tax savings. These companies sell part of their products online, but using companies in Tax Havens that pay royalties to the parent company located in a country of high jurisdiction. It is a complex procedure, but completely legal to save taxes provided it is commercially justified and all doubts about transactions with related companies are dispelled.
Internet makes it easy for many companies to move their center of non-customer related activities, the so-called back office to other jurisdictions. It also allows data storage for security purposes in places far away from companies’ main office or offices.

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