International Business Corporations (IBCs) By William Cate Published October 1999 [http://home.earthlink.net/~beowulfinvestments [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]Most American Multinational Corporations operate outside States as an IBC. If you call their export division, you'll find that you are talking to someone in Zurich or Nassau. The reason is that using an IBC to sell their products or services overseas saves company on taxes.
Had 19th Century founders of these icons of American Industry foreseen 20th Century Western tax revolution, Switzerland would have been home of American industry. Since WWII, Swiss Tax legislation makes Switzerland a poor choice for an IBC. But, if you follow my public company strategy, you need only worry about next Decade, not next hundred years.
Professional money trades through IBCs. New hot shot stock brokers see that money appears to be located in Geneva, St. Vincent, Douglas, etc. They save their money for a trip to visit IBC investors in Europe, H. K, or Caribbean. They may have a great vacation. They never find investors. To find those investors, they should have gone to Houston, Miami, New York, London, Toronto and other cities where stock market professionals live.
Public companies with a global market for their goods or services are worth taking public. It's wiser to incorporate global company in a Caribbean tax haven than in Delaware, Nevada, or Ontario. Your tax haven incorporation won't reduce your corporate taxes on income your company earns in Canada, United States or Germany. It will reduce your international tax obligations. If you doubt me, review audits of any American multinational corporation trading on New York Stock Exchange. You can find their audited financial statements at U. S. Securities and Exchange Website.
Owning insider stock of a public company through an IBC makes sense, if you aren't part of "Pump & Dump" crowd. If your tax haven IBC holds stock for several years, tax consequences are no different from your holding your stock without selling it. However, at point of eventual sale, if your plan is to live out your life in a tropical paradise, you can legally save on your taxes. This statement is truer for Canadians than Americans, but an IBC will save you tax dollars.