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The explosion of interest in e-business for international trade enables international companies to flourish as tax-free global traders. Offshore companies have an opportunity to become profitable global international traders in goods and services using the Internet to conduct nearly all their business affairs. What is e-business? Tax Free International Trading If you are involved in trading on the internet, or international import and export of goods or services, e-business Inc. in association with Moores Rowland, can maximize your profits and minimize your taxes. The Internet is the ideal way to do trading - especially for international business. Your transactions with your trading partners happen in cyberspace and are thus not subject to goods and services taxes, stamp taxes, value added tax etc. Your central trading company can be anywhere in the world. If your central trading company is an international corporation located in a tax haven - such as Vanuatu in the South Pacific - your company will not be subject to taxes on profits. This gives you an unprecedented commercial edge over competitors. e-Business Incorporated provides you with a unique opportunity to take advantage of this new trading possibility in a secure environment of known trading partners. We work in close association with Moores Rowland - one of the largest international accounting networks in the world. Moores Rowland sells offshore companies - including shelf companies - at very reasonable prices. You can order a company on their web site complete with bank account, registered agent and office, nominee directors and shareholders for US$1995. Some of the shelf companies come with an Internet site and domain name ready to go. e-Business Incorporated will interface with Moores Rowland to integrate your company into a trade-network of offshore companies that want to buy or sell products or services over the Internet anywhere in the world. The Cyberspace Tax FirewallFinancial deals done in cyberspace raise difficult questions for taxation. For example, suppose a resident of Singapore finds a bank on the Internet that allows a potential customer to fill out a form and open an account. The bank offers a number of advantages such as easy access via the Internet, access by other family members anywhere in the world, payments by writing checks, and an ATM debit card that can withdraw cash anywhere in the world. Is the bank doing business in Singapore even if it has no physical office there? Trading companies buy from one party and sell to another unrelated party. An offshore based trading company can enter into various contracts with customers and suppliers, sealing the deal in cyberspace. For example, bonds are purchased in London and sold in Hong Kong by a Vanuatu company acting for an association of financial partners scattered in a dozen countries. Modern manufacturing operations span many political jurisdictions; a computer chip manufacturer in Hong Kong, a subsidiary of a US company, subcontracts the basic chip assembly to a Korean company. It supplies technology to the Korean company that was developed in the US. Quality is controlled by Hong Kong specialists. The Korean company may use equipment provided by the Hong Kong company. Raw materials are provided by the US company. Which country gets to tax how much of the chip manufacturing profits? In this case, the various tax offices will be looking very closely at every stage of the operation to assure there was no unfair transfer pricing involved and the profits are taxed appropriately in their respective jurisdictions. Now, suppose the trading company that manages the manufacturing process is located in a tax haven and the profits accumulate there. Currently, each tax office in each country can only tax the local partner for the share of profits earned in their own jurisdiction and so long as each partner is "arms length" from the offshore company, the profits earned by the offshore company is legitimately tax free. The whole issue of transfer pricing becomes difficult to assess in e-business. In particular: (i) the value of intangibles such as expertise and databases; (ii) identifying, tracing and quantifying cyber-transactions; (iii) legitimate transfer of profit to offshore companies that are actual trading centers. These complications are compounded by a 60 billion dollar a year international development aid program that endeavors to assist small countries develop commercial capabilities - an aid program paid for by tax payers in the same developed countries that are trying to stem the flow of dollars from private investors to the undeveloped countries that are now receiving the dollars as aid. Now the UN and the World Trade Center are helping set up trade programs in hyperspace that will assist the underdeveloped countries (in particular tax havens) establish legitimate methods of moving profits out of the developed countries and into the undeveloped ones. The time has come to think about joining the action, but you have to be careful and play by the rules. Moores Rowland, one of the largest international accountancy firms in the world acting in concert with the e-Business Incorporated, can help you get launched into a profitable future in cyberspace. e-Business Cyberspace Station The e-Business Cyberspace Station is where your actual transactions take place. It is the virtual equivalent of an office complex, with related business cybersuites separated on different decks. Your cybersuite is a web site with its own URL address, email addresses (you can set up as many addresses as you need), display area, meeting room, notice board, message service, and secure transaction area where you can buy or sell your products or services. You can send automated replies to incoming e-mails, keep e-mail messages in a secure in-box that you can read from other mail services (such as hot-mail.com or mail.com) and/or forward messages to any other email address(es). Your office can be open to the public or you can "hide" your office from all but trusted trading partners and issue a password for entry. Visit a demonstration CyberSuite right now. |
