To
receive our free monthly network newsletter enter your
email address below:
ADVERTISING
ADVERTISE
ON THIS SITE!
With over 50,000 qualified readers every month our web-sites
offer a number of cost effective, targeted advertising, sponsorship
and marketing opportunities:
Display advertising - from 'skyscrapers'
to 'buttons'
Content/article submission and sponsorship
Opt-in email marketing
On-line Services Directory listings
Click here to learn more or contact
Peter Wiggins on +44 (0)1424 813852 or email him at peter@lowtax.net.
New On The Network Today
This feed is published daily with selected new or updated
content from across our network. For a list of network sites, many of
which feature daily news, see below.
Providing essential tax news and information for globally
mobile artists, contractors, entrepreneurs, professionals, small businesses,
sportspersons and entertainers.
Lowtax Network Sites
Lowtax Network Portal:
'Low-tax' business and investment in the top 50 jurisdictions covered in
exceptional detail.
Tax News: Global
tax news, continuously updated through the day.
Law & Tax
News: Daily news and background data on tax and legal developments
for international business.
Offshore-e-com:
A topical guide to offshore e-commerce focused on tax and regulation.
Lowtax Library:
One of the web's largest and most authoritative business and investment
information sources.
US Tax Network:
The resource for free online US taxation information, covering: corporate
tax, individual tax, international tax, expatriates, sales and e-commerce
tax, investment tax.
NEW! Personal
Business Tax Guide: Providing essential tax news and information
on business for contractors, entrepreneurs, professionals, small businesses,
artists, sportspersons and entertainers.
Company A is based
in the UK and has been selling computer software
to businesses for a number of years using a
mail-order catalogue and a small direct sales
force. It has successfully set up a UK web site
that allows the purchase and shipping of software
to customers' homes and businesses. The web-site
has started to generate significant quantities
of non-UK orders from around the world.
Company A's Internet
host, Netsource Ltd, who handle most of the
administration of the site, have pointed out
to the company that some of their competitors
have begun to supply software in digital form.
They recommend that Company A does the same.
The company's auditors, MacFarlane & Roberts
(MFR), a medium-sized firm of accountants and
consultants who have specialised in IT and e-commerce,
are asked to advise; they agree that there will
be substantial cost savings on packaging, warehousing,
shipping and handling, but suggest that the
new operation should be set up offshore. They
recommend the Cayman Islands, where they have
a branch.
Netsource worry
that the Caymans don't have sufficiently advanced
telecommunications facilities to handle the
high-bandwidth requirement for complex software
downloads, but are rapidly reassured by MFR.
Netsource also point out that digital delivery
is probably the whole future of software distribution,
so that Company A should be prepared to move
their whole business offshore eventually. MFR
say that, if so, then the Caymans operation
should be set up as a separate entity to minimise
any entanglement in UK taxation. Company A agrees
with this advice, and its shareholders decide
to incorporate SoftDown Ltd in the Caymans with
MFR's assistance.
MFR also recommend
an ISP in the Caymans with adequate facilities
where SoftDown's dedicated server can be co-located.
Netsource are asked to supervise technical aspects
of setting up and running the web-site, since
initially Company A does not plan to have an
office or staff in the Caymans. Company A allocates
project responsibilities as follows:
Formation of
SoftDown Ltd as a Caymans exempt company (it
will pay no taxes, but there are some quite
small annual fees) - MFR (Caymans) Ltd
Negotiation
of licensing deals and technical data specifications
with software suppliers; discounted prices
are to be agreed for digital products; licensing
will follow standard procedures
- Company A
Installation
of server and systems (front-end catalogue
and ordering facilities with multi-currency
secure payment processing package; software
database and distribution system) - Netsource
with Caymans ISP.
Open bank accounts;
establish credit-card merchant IDs and authorisation
procedures - MFR
Installation
of software into the database - Netsource
with Caymans ISP
The advice of
MFR is that SoftDown Ltd as a Caymans company
will have no need to charge VAT in the EU or
sales taxes in the US (see our Tax Law section
for an explanation of this point).
The Lowtax Library
hosts the web's best-known US and international tax news service
costing just $20 per month. Alongside topical, daily news, you can receive
weekly newswires on
a wide range of subjects.
Our 16 up-to-date intelligence
reports cover international tax-planning in depth, including
banking secrecy, offshore funds, e-commerce and offshore gaming.
IMPORTANT NOTICE:
THE LOWTAX NETWORK has taken reasonable care in sourcing and presenting
the information contained on this site, but accepts no responsibility
for any financial or other loss or damage that may result from its use.
In particular, users of the site are advised to take appropriate professional
advice before committing themselves to involvement in offshore jurisdictions,
offshore trusts or offshore investments. All materials on this site copyright
The Lowtax Network 1999 - 2009. Contact
us for further information.
OFFSHORE-E-COM.COM
13/07 
