International Tax Planning

The object of international tax planning is to determine whether or not to embark on a project from a tax point of view; and, if it is embarked upon (or has already been commenced) then to defer or minimise the imposition of the tax burden falling on taxable events and persons and to do so lawfully. In addition to this, planning must also take into account the attainment of the desired business and other objectives, while taking into consideration all relevant tax factors with particular regard to the danger of double taxation and the advantages which may be derived from the inter-relationship of two or more tax systems.

The role of tax havens in international tax planning lies in the possibility of situating a taxable event or a taxable person in a tax haven with a view to displacing the connecting factor with a high tax jurisdiction and thus permitting a modification in the incidence of tax.