MODERN OFFSHORE JURISDICTIONS: OPPORTUNITIES AND BENEFITS FOR BUSINESS

Abstract

The flight of domestic capital to offshore zones is due to the unfavorable local investment and tax climate. Economic and political instability, rapidly changing legislation, distrust of the government, as well as the low level of financial market infrastructure development make Ukraine unprofitable for doing business and attracting investment. As a result, investors prefer to invest in the business environment of other countries, which are characterized by more favorable conditions. In addition, the high level of corruption in the country's power environment, combined with insufficient or inactive mechanisms of financial and tax control, create opportunities for mass offshore withdrawal of funds and assets obtained by criminal means. In this context, the need to study in detail the peculiarities of the functioning of offshore jurisdictions and their benefits for business for the further development of effective legislation in Ukraine to control the implementation of offshore schemes becomes especially relevant. So, the purpose of this study is to identify the key benefits and opportunities for business from the operation of offshore jurisdictions. The article is devoted to topical issues of the functioning of global offshore jurisdictions. In particular, the study examines the classic offshore zones and the peculiarities of the companies operation of in their territory. Analyzed the financial services exports indicators and the level of portfolio assets in the gross domestic product of the territories referred to offshore jurisdictions. Outlined the benefits for them from foreign activities. Presented and characterized key business schemes using offshore companies and calculations of economic benefits from their use by business entities. Studied the main components and amounts of costs for the establishment and maintenance of companies in different offshore jurisdictions. Identified the key advantages of using offshore companies for business structures.