Offshore TERMS - Offshore DICTIONARY - Offshore GLOSSARY

What is the meaing of... ?

Tax Clearance Certificates
Tax Evasion
Tax Exempt Company
Tax Haven
Tax Treaties
Tax Regimen
TCI
Tranch
Transmogrifying
True Settlor
Trust
Trust Deed
Trust Indenture
Trust Protector
Trustee
 

Tax Clearance Certificates. A certificate issued by an Income Tax Department confirming that an individual departing from a country has fulfilled all his income tax obligations and has no arrears. The certificate must be shown to customs and emigration authorities upon departure from the specific country.

Tax Evasion. Fraudulent or illegal arrangements made with the intention of evading tax, e.g. by failure to make full disclosure to the revenue authorities.

Tax Exempt Company. This is a company designed for companies and individuals who are foreign to the jurisdiction in which it is registered, providing a maximum of privacy, combined with comprehensive freedoms from local taxation. Tax Exempt companies (often referred to simply as Exempt Companies) pay a tax-exempt fee each year. This fee is a fixed annual fee exempting the company from further tax liabilities in the jurisdiction in which it is registered. It also has to pay annual filing fees (governmental fees) and domicillary fees (service provider's fees) in order to remain registered. The relevant tax-exempt fee for the relevant jurisdiction is denoted in the e-offshore list for every jurisdiction.

Tax Haven. An international banking and financial centre providing privacy and tax benefits.

Tax Treaties. Tax treaties are international agreements or conventions concluded with the object of eliminating double taxation by the contracting states. International double taxation may be loosely defined as the imposition of comparable taxes in two (or more) states on the same taxpayer in respect of the same subject matter and for identical or overlapping periods. The most harmful effects of double taxation are on the exchange of goods and services and on the movement of capital and persons.

Tax Regimen. The local tax treatment of income tax, foreign source income, nonresident treatment and special tax concessions which, when combined, form complex issues.

TCI. Turks and Caicos Islands.

Tranch. A bond series issued for sale in a foreign country.

Transmogrifying. Conversion of nonexempt assets to exempt assets.

True Settlor. The true grantor is not the true settlor, and his or her identity is kept quite private by the trustee. See grantor trust.

Trust. An entity created for the purpose of protecting and conserving assets for the benefit of a third party, the beneficiary. A contract affecting three parties, the settlor, the trustee and the beneficiary. A trust protector is optional but recommended, as well. In the trust, the settlor transfers asset ownership to the trustee on behalf of the beneficiaries.

Trust Deed. An asset protection trust document or instrument.

Trust Indenture. A trust instrument such as a trust deed creating an offshore trust.

Trust Protector. A person appointed by the settlor to oversee the trust on behalf of the beneficiaries. In many jurisdictions, local trust laws define the concept of the trust protector. Has veto power over the trustee with respect to discretionary matters but no say with respect to issues unequivocally covered in the trust deed. Trust decisions are the trustee's alone. Has the power to remove the trustee and appoint trustees. Consults with the settlor, but the final decisions must be the protector's.

Trustee. A person totally independent of the settlor who has the fiduciary responsibility to the beneficiaries to manage the assets of the trust as a reasonable prudent business person would do in the same circumstances. Shall defer to the trust protector when required in the best interest of the trust. The trustee reporting requirements shall be defined at the onset and should include how often, to whom, how to respond to instructions or inquiries, global investment strategies, fees (flat and/or percentage of the valuation of the trust estate), anticipated future increases in fees, hourly rates for consulting services, seminars and client educational materials, etc. The trustee may have full discretionary powers of distributions to beneficiaries.

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ALL or NONE - ARBITRAGE -  ASK - AUTOMATIC EXECUTION - BASIS POINT - BID - BROKER - COST OF CARRY - COUNTERPARTY - ENTRY ORDER - FOREX - FOREX TRADER - LEVERAGE - LIMIT ENTRY ORDER - LIMIT ORDER - LONG POSITION - LOT - MANUAL EXECUTION - MARGIN - MARGIN CALL - MARKET MAKER -  MARKET ORDER - MINI ACCOUNT - OCO ORDER - OVERNIGHT - PEGGING - PIP or POINTS - POSITION - PREMIUM - QUOTE BUY SELL - ROLLOVER - SHORT POSITION - SLIPPAGE - SPOT FOREIGN EXCHANGE - SPREAD - STOP-ENTRY ORDER - STOP-LOSS ORDER - SWAP - TICK - VOLATILITY - WHIPSAW - WHISPER NUMBER