What Are Offshore Tax Shelters?
An offshore tax shelter is any single or series of business transactions that aid an individual in the avoidance of paying some or all of his income tax. Offshore tax shelters are located in countries that do not require income to be reported or do not tax income that is reported. These countries are referred to as tax havens. Depending on the country of residence, offshore tax shelters may be illegal, but in most cases they are considered at least questionable. There are several business transactions that may qualify as tax shelters within a tax haven.
