PROBLEMS OF INVESTIGATING THE ECONOMIC INFLUENCE OF OFFSHORE COMPANIES
Keywords:offshore companies, investigation problems
An offshore company as a business organization is very popular in the world; they have a significant impact on the economy, security, and tax collection. However, an offshore limited liability company is very poorly researched. There may be many reasons for this.
The first problem which the investigators are faced with is the recipiency of information about the activities of offshore companies including information about tax collection. This requires a positive and close cooperation between tax authorities of the offshore company investigators. The issues of goodwill of provision of information and confidentiality of information obtained arise from the latter. Another problem is the development of methodology to identify the offshore companies that pay taxes in a certain country. It should be noted that the formation of the European Union brought a substantial change in the registration of offshore companies, the list of registration territories had changed. For example, after Cyprus, Malta and other countries joined the European Union it became difficult to use offshore companies registered there. However, only companies registered within the European Union had experienced difficulties, but not the ones registered in third-countries.
Problems of investigation of offshore companies can be divided into economic, legal and political.