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Internet: The biggest tax haven

There are several hundreds of millions of people who are users of the network, which has become more of an offshore territory. Through it you can move funds and transact business, monetary and stock market in real time from one to another part of the world. In June 2001 there were 123 million Internet users in Europe, of which more than seven million were living in Spain. In December 2004 there were already twelve million Spanish Internet users. In developed countries, Internet use has grown annually by about 50% since the late 90's.

Internet is configured as an area with very few rules and with a great freedom in all senses and is perhaps the clearest example of the globalization of finance. The network has revolutionized traditional aspects of offshore business, as the transfer of funds, online banking E-commerce and the establishment of companies. With the use of information technologies and communication, physical proximity to the offshore centre has lost its revealance. To some extent, there is an offshore time before and after the Internet. There are hundreds of online banks where from your computer and email, you can open accounts and make all kinds of Banking, including the application of a credit card.

With respect to taxation, it is difficult to know the physical location from where a trading company it operates in the network and therefore technically establish where to pay your taxes. So it is determine which jurisdiction has to watch the network or lay and collect taxes. This last point, how taxing Internet transactions is one of the major problems of the tax authorities of developed countries.

The e-Commerce growth and tax savings on the transactions it generates, has led some centres to promote the establishment on favourable terms, legal and fiscal, companies Web-based business. This can provide better services to customers around the world.

Many large companies offer Internet service lines that are parallel to the distribution and sale of regular commercial channels. Some of these services are provided from offshore jurisdictions with a significant tax savings. These companies sell some of its products, software for example, through the network but using companies based in tax havens, Which pay royalties to the parent country located in the high court. It is a complex procedure, but perfectly legal to save taxes if commercially justified and all doubts are cleared for the transactions with related companies.

The internet also provides many companies to move their activities centre, them who do not deal directly with customers, the "back office" to other jurisdictions. It also allows data storage for security purposes in places far from the office or company headquarters.

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