• Tax Planning
  • How tax treaties can be used in tax planning
  • What is treaty shopping?
  • What is tax deferral?
  • What does offshore mean?
  • How can you lower your taxes through international corporate structuring?
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• Asset Protection
• Estate Planning

What is tax deferral?

The legislation of certain countries expressly provides for the deferment of tax in certain circumstances. Such deferment may be attractive in terms of cash flow and interest saving and in the light of inflation-related considerations. Tax deferral, which is legal, means a postponement, not elimination, of a tax liability. One could for instance use an intermediate holding company in a foreign jurisdiction in order to accumulate income, realized from other countries then the country of residence of the parent company. This would result in deferral of the tax liability, which would arise were such income repatriated.