OFFSHORE JURISDICTIONS AS A TOOL FOR MINIMIZING THE TAX BURDEN

Abstract

The article examines offshore jurisdictions as an effective tool for minimizing the tax burden and reducing business costs. The authors analyze the ways in which offshore zones allow companies to reduce tax costs, protect assets, avoid red tape and effectively manage risks. Offshore jurisdictions have been found to contribute to global financial integration by providing opportunities for the easy movement of capital and the protection of confidential information about asset owners. However, attention is also paid to the negative consequences of mass offshoring, such as the reduction of tax revenues to state budgets, the stimulation of economic imbalances, the growth of corruption and damage to the environment. Special attention is paid to the influence of offshore schemes on the national economy of Ukraine, where these processes have a significant negative effect. The study shows that although offshoring can bring economic benefits to individual entities, it can also lead to significant financial losses for the state, a worsening of the economic climate, and a decrease in social welfare. The conclusion emphasizes the need for strict control and regulation of offshore activity at the international level to mitigate its negative impact on the economy, as well as the importance of international cooperation in combating illegal financial transactions. It is emphasized that effective regulation and transparency in offshore zones are key to ensuring economic stability and sustainable development. In addition, the article delves into the historical development of offshore jurisdictions, tracing their evolution and the various factors that have contributed to their current status as tax havens. Through case studies, the authors illustrate the practical implications of offshoring practices, showing both potential advantages and disadvantages for various economies. This detailed analysis helps to understand the complex dynamics between offshore jurisdictions and global economic systems. The study also discusses the ethical considerations and public perception of the use of offshore jurisdictions, emphasizing the need for a balanced approach that considers both economic efficiency and social responsibility. The conclusion calls for a concerted effort among countries to create a fairer and more transparent global financial system where offshore jurisdictions are regulated to prevent abuse while allowing legitimate business transactions. Ultimately, the article aims to provide a comprehensive understanding of the role and impact of offshore jurisdictions in today's economic landscape, offering insights into possible policy measures that can address the challenges posed by these entities.