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bigduckontax
bigduckontax, Accountant
Category: Tax
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What kind of businesses can be set up to trade in a tax haven?

Customer Question

What kind of businesses can be set up to trade in a tax haven? For example if i was to open a pub trading in the uk would i be able to register the company in a tax haven in order to avoid paying VAT or Corporation Tax? I only ask as I'm concerned about the result of today's election!
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
If your proposed organisation were trading in the UK then the place of supply would be the UK and should the turnover reach or approach 82K in any one year then it would have to be registered for VAT and operate within the UK VAT tax regime.
As for Corporation Tax this could possible be avoided by means of a sister companies in a tax haven, but operations of this type do not come cheap; they are big business in say the Channel Islands, Gibraltar or other well known areas. Your organisation is unlikely to match for example Vodafone or Starbucks who can afford such arrangements. Furthermore, with the more extensive exchange of information between HMRC an overseas jurisdictions tax matters are being tightened up world wide.
If you go down this road you will need local, experienced professional advice to assist you.
I do regret that I have had to rain on your parade.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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