Case Studies

IBC for Asset Protection                                              
The Problem
An Italian structural engineer has accumulated significant wealth over the last 20 years in a successful career. He is concerned that, in the unlikely event that he is sued by his clients for malpractice his personal assets will be seized.

The Solution
A Seychelles/BVI/Belize IBC is formed to hold all the assets a structural engineer based in Italy. Should the engineer be sued for malpractice or go bankrupt these assets are locked in the IBC Company and cannot be seized by creditors.

IBC for Personal Service Companies                            
The Problem
Mrs. Padayachy is likely to spend more than eight months in each country in which he undertakes a project and is therefore likely to become tax resident in that country and subject to that country's full rate of tax on the income generated from the project.

She is normally resident in a low tax country and is therefore unwilling to pay higher levels of tax. She also finds it difficult to be competitive when she quotes for a project unless she is tax efficient in the way that she works.

The Solution
She should set up a personal service company. This company, rather than her in a personal capacity, should enter into contracts with clients. If her company is located in a jurisdiction that has a tax treaty with the country in which she carries out the work, the company should be able to be paid gross of tax on the assumption that it will be taxed in the country where her company is located. Her company can then pay her a moderate salary, leaving the balance of the contract value to be taxed at the company's low rate.