| Shell Company |
Article Index for Shell |
Website Links For Shell |
Information AboutShell Company |
| CATEGORIES ABOUT SHELL CORPORATION | |
| types of companies | |
| offshore finance | |
|
A shell Corporation (aka International Business Corporations - IBCs -, Personal Investment Companies - PICs -, Front Companies or "mailbox" companies) is defined in Barron's '' Finance & Investment Handbook '' as "a company that is incorporated but has no significant assets or operations. Shell corporations are not in themselves illegal, and they may have legitimate business purposes. However, they are a main component of Underground Economy , especially those based in Tax Havens . A classic Tax Evasion operation, called Transfer Pricing , is based on the buying and selling through tax haven shell companies to disguise true Profits . The firm does its international operations through this shell corporation, thus not having to report to its country the sums involved, avoiding any taxes. Oxfam International calculates that the flux of money flowing out from developing countries and deposited in tax havens at $50 billion a year - nearly the size of the $57 billion annual global aid budget, of which $35 billion is evaded by foreign corporations, often through transfer pricing . PURPOSES Such corporations may be formed for several purposes:
SEE ALSO ENDNOTES |
|
|