What benefits do an IBC offer?

The use of offshore financial centres has been prompted less for tax planning purposes than by the desire to protect assets and achieve a degree of privacy no longer possible in the main money centres of the world. In offshore financial planning, the IBC is considered to be among the most effective means of accomplishing these goals.

An IBC can be made the beneficiary of a trust, the trustee, or the protector overseeing the affairs of the trust or the foundation. The Articles and Memorandum of Association can be broadly worded to enable any normal business or personal activity to be carried out, other than banking, trust services, or insurance.

Owners of real estate, pleasure craft, etc. may purchase, or transfer title, to an IBC and register their vessels or hold assets in an offshore jurisdiction. This precaution can preserve anonymity of ownership and may protect the assets from seizure or facilitate the purchase from existing offshore funds. The tax consequences of the transfer of assets should be investigated.