Page

Foreword

xi

Preface

xiii

1.

Introduction to Offshore Financial Centers

1

2.

Financial Planning and Offshore Financial Centers

5

Section 1. Generally

5

Section 2. Basic Concepts of Offshore Use

8

Section 3. Selection Factor Considerations

12

3.

International Taxation Outbound Considerations

17

Section 1. Introductory Overview

17

Section 2. Corporate Organization

18

Section 3. Organization and Controlled Foreign Corporations

24

Section 4. Organization and Foreign Base Company Income

31

4.

Trusts and Intangible Property

55

Section 1. Foreign Trusts and Transfers

55

Section 2. Foreign Trusts

59

Section 3. The Purpose of Foreign Trusts

60

Section 4. Reporting Mandates of a Foreign Trust

71

Section 5. Intangible Transfers

72

5.

Exit and Entry Transactions

79

Section 1. Introductory Overview of Reorganizations

79

Section 2. Review of Domestic Reorganizations

79

Section 3. Section 367 and Reorganizations

83

Section 4. Foreign Corporate Liquidation

89

6.

Taxation and Entry Considerations

95

Section 1. United States Concepts and Source of Income

95

Section 2. Corporate Organization and Entry Considerations

99

Section 3. Reorganization: Foreign and Domestic Corporations

104

Section 4. Reorganizations: Foreign Corporations-Foreign Corporations

110

Section 5. Corporate Liquidations: Foreign Subsidiaries

114

Section 6. Foreign Trusts and Beneficiaries

116

7.

Section 482 Transfer Pricing

127

Section 1. Overview of Section 482

127

Section 2. Generally

129

Section 3. Arm’s Length Concepts

130

Section 4. Specific Transactions

132

Section 5. Allocations and Section 482

145

8.

International Transactional Risks

153

Section 1. Risks

153

Section 2. Legal Risks

154

Section 3. Market Risks

175

Section 4. Credit Risks

183

9.

Offshore Supervision of Financial Transactions

197

Section 1. Generally

197

Section 2. Tax Practice and Procedure

198

Section 3. Enforcement

199

Section 4. Taxpayer Defenses

201

Section 5. Criminal Enterprise Supervision

204

Section 6. National Economic Security Issues

211

10.

Offshore Structural Arrangements

219

Section 1. Generally

219

Section 2. Organizational

219