oh dear (tm): David Cameron admits he did have PROFITABLE stake in father's offshore

[AtW]

If the holding was equally owned then the capital gain would be below the threshold. Hard to fully comment without all the facts but holding an asset offshore is not necessarily wrong provided the tax is paid. Any tax on the dividends may have been paid or probably more likely, there were no dividends, the profits rolled up in as an 'accumulation' fund.

1) He said he paid UK tax on dividends (that I believe)
2) He said no CGT on sale, it was split as it now appears so LOOKS LEGIT, but I call BS on real value of sold shares - I find it hard to believe two of them spent 5 days giving info when they only had £15k worth of shares
3) offshore fund (from which dividends were paid and capital gains too) did NOT pay UK taxes

[SueEllen]

Delaware is not a tax heaven!!!

It is for companies. Linky

[AtW]

It is for companies. Linky

For STATE taxes - yes, but not for Federal Corporation Tax - as high as 39%!

"A. Every domestic or foreign corporation doing business in Delaware, not specifically exempt under Section 1902(b), Title 30, Delaware Code, is required to file a corporate income tax return (Form 1100 or Form 1100EZ) and pay a tax of 8.7% on its federal taxable income allocated and apportioned to Delaware. This tax is based on an equally weighted three-factor method of apportionment. The factors are property, wages and sales in Delaware as a ratio of property, wages and sales everywhere. "

http://revenue.delaware.gov/information/faqs_cit.shtml

Delaware is just useful because most US lawyer understand its corporate laws, it's convenient to register company there whilst actual business would be elsewhere - saves money.

But this ain't no tax heaven like Panama!

[BrilloPad]

There are some places in the US that are tax havens e.g. Delaware

That has 0% tax.

But companies are taxed according to where they earn their profits, not where they are incorporated.

If only the same structure applied globally.....

[BrilloPad]

Its all a plot to destabilize Putin.

[darmstadt]

Its all a plot to wind up AtW.

FTFY

[PurpleGorilla]

Rich Tory avoids tax.

Is this a story?

[AtW]

Rich Tory avoids tax. Is this a story?

No, the story is how the feck he is still a PM...

[stek]

FTFY

My Vladimira Putina nevizhim......

...to paraphrase Zemfira.....

[SueEllen]

That has 0% tax.

But companies are taxed according to where they earn their profits, not where they are incorporated.

You set up your main company in Delaware, Luxembourg, Ireland or similar.

The other companies are all franchises of this main company so have to pay the main company for buying the goods needed, for the rights of using the name, etc. They therefore make no or very little profit.