We don't know if it will lead to more or less use of
offshore services. We hope that it will be more for obvious reasons. However,
there will likely be no reduction in the number of wealthy individuals looking
to reduce their overall tax burden. Whether they use offshore options, tax
breaks available in their home country, or change of citizenship - they will
find a way to lower their tax burden.
This is what we believe will happen in the current environment (i.e. people will
keep looking for ways to minimize their tax burden) and will continue to do so
over time. People with wealth have more options than people that don't and it is
unlikely the government they live under can get them to pay more than they are
willing to pay in the long run.
Not everyone that uses an offshore company is wealthy or has money to protect.
Many times an offshore company is just a better option than incorporating in an
individual's home country.
If you have any questions about the above, send us an email.