Acta Universitatis Danubius. Administratio, Vol 1, No 1 (2009)

Abstract

Taxation system is a necessary evil. Almost the entire world admits its utility, but even necessary as it is, the taxation system remains an evil. Fiscal paradises had been born heavily, but they multiplied quickly. In specialization literature, as well as in juridical and economical literature there are few and modest attempts of analysis of fiscal paradises, although a circumscribing of the area that is covered is not difficult to realize. Every state can be used as fiscal paradises for certain persons on the basis of several taxation agreements that provide an auspicious  system for certain types of incomes and investments performed by foreigners in the respective country. There is a multitude of possibilities for the decrease of fiscal overwhelming. A legal possibility is the fiscal
scheduling using the offshore companies registered in jurisdictions with fiscal paradise status. Fiscal
scheduling through offshore company means the election of that type of company that fits for the
purpose and interests of the business. There is also the problem of the election of the best jurisdiction
in concordance with the purpose pursued. Fiscal paradises represent the fertile ground for the manipulation of taxation basis of the benefits, through utilization of intermediate transfer prices,
having as justifiable basis economical transactions, most of the times simulated transactions. The legality, but most of all the ethics of the techniques used are al least controversial.