- Asset protection
- privacy and confidentiality of company owner
- taxation benefits
So how do these three work together to benefit a business owner? Here is an example of how.
Mr Junk Debris is an insurance broker running a business in Sydney, Australia. All of his business operations are based in Australia and all the revenue are derived there too. His salary is between 80,000 and 100,000 which is rather ordinary for someone who owns and operates a lucrative business like insurance brokerage. However, he lives extraordinary daily lifestyle, i.e.
- residing a mansion renting at 10,000 a month
- enjoying a private jet and a state-of-art cruiser
- schooling his offspring in a renowned private school
- and understandably heavy maintenance bills to support a lifestyle like that
Unfortunately for his clients, his business bankrupted (well, I suppose he is not an entrepreneur who wants to change the world, but rather someone who wants to enjoy a lifestyle that depends on other people's money). But anyway, his business bankrupted and so is he himself.
Fortunately for Mr Junk, his residential mansion was not confiscated for the creditors. Of course not, he was only renting it. But the truth is he is renting a mansion that is owned by him and the court can not get proof of it in order to support the confiscation. How does he manage to achieve that?
He registered a company in Marshall Islands - Junkyard Investment Trust. By local jurisdiction, his name is kept away from public probation - privacy and confidentiality that most of IBC offers. The mansion was bought by Junkyard and therefore owned by Mr Junk. He then rented from Junkyard whilst enjoyed the tax benefits. When his Sydney assets get seized for liquidation, his mansion had to be exempted because no one can prove it is Mr Junk's property without obtaining paperwork from Marshall Islands. You know Marshall Islands will not supply the paperwork, complying with its own jurisdictions.
