Some of you may be wondering how off-shore tax companies save you tax, and how it all works. It may surprise you to know that I looked into it about 20 years ago, when I was getting fed up with the enormous amount of tax I was paying. And no - I wasn’t earning enough to make it worthwhile.
Some details have changed, and I have simplified the situation, so please don’t take any figures I am quoting as exact - they are merely an illustration to give you an idea of how it all works.
First of all, why do we have a problem. Well, the answer is that we pay an awful lot of tax, one way or another.