Review of the methods for the evaluation of the investment in the offshore centers

Abstract

Most of the authors emphasize the changes in the business environment, which take place after the periods of the crises have passed. The efforts, which are made by various countries (especially the countries of the EU) in order to fight against tax avoidance or aggressive schemas of planning, are accentuated. The international business often uses such instrument as offshore companies for this purpose. Since the performance of the companies, which belong to this category, is treated as breaking the law, they are perceived as illegal automatically. In juridical sense it would be difficult to qualify all the companies which are registered in offshore centers as illegal ones because in this case the companies which are registered in more than fifty offshore centers would be regarded as illegal and any business and financial transactions with these companies are against the law. Another aspect is as follows: in the taxing schemes at the international level the companies, which perform in such centers, help to reduce corporation tax, which makes up 15% in Lithuania. Therefore, if the companies are taxed according to the tariff which is twice as more as potential profit, the withdrawal of the capital from the country can be the only result. Also the fact that the neighbouring countries do not take analogous measures should be taken into account.