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From the Managing Director's desk

Preface - LAVECO Newsletter 2015/4.


Váradi László, LAVECO Kft, Ügyvezető IgazgatóWe’re bringing you the IVth edition of the LAVECO Newsletter 2015 a little earlier than usual. Everyone is very busy at the end of the year and around the festive season nobody wants to be browsing through some business partner’s professional material. Which is only natural. The pleasure and intimacy of the holiday should be spent wrapped in the warmth of the family.

This edition will be slightly different from normal. In a rather long leading article I summarise the messages of the 3 previous Newsletters in a different format and with additional content. If you read it all, then it becomes clear: this article does not merely combine the content of 3 editions, but by analysing the most important developments of the last 15 years brings us up to the current situation. The start of the automatic exchange of information in 2017 is now relatively close. At the same time, there is a lot of uncertainty, even among the banks „operating” the system. Even today, the experts can not say exactly what is going to happen and how. There are many questions to which we receive the answer: this may well change in the future. So it is very difficult to see the future clearly, and to offer a certain and definitive opinion.

However, what is already clear is that this is not all going to run smoothly. On the one hand, it will not be easy to resolve all of the technical matters, and the banks are not prepared for this. On the other hand, there is a big question mark over what the authorities are going to be able to do when they are inundated with details, which will include not only the details of the bank accounts of offshore companies, but of all the foreign accounts opened by individuals and companies, irrespective of whether they are in low or high tax countries.

The other thing which is clear is that it will not be all smiles for the bureaucrats at the OECD, as „resourceful” businessmen have already started employing solutions which more than inhibit the complete transparency of the financial system. In fact, the most paradoxical part of it is that there are no ground breaking new solutions. The business world has been using „stooges” for thousands of years. Unfortunately, those who do not want to, or are unable to, appear behind a given company are being pushed once more in that direction. And there may be perfectly legitimate reasons for this, such as problems with competition or asset protection. 

Those who can will, of course, relocate to a place where the automatic exchange of information will have little or no effect, or taxation is very favourable. In the middle of the year a new tax reform was passed in Cyprus which benefits primarily foreigners with capital. The details of this are discussed in an article in this Newsletter.

According to the „ancient” rules of capitalism, only the strongest companies and enterprises remain standing. The ones who are innovative, brave and capable of navigating every situation and finding the most suitable solutions for their requirements. We have attempted to help spread this word in the columns of the LAVECO Newsletter during 2015.

I would like to thank you for your attention throughout the year, and trust that we can count on you in the coming one, too.

LAVECO Newsletter 2015/4. - Why will it still be worth operating offshore companies in the future?

With warmest regards

László Váradi,
Managing Director