| johnsobas said: The money isn't earned in the US. They don't send the money offshore, it's already offshore. |
It's earned on the basis that US is the main base of operations with no real main branch in the country of business so basically you're running your service or selling your product on US soil, so essentially it is techincally US money otherwise the company has to pay full tax in the country of business, if you haven't seen business applications it's tricky to understand. The money is sent offshore as it's not even kept in the country of business it's sent to specific accounts in certain countries, this is because if kept in the UK or Switzerland for example the US can enquire and even strike up courses of action to retrieve the money.
Offshore in financial terms are accounts in places US/EU etc... has practically little ties with such as various Carribbean locations.
