Tivot Sandwich: Difference between revisions
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Because Safe Pay is located in Tivot, the IP is recognised by Tivot authorities even though it is registered in the Oan Isles. This builds on the UNAC rule recognising IP from member states. The royalties and capital gains from the IP go to the Safe Pay Holdings Company in Tivot. Thus, Café Pay's income sheet does not show royalties and capital gains as income.
== Benefits for Tivot ==
Given that the total taxes paid to the Tivot government are so low, it might seem that the scheme is not beneficial to the country. Tivot benefits from this through the employment of consultants, accountants, lawyers and information technology personnel who maintain and advise on the systems and mechanism required to administer this scheme on behalf of their foreign clients. Furthermore, the government of Tivot still charges various fees that foreign companies are willing to pay due to the fact that taxes and tax avoidance consulting in their own countries is bound to be vastly more expenses than what is paid in fees to the Tivot government. A system like this needs scale to be profitable given the fact that per company income is nevertheless low. Thus, Tivot benefits from the incredibly large number of companies who use its systems. Foreign companies also rent office space. Coupled with the small amount of land available this makes Tivot property highly valuable. Furthermore, Unlike other OFCs, the financial services sector is only one part of their economy together with transshipment and other industries, thus it is not solely dependent on its tax benefits to raise income.
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