Is a somewhat outdated theory coined by a famous American Investment Advisor, Harry D. Shultz.
The 3 Flags Theory suggests distributing one's assets, citizenship and business across different jurisdictions.
Through a 3 Flags distribution, the individual can obscure fiscal residency, thus minimizing or eliminating the payment of taxes while maximizing personal liberties and corporate rules. In the modern era, the 3 Flags Strategy has been challenged by changing definitions of Fiscal Residency, Global Anti-Money Laundering Regulations and Global Corporate Tax rates.
In practice, Shultz's theory flies too close to tax evasion. As a result, newer strategies tend more towards globally suggested standards for minimum personal and corporate taxation levels. Find out more interesting content at Taxes category!
