Assume the following structure:

A printing and stationery company, located in an IOFC (international offshore finance center) or tax haven, handles any appropriate printing, stationery, and related requirements of the group members.

There is a justifiable profit margin.

Potential Business Benefit

Potential cash earnings.

Potential Tax Benefit

Payments by the various members would be deductible.

Profits in the hands of the printing and stationery company would not be subject to tax.

Caveat

The figures must take into account all material costs, including transport, to insure that the operation makes business sense.

Care should be taken to insure that the profits of the printing and stationery company do not fall within the tax nets of the countries of operation, that all international tax planning transactions should be bona fide, and that all payments between related parties should be at arm’s length.