The article defines the essence of the mechanisms of functioning of offshore jurisdictions, which include: the stepping stone method, which consists in the division of assets among different jurisdictions; credit scheme, which involves providing loans at interest and makes it possible to transfer funds to offshore; transfer pricing. | Mechanisms of functioning of offshore jurisdictions in the world system International Journal of Management IJM Volume 11 Issue 4 April 2020 pp. 500-510 Article ID IJM_11_04_048 Available online at http ijm JType IJM amp VType 11 amp IType 4 Journal Impact Factor 2020 Calculated by GISI ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication Scopus Indexed MECHANISMS OF FUNCTIONING OF OFFSHORE JURISDICTIONS IN THE WORLD SYSTEM Tetiana I. Shynkar Lviv Branch of Private Higher Education Institution European University Lviv Ukraine Tetyana V. Kurylo Lviv State University of Internal Affairs Lviv Ukraine Andrii V. Kholostenko Odessa State University of Internal Affairs Odessa Ukraine Serhiy S. Miroshnychenko State Fiscal Service University of Ukraine Irpin Ukraine Olena Nazymko Donetsk Law Institute of MIA of Ukraine Kryvyi Rih Ukraine ABSTRACT The article defines the essence of the mechanisms of functioning of offshore jurisdictions which include the stepping stone method which consists in the division of assets among different jurisdictions credit scheme which involves providing loans at interest and makes it possible to transfer funds to offshore transfer pricing which provides for the sale of goods to the OFC residents at a lower price for subsequent resale for profit which will be declared in the OFC trading scheme payment of royalties which centers around the registration of copyrights followed by the transfer of rights to a resident of a full-tax jurisdiction in exchange for the corresponding payments the application of tax hybrids. The methods and schemes specified can only be applied in case of the presence of double taxation conventions among the jurisdictions involved in the schemes they can be integrated into more complex mechanisms. Double Irish is the most famous mechanism that has simultaneously absorbed several methods. However the mechanisms specified are not unitary or unique. Keywords .
