EOCnet launches virtual office for tax avoiders

NEWS A Bermudan company has launched a virtual office service on the Internet, to provide a tax-free offshore haven for corporates. Companies which sign up for the service, at http://www.eocnet.com , can buy an office - or eSuite - for $2,000 per year. The eSuite delivers secure and confidential offshore processing of electronic transactions. Transactions undertaken by firms within the eSuite are handled via the site's secure servers, and settlements are processed by and deposited into the Bank of Bermuda. The virtual offices can also be used to facilitate data transaction between the US and Europe. The European Union has recognised the Bermudan firm as meeting the standards set in its 1991 Data Protection Act - the company claims it is currently the only non-EU entity in the world that meets these privacy standards. Nick Lockett, lawyer at international law firm, Sidley & Austin, said he suspected the UK government would make changes to its tax laws if the service became popular. "It's easy to shut off these schemes," he said. "Changes can be made in the next budget." Partners in the venture include Sterling Commerce, Cable & Wireless, Bank of Bermuda and PricewaterhouseCoopers.