Glossary

The person who actually benefits from the income or capital associated with owning something, and/or on whose behalf a transaction is being conducted. They are often different from legal or nominee owners, who may just be proxies who get no benefit from the asset, whose identity is used to hide the real beneficial owner.

This principle allows tax authorities to ignore any transaction, or step in a transaction, that is designed only or primarily to get a tax advantage. The principle is intended to steer courts away from being too permissive towards tax avoidance.

This principle allows tax authorities to ignore any transaction, or step in a transaction, that is designed only or primarily to get a tax advantage. The principle is intended to steer courts away from being too permissive towards tax avoidance.

HNWIs, pronounced Hen-Wees: Wealthy individuals. Commonly this means people with investable assets worth over US$1 million. In 2011 Capgemini and Merrill Lynch estimated that there were 10.9 million HNWIs worldwide, with financial wealth worth US$42 trillion.

Financial flows across borders that are either illicitly earned, transferred or used. Frequently described as “dirty money”. Breaking laws anywhere along the way earns such funds the label.