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Ensure Banking Privacy and Build
your Wealth Tax-free By Using Tax Havens and Off-shore
Bank Accounts.
The Landscape is Changing - Are Off-Shore Bank
Accounts the Right Thing?
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With
increasing insecurity and taxes, tax havens
such as a offshore bank may be a temptation.
The problem is the landscape is constantly changing.
Making the wrong move can expose you to severe
monetary penalties or at worst the loss of physical
liberty and/or all your assets.
In
the United States all income earned outside
the country is taxable, in Canada there are
limits on non-taxable offshore earnings. However
In an atmosphere of increasing predatory litigation
and increasing infringement on privacy, the
real concern is not just taxation but how can
one safely protect what one has built up
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over
a lifetime. The concept of having an offshore bank
account is very tempting. But are you really protected
by the laws of that country or are you just putting
yourself in a position of new vulnerability? Those
are real concerns.
The S.E.C. and former Tax Havens?
Since 911 one has to particularly careful as banking
privacy may be more of an illusion than a reality.
The S.E.C. (the Security and Exchange Commission)
has used the terrorist threat as a strong arm tactic
to gain access to the information on offshore accounts
in virtually all jurisdictions. In essence, with electronic
banking and excessive tracking there is no such thing
as banking privacy anymore. All the SEC has to do
is compare declared offshore earnings with the information
in those accounts to charge you with tax evasion.
The Tax Haven Solution:
What can one do? First of all go to a jurisdiction
where banking privacy is protected and secondly
structure your affairs legally in a jurisdiction
that is most favorable to you. In some jurisdictions,
if you or your company is domiciled but not living
in that country 100% of what you earn outside the
country can be considered tax-free, not withstanding
the fact that you may have to pay a small annual
business fee. This by definition is a tax haven.
Typically a tax free haven is offered by countries
that have little or no means of exporting goods
and services to offset the imbalance they would
otherwise have in terms of their overall currency
exchange. They benefit because of the cash flow
in, you benefit in that what you earn offshore is
tax free. The United States and Canada play a similar
game – they make it very difficult for residents
to move money out by discouraging offshore investment
but at the same time make it very lucrative for
foreign investors to move money in.
3 Benefits of a Tax Haven
Should Americans and Canadians structure their affairs
in a tax free haven not only can one earn money
tax free but one can have the added advantage of
bring able to participate in extremely lucrative
high yield “international investments”
in your own country as a foreign investor. Having
a offshore bank account may be something you can
explore in regard to banking privacy, being insulated
from predatory lawsuits, building your assets and
to legally avoid excessive taxation.
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