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?

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 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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