| One of the biggest decisions you may ever | | | | Privacy is he second main reason for offshore |
| make is selecting a bank, so knowing all the | | | | banking. The lack of privacy is something |
| facts is very important. Many people are | | | | that many people are not even aware of, so it |
| choosing to open offshore accounts. Why does | | | | seems a completely foreign concept to them. |
| offshore banking seem to be so great? The | | | | The details of your private banking have no |
| 3Ps, or privacy, protection and profit are | | | | protection in most westernized countries. |
| the three major reasons to consider investing | | | | Here are some simple steps to discover the |
| offshore. We will look at them in this | | | | banking systems` fundamental flaw, which |
| article. | | | | doesn`t have heavy penalties for banking |
| | | | secrecy. Getting someone`s bank account |
| Starting with profit, we will take each | | | | details is the first step. This is a lot |
| reason separately. Because of high taxation, | | | | easier than you think. All it takes is for |
| Australia will be used as an example to | | | | someone to pay you with a cheque and you have |
| illustrate the point. Australian workers pay | | | | ready access to their bank account |
| taxes on their wages and pay a goods and | | | | information. The second step is to take these |
| services tax of 10% on things they buy. What | | | | account details to a branch of that bank |
| money remains is deposited into a bank | | | | other than the one the account is actually |
| account and is charged bank account debt | | | | held in. For the last step, fill out a |
| taxes and financial institution duty. The | | | | deposit for $10.00, submit it to the teller |
| small amount of interest that might be earned | | | | and then ask for `your` balance. |
| also gets taxed. You are not alone if you | | | | |
| think this is excessive. The banking taxes | | | | Invading someone`s privacy, even your own, |
| can be eliminated by opening and offshore | | | | really is that easy. So that your money and |
| bank account. | | | | identity are protected, offshore banks have |
| | | | privacy and secrecy tenets to help accomplish |
| It isn`t, and probably never will be, illegal | | | | this. |
| to have an offshore bank account. It is legal | | | | |
| to move your money anywhere in the world you | | | | Now for the last of the 3Ps in banking |
| want and how you want. There are also no | | | | offshore - protection. Protection of your |
| restrictions at all on the amount you choose | | | | assets is the third reason that investing |
| to move. Using the Australian example again, | | | | offshore is a banking solution that is very |
| though there are no restrictions on moving | | | | popular. It is nearly impossible to get the |
| money offshore, it is required to report any | | | | account balance of a bank account in an |
| amount of $10,000 or more to the proper | | | | offshore jurisdiction, unlike the ease with |
| government authorities. On Australian tax | | | | which it can be done for a bank account such |
| return forms, there will be the question of | | | | as the example used above. Jail terms and |
| whether you have $50,000 or upwards in | | | | heavy fines can be imposed for disclosing any |
| offshore investments. As this limitation | | | | information regarding bank accounts in most |
| pertains to individuals, you can put money in | | | | jurisdictions with offshore banks. |
| accounts under the names of your spouse and | | | | |
| or children as well as your own. | | | | A word of caution, though: Even though it is |
| | | | common to conduct onshore banking this way, |
| Simply because it is profitable is the first | | | | if you intend to do your offshore banking on |
| reason you could consider offshore banking. | | | | the Internet, you should be aware that your |
| You would be eliminating taxes, and gaining | | | | hard drive will store all of your |
| access to investments that only particular | | | | information. |
| jurisdictions offer, eliminating any need for | | | | |
| a structure. Finally, a tax neutral | | | | As no other account can, banking offshore |
| jurisdiction makes the compounding effect of | | | | provides these three assets: profit, privacy, |
| money phenomenal. | | | | and protection. It is entirely up to you how |
| | | | you use this information. |