| Is offshore banking just for crooks and | | | | provide as much or more safety to you and |
| conmen? Well, let me put your mind at rest | | | | your banking offshore needs. |
| and say, no. | | | | |
| | | | Some banks will open a so-called numbered |
| An offshore bank account is simply a bank | | | | account. A numbered account is maintained |
| account in another country. Some people have | | | | under a number (or a false name) only; the |
| them because they were born there. Some have | | | | actual account holder's name is protected by |
| them because they do business abroad. Some | | | | the bank. Such accounts may be held by both |
| have them because they want to have money | | | | individuals and corporations. The bank itself |
| kept safe from nuisance law suits. Some have | | | | must know who you are, under 'due diligence' |
| them because their own government is | | | | and 'know your client' rules. |
| unstable. Some have them because their own | | | | |
| currency is unreliable. Some have them | | | | Also, another benefit of going offshore is |
| because they want to hide money from the | | | | you may save money in taxes. Offshore banks |
| wife! | | | | are located in tax havens. Not having to pay |
| | | | taxes can save businesses significant amounts |
| There are other advantages too. First, no tax | | | | of money and is the main reason, other than |
| is deducted from interest earned on deposits. | | | | privacy, that individuals choose offshore |
| Secondly, there will, or should be, be no | | | | bank accounts. |
| active onshore bank accounts to aggravate | | | | |
| your case for non-resident classification the | | | | However, you don't have to be ultra-rich. All |
| Inland Revenue or IRS. And, third, private | | | | you have to be is an entrepreneur interested |
| offshore banking is strictly confidential. | | | | in doing business abroad or via the world |
| | | | wide web. |
| You might also want private offshore banking | | | | |
| to: | | | | Because credit cards provide easy access to |
| | | | offshore funds and accounts in tax haven |
| - Expand your business; | | | | countries, this situation allows income to be |
| | | | hidden. Although is not illegal to have an |
| - Simplify business administration; | | | | offshore credit card, the average person does |
| | | | not need one. Some individuals use offshore |
| - Asset protection; | | | | credit cards to evade paying taxes. |
| | | | |
| - Global and/or tax-free investing; | | | | This is a foolish reason to get an offshore |
| | | | account. If you are resident in and doing |
| - Trade worldwide. | | | | business within a country, you are subject to |
| | | | its tax laws. If you are also a native, your |
| Simplicity of operation may be even more | | | | wiggle room with regard to local taxes is |
| important than lower taxes. If you are | | | | likely non-existent. Take advice from a |
| planning to set up a company other than a | | | | specialist accountant before trying to hide |
| bank or other finance-related company, then | | | | the revenue from your dry-cleaning business! |
| you will find certain jurisdictions to be | | | | |
| more suitable for business operation. | | | | If, however, you are doing business abroad, |
| Different countries obviously have different | | | | and your money stays abroad, and/or you're |
| laws, and there may be huge differences | | | | are not domiciled in the country youre |
| between them. | | | | operating from, it becomes progressively |
| | | | easier to own and operate an offshore bank |
| Any country that is not your home country may | | | | account legitimately. You just need to get |
| be considered offshore and many of these | | | | up-to-date on local tax law. |