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