| Can offshore banking be your answer to | | | | have no agreement with the U.S. to share |
| earning higher returns on your investment | | | | information about their customers. |
| funds and offsetting the rising cost of | | | | |
| living? Often the answer to that question is, | | | | Who would benefit from a bank account in a |
| yes! | | | | foreign country? |
| | | | |
| Do you know that the term 'offshore' | | | | - Those who wish to bank in multiple |
| originates from the Channel Islands (Jersey, | | | | currencies |
| Guernsey etc.)? They are off the coast of | | | | |
| Great Britain and have a policy of taxation | | | | - Those seeking international access to their |
| that can be beneficial for some. | | | | money |
| | | | |
| Today the term is sometimes used to refer to | | | | - People who require greater flexibility from |
| tax havens in general. | | | | their bank account |
| | | | |
| When you begin thinking about moving some of | | | | - Those who would like to add an extra layer |
| your investment money offshore you will | | | | of privacy to their financial dealings |
| quickly learn that governments don't like you | | | | |
| to have money in a place where they can't | | | | - Those who want maximum asset protection |
| track the movement of every penny. | | | | |
| | | | - Those who want investment opportunities not |
| Agencies like the I.R.S. make big news out of | | | | available domestically |
| prosecuting a few companies or individuals | | | | |
| for hiding profits on foreign investments and | | | | A number of countries have designed local |
| not paying taxes on those gains. Those few | | | | laws to attract investment. No longer do you |
| cases frighten many people so that they won't | | | | have to visit the country to open a bank |
| even consider opening an offshore bank | | | | account. You may need an introduction to the |
| account. | | | | bank before you can open an account, but |
| | | | there are legal firms and agents that can do |
| Let's set the record straight. There is | | | | that for a fee. In addition you will be |
| nothing illegal about moving your investments | | | | required to submit certain paperwork, forms |
| offshore. Why should it be? It's your money. | | | | of verified ID and then deposit funds. |
| In a free society you should be able to do | | | | |
| what you want with your money unhindered by | | | | Good offshore banks make it easy for |
| your government. | | | | customers to conduct all ongoing banking |
| | | | activity through the internet, e-mail, mail, |
| Don't confuse offshore investing with tax | | | | fax or telephone. Many banks offer full |
| avoidance. As a citizen of the U.S., Canada | | | | credit and debit card services, so you have |
| or Great Britain you are required to report | | | | easy and direct access to your funds at all |
| and pay taxes on all profits and income no | | | | times. |
| matter where it is earned. | | | | |
| | | | The U.S. Congress seems to think that your |
| There is nothing confusing about an offshore | | | | money really belongs to the government and |
| bank account. It is simply an account held in | | | | they want to know what you are doing with |
| a bank that is located outside your country | | | | your funds at all times. You must complete an |
| of residence. | | | | I.R.S. form "Report of Foreign Bank and |
| | | | Financial Accounts" when you open an offshore |
| In most cases you would choose a bank that is | | | | account. That form (Treasury form 90.22-1) |
| located in a low tax jurisdiction and offers | | | | must be completed and returned to the I.R.S. |
| certain financial and/or legal benefits to | | | | by June 30th of each year you possess a |
| account holders. Panama is good example of a | | | | foreign account. |
| country that is attracting foreign bank | | | | |
| deposits. | | | | A major benefit of moving money offshore is |
| | | | that through your offshore bank or stock |
| They use the U.S. dollar as the national | | | | broker you can have access to some very |
| currency, so there are no exchange costs for | | | | profitable investments that are not available |
| U.S. citizens. Because the U.S. managed the | | | | within the U.S. |
| Canal for so many decades there are many | | | | |
| Panamanians who speak English. An even | | | | We now live in a global economy. Groups like |
| greater benefit of Panama banking is they | | | | can help you take advantage of it. |