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