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Do you know that the term 'offshore' originates from the Channel Islands (Jersey, Guernsey etc.)? They are off the coast of Great Britain and have a policy of taxation that can be beneficial for some. Today the term is sometimes used to refer to tax havens in general. When you begin thinking about moving some of your investment money offshore you will quickly learn that governments don't like you to have money in a place where they can't track the movement of every penny. Agencies like the I.R.S. make big news out of prosecuting a few companies or individuals for hiding profits on foreign investments and not paying taxes on those gains. Those few cases frighten many people so that they won't even consider opening an offshore bank account. Let's set the record straight. There is nothing illegal about moving your investments offshore. Why should it be? It's your money. In a free society you should be able to do what you want with your money unhindered by your government. Don't confuse offshore investing with tax avoidance. As a citizen of the U.S., Canada or Great Britain you are required to report and pay taxes on all profits and income no matter where it is earned. There is nothing confusing about an offshore bank account. It is simply an account held in a bank that is located outside your country of residence. In most cases you would choose a bank that is located in a low tax jurisdiction and offers certain financial and/or legal benefits to account holders. Panama is good example of a country that is attracting foreign bank deposits. They use the U.S. dollar as the national currency, so there are no exchange costs for U.S. citizens. Because the U.S. managed the Canal for so many decades there are many Panamanians who speak English. An even greater benefit of Panama banking is they have no agreement with the U.S. to share information about their customers. Who would benefit from a bank account in a foreign country? - Those who wish to bank in multiple currencies - Those seeking international access to their money - People who require greater flexibility from their bank account - Those who would like to add an extra layer of privacy to their financial dealings - Those who want maximum asset protection - Those who want investment opportunities not available domestically A number of countries have designed local laws to attract investment. No longer do you have to visit the country to open a bank account. You may need an introduction to the bank before you can open an account, but there are legal firms and agents that can do that for a fee. In addition you will be required to submit certain paperwork, forms of verified ID and then deposit funds. Good offshore banks make it easy for customers to conduct all ongoing banking activity through the internet, e-mail, mail, fax or telephone. Many banks offer full credit and debit card services, so you have easy and direct access to your funds at all times. The U.S. Congress seems to think that your money really belongs to the government and they want to know what you are doing with your funds at all times. You must complete an I.R.S. form "Report of Foreign Bank and Financial Accounts" when you open an offshore account. That form (Treasury form 90.22-1) must be completed and returned to the I.R.S. by June 30th of each year you possess a foreign account. A major benefit of moving money offshore is that through your offshore bank or stock broker you can have access to some very profitable investments that are not available within the U.S. We now live in a global economy. Groups like CreatingWealthClub.com can help you take advantage of it.
Article Source: http://www.bharatbhasha.net Article Url: http://www.bharatbhasha.net/finance-and-business.php/89720 Article Added on Saturday, August 9, 2008
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