Offshore
tax planning is a difficult field to navigate. With international laws
concerning transactions and taxation it can be almost impossible and potentially
negligible for an individual to begin planning without sound information and
advice from a financial tax planner.
An
offshore tax planning strategy can offset major taxes that are often imposed on
profits or interest rates on trusts and bank accounts. Also, businesses can
often use these plans to avoid the major corporate taxes of most western
nations.
Evaluate
your needs and consider why your aim is to set up an international tax plan.
Tax planning overseas carries a negative connotation as it is most often
associated with corporations and wealthy individuals attempting to evade taxes
and do illegal transactions. This is not the case for most people with
financial tax plans overseas.
A United States citizen will always be required
to report either corporate or personal international assets. Avoiding this
requirement is illegal and criminal charges will eventually be brought up by
the IRS criminal division.
Each year that the taxes are misreported is treated
as one individual offense. The International laws are also evolving. Where the
United States once had trouble in getting international tax information on
citizens, the use of treaties and internal organizations like the Organization
of Economic Cooperation and Development are facilitating the government on
preventing tax evasion practices often employed by corporations and individuals
attempting to avoid taxation altogether. These laws are becoming even more
strict as the years progress. But there are still ways of lowering taxes and
possibility avoiding them altogether in some instances.
Offshore
tax planning can offer a great deal of secrecy in addition to profitability.
Public shareholders are not a requirement for these often small-operation
international banks. As a result there is no need to publish quarterly
statements. Also, the governments in these tax havens have domestic laws that
prevent the government from knowing the names of account holders and how much
are in the accounts. The only exception is in cases suspect of criminality.
In
these specific cases a great deal of suspicion is required and an extensive
court order must be granted to the government. Only then will your account
information be released along with the information of beneficiaries associated
with your overseas business. The secrecy has often allowed for an increased flow
of international transactions as businesses are not required to do a publicly
popular investment.
A
financial tax planner is the best way to set up an international plan. As these
people are skilled and accredited in understanding the international market
including the various ways jurisdictions interact they are best suited to
organize and advise on the legality of your plan and the profitability you can
expect to acquire from your financial plan.
When attempting to find a good
financial planner, look first to ensure they are accredited by the Financial
Planning Association or similarly reputable organization that trains financial
planners. The industry of international financial planners was, and in some
instances remains, a highly unregulated industry that individuals could set up
businesses and advise people without be either trained or trustworthy. This has
led to some questionability in the industry, but seeking out reviews of
planners and reviewing their recommendations and plans are an easy enough
solution.
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