shoes6u8g
Joined: 25 May 2011
Posts: 16
Read: 0 topics
Warns: 0/5
Location: England
|
 Posted: Fri 12:46, 27 May 2011 Post subject: Debunking Offshore Banking Myths |
|
|
one were to read the normal information available through media outlets they would think anyone who uses offshore banking is a criminal. One only hears about offshore banking in the media when a criminal is apprehended. There are many legitimate reasons to bank offshore that don't involve drugs or money laundering. This article will attempt to debunk the common misconceptions about offshore banking and help the reader gain a better understanding of the industry.
The biggest misconception about offshore banking is that setting up an offshore account is difficult and cost prohibitive. When you take a look at Panama, for example, a little research on the internet shows me that I can get a bank account set up for $700 US or less and I don't even have to book a flight to Panama to do it so long as I use the services of a law firm in Panama. The price quoted includes the legal services as well as bank introductions which are done on my behalf without the need for me to physically go to Panama. Not too expensive, not that hard to set up.
Another myth is that it doesn't matter which offshore country you open your business or account in. Many people seem that think that one jurisdiction is the same as any other, and that simply is not true. Each jurisdiction has different laws and regulations in place that can affect the success or failure of your company. Before opening your account, you must determine if the country is best suited for the needs of your business.
Another myth associated with offshore banking is that setting up an offshore bank account is an illegal act and you are involved in tax evasion in your home country. This is not true so long as you follow the tax laws in your home country and pay what you owe prior to sending money offshore. Having an offshore bank account simply allows you to earn and invest money without paying taxes on the capital gains you earn in the offshore destination (assuming you selected wisely and your offshore banking destination has this type of tax law in place).
The people that fall into this incorrect thinking are not to blame. They are only reading or hearing about offshore banking in the news and you only hear about it in the news when a crime has been committed. Offshore banking is a great way to minimize taxes when investing, offers a degree of asset protection and privacy that you simply can't get in your home country.
Of course, it's not in a government's best interests to advertise offshore banking as a method to reduce your tax load because they want to keep all of your money in their economy and help maintain their positions of power. Rest assured those very same people are utilizing offshore banking to their advantage right now. There are some rotten apples that take advantage of the offshore banking industry to perform crimes but this does not mean offshore banking is for criminals.
The post has been approved 0 times
|
|
