Is Offshore Banking
This is one of the frequently asked questions about offshore
banking, and in short, YES, offshore banking is legal. Offshore
banking is so legal that, itís always going to remain legal.
Offshore banking is a benefit to all of society and is
indispensible. Using offshore banking for tax evasion purposes
is what is not legal, and that is usually what is associated
with offshore banking in general and is the cause of the
misconception. Offshore banking is also associated with criminal
activities such as money laundering. This article will clarify
the distinction and examine why offshore banking will remain
The term offshore was originated from the British Channel
Islands, tax havens located literally offshore from the United
Kingdom. Now the term is used to refer to all tax havens whether
islands or not. Technically, just moving your money from an
account in your country of residence to another jurisdiction is
considered offshore banking, even if itís not a tax haven. This
is the main reason why offshore banking will always be legal.
How can it be illegal to move money from one country to another?
Individuals and businesses, large or small, and even governments
all have the need to move money around the world. If moving
money from one country to another was illegal, our global
economy would have serious problems and i donít see how we could
make it. We are constantly ordering items from eBay and some do
so from other countries. People use Paypal accounts to transfer
funds when ordering online. Governments are involved in import
export activity and have to pay for it somehow. So again, no one
can stop you from taking your money to another country; it is a
legal and everyday process that will remain that way.
The thing that is NOT legal is banking offshore for tax evasion.
Depending on which country u reside in, it is usually illegal to
take money out of the country or making money overseas and never
submitting it to your country of residence or declaring it. as
stated, this depends on your tax status and country of residence.
For instance, in the United States, the federal government
requires all citizens to declare all taxable assets regardless
of where they are located in the world. Failing to do so is
committing a criminal offense. There are ways around this though,
such as expatriating for certain amount of time to save on taxes.
International companies can also reduce their tax burden through
using a slick network of offshore bank accounts and IBCs. And
another thing to keep in mind is that a lot of countries donít
charge income tax on money earned out of the country and brought
in. They also donít tax interest earned on accounts.
So, if US citizens and UK and European citizens canít even save
tax through offshore banking, how can it be beneficial?
Saving on taxes is not the only advantage of using offshore
banking accounts. There are many other benefits, including but
not limited to:
-Optimized account Privacy
-Protection from aggressive litigations
-More competitive account structures ad interest rates
-global access to your money
-Ability to bank in multiple currencies
-Access to global business opportunities
And not to forget that those who reside in countries with
corrupt or unstable economic systems have the opportunity to
bank in an economically and politically stable jurisdiction.