Why Go Offshore?

Introduction - Today we read about a largeexpensive real estate in your own name, boats,
number of people from a variety of differentplanes, bank accounts etc? Nothing is different.
countries going offshore. By going offshore wePeople with large amounts of assets are a target
mean opening offshore bank accounts, formingand they have every right to keep there financial
offshore companies and offshore foundations inaffairs as private as possible and in many
tax haven countries. Some are even openingcountries it is essential to their health.3) Kidnapping
offshore stock trading accounts. This sort of- In many countries kidnapping victims are
activity and gets a lot of people wondering why allselected based on real estate holdings. The
this sudden excitement over offshore banking andadvantages to putting real estate in the name of
offshore corporations. We'll try to provide somean anonymous Panama bearer share corporation
answers.Taxes - Most people think the rush to goare obvious. When people look up the real estate
offshore is to avoid taxation which would in theirthey can not tell who the natural persons are
minds explain why most are going to tax havenbehind the corporation that owns the real estate.
countries to form their offshore corporations andIn Panama the owners of the stock of a bearer
open their offshore bank accounts. A tax havenshare corporation do not appear in any public
country is a country where offshore derivedregistry or database. When it comes time to sell
income is not taxed. The jurisdiction will usuallythe real estate the corporation that owns the real
look towards taxation on imported goods toestate is sold, not the real estate. This prevents
derive their tax base. Generally a tax havenwould be kidnappers from following real estate
jurisdiction such as Panama will also not have anysales reports to look for potential victims thus
capital gains tax, no inheritance tax and corporateprotecting the subsequent owner. The same
taxes are generally fixed in the form of a fewapplies to the ownership of a yacht or an airplane.
hundred dollars that is paid each year as the filingAnother popular method of determining who is a
fee for the corporation. Some countries allowgood kidnapping victim is to have a bank
people to earn money when offshore or out ofemployee on the payroll who scours through the
their country tax free and other countries allowfiles at the bank finding wealthy people for you. If
for partial exemptions and others offer no breakyou live in one country and bank say in Panama
of any sort. We do feel that people are goingthis doesn't work very well since the kidnappers
offshore for reasons other than tax avoidance orwould need to cultivate bank employees in
minimization. We often see large corporations arePanama who could isolate victims for them in their
shifting their activities outside of their homeown country. This narrows the field quite a bit
country for reasons other than taxation althoughespecially when you take into account that in
taxation is probably in there as a determiningPanama a bank employee is risking a felony to
factor as well. Their operating expenses are soviolate bank secrecy which is far from the case in
high there is precious few net profit dollars left tomany other countries that routinely complain
be taxed. These companies are trying to stayabout bank secrecy and offshore jurisdictions.4)
competitive in their market and are choking onIdentity Theft - Of course the prime identity
the expenses associated with employee wages,theft target is one who has wealth and thus is
employee benefits, employee medical plancapable of carrying large amounts of credit. With
premiums, litigation insurance premiums,generally non existent bank privacy let alone
discrimination lawsuits, unjust termination lawsuits,secrecy in many countries scoundrels are free to
retirement benefits, disability insurance premiums,roam through credit reports with bank details,
unemployment insurance premiums, and standardscredit card details etc and plan a devastating
for health and safety imposed by their respectiveidentity theft attack. These crooks even order
governments in the workplace which then bringsprivate detective reports on their victims to really
us to high costs associated with office space. Fewlearn as much as they can about them. Of course
if any of these expenses follows the largethe public records databases are all too
corporation when they move offshore. Taxesaccommodating providing details like drivers license
tend to come into play but that is only one smallrecords, who owns the loan on their house, cars,
piece of the equation.Today we see a largeboats etc, what credit cards they have and so
amount of phone rooms coming to Panama.forth. Credit bureau secrecy is non-existent as
These are usually not new jobs being created;evidenced by the vast amount of identity theft
they are jobs moving to Panama from otherand credit card fraud. Offshore banks in Panama
countries. These jobs are generally customerand other offshore privacy jurisdictions due to
service jobs, support jobs and soft sales jobsbank secrecy do not report to any credit bureaus.
where the salesperson offers more explanationIf you do not need credit why have regular credit
than sales pressure. The companies tend to savecards. Use offshore bank debit cards that just
in many ways enabling them to be competitivesweep the money directly out of your bank
and offer a competitive level of service to theiraccount and thus you stay private with how
customers. Of course the effect of companiesmuch you spend and how much credit you have
moving from the large North American andnot appearing in any credit reports. The history of
Western European countries is damaging to sayyour purchases would also be immensely harder
the least to those economies they are departingfor say a private detective to get from an
from.Privacy Concerns - Let us look at some ofoffshore bank; they seem to have no trouble
the reasons why people move their assets to angetting this date from regular banks in many
offshore tax haven that is also a privacy havencountries.5) Frivolous Litigation - In many countries
like Panama.1) Tax Haven Status - These peoplelawyer can operate on contingency and like to
already under the burden of taxation from manysue those who have deep pockets. The best way
of their home countries do not want additional taxto see how deep persons pockets are is to run
burdens. Contrary to popular belief most of thean asset check on them. If their assets are all
money moving offshore has already been taxedprivate like they bank in bank secrecy jurisdictions
by the various home countries and if there arelike Panama, have real estate owned by
additional taxes it would be too burdensome. Theyanonymous Panama Foundations or anonymous
want to be free of additional taxes.2) Privacy -Panama Corporations then the asset check will
People like to be as private as possible in theircome back low on assets, probably too low to
financial affairs. How many of you would strollinvest a lot of time and money in frivolous
through any major city of the world today openlylitigation. This also keeps the persons assets free
displaying a solid gold Rolex full of diamonds alongof pre-trial attachment which is a favorite trick of
with a nice large diamond ring? Not too many!unethical attorneys that is allowed in most of
Why? Because you do not want to run the riskthese non-privacy jurisdictions.6) Privacy - Some
of becoming a victim of robbery or assault. Sopeople just want to keep their affairs private and
what do you think is different about havingthey should be able to do just that.