One of the biggest decisions you may ever make is selecting a bank, so knowing all the facts is very important. Many people are choosing to open offshore accounts. Why does offshore banking seem to be so great? The 3Ps, or privacy, protection and profit are the three major reasons to consider investing offshore. We will look at them in this article.
Starting with profit, we will take each reason separately. Because of high taxation, Australia will be used as an example to illustrate the point. Australian workers pay taxes on their wages and pay a goods and services tax of 10% on things they buy. What money remains is deposited into a bank account and is charged bank account debt taxes and financial institution duty. The small amount of interest that might be earned also gets taxed. You are not alone if you think this is excessive. The banking taxes can be eliminated by opening and offshore bank account.
It isn`t, and probably never will be, illegal to have an offshore bank account. It is legal to move your money anywhere in the world you want and how you want. There are also no restrictions at all on the amount you choose to move. Using the Australian example again, though there are no restrictions on moving money offshore, it is required to report any amount of $10,000 or more to the proper government authorities. On Australian tax return forms, there will be the question of whether you have $50,000 or upwards in offshore investments. As this limitation pertains to individuals, you can put money in accounts under the names of your spouse and/or children as well as your own.
Simply because it is profitable is the first reason you could consider offshore banking. You would be eliminating taxes, and gaining access to investments that only particular jurisdictions offer, eliminating any need for a structure. Finally, a tax neutral jurisdiction makes the compounding effect of money phenomenal.
Privacy is he second main reason for offshore banking. The lack of privacy is something that many people are not even aware of, so it seems a completely foreign concept to them. The details of your private banking have no protection in most westernized countries. Here are some simple steps to discover the banking systems` fundamental flaw, which doesn`t have heavy penalties for banking secrecy. Getting someone`s bank account details is the first step. This is a lot easier than you think. All it takes is for someone to pay you with a cheque and you have ready access to their bank account information. The second step is to take these account details to a branch of that bank other than the one the account is actually held in. For the last step, fill out a deposit for $10.00, submit it to the teller and then ask for `your` balance.
Invading someone`s privacy, even your own, really is that easy. So that your money and identity are protected, offshore banks have privacy and secrecy tenets to help accomplish this.
Now for the last of the 3Ps in banking offshore – protection. Protection of your assets is the third reason that investing offshore is a banking solution that is very popular. It is nearly impossible to get the account balance of a bank account in an offshore jurisdiction, unlike the ease with which it can be done for a bank account such as the example used above. Jail terms and heavy fines can be imposed for disclosing any information regarding bank accounts in most jurisdictions with offshore banks.
A word of caution, though: Even though it is common to conduct onshore banking this way, if you intend to do your offshore banking on the Internet, you should be aware that your hard drive will store all of your information.
As no other account can, banking offshore provides these three assets: profit, privacy, and protection. It is entirely up to you how you use this information.
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5 Steps To Opening An Offshore Bank Account
If you`re investing for the first time in an offshore account, it can be confusing. You must choose a reputable bank and handle the ins and outs of offshore accounting procedures. There are no first time investing procedures to follow. However, the following five simple steps will give you the information you need.
15 Things You Should Know About Offshore Fund Managers
Do you know the person managing your money? If you don`t, you need to; knowing who is managing your fund is as important as knowing where your money is. It`s absolutely essential, and you should not hesitate to ask as many questions as you wish so that you`re sure you`re comfortable with where your money is being invested.
Who Else Wants Better Returns With An Offshore Account
National boundaries have usually not dissuaded investors who want to most effectively use their investment capital. In fact, those with expertise in offshore investing state that about 50% or a little more of your investment portfolio should be based in foreign markets. If you really want your money to work for you, you`ll eventually see that you need to invest in foreign markets to get above average returns.
