It is important that, however
Draconian the laws of your home state may appear to be, you
remain within the law.
It is this and this alone,
that differentiates between Tax Avoidance, which is perfectly
legal, and Tax Evasion which is not. Most States have a fairly
relaxed attitude to those who wish to shelter their assets
elsewhere than in their home country. Unfortunately the United
States is not among these and exerts its influence on the
affairs of its citizens wherever they may choose to place
You Have Been Warned - Fraudulent
Before you even contemplate moving your assets offshore, you
should consider the implications of The Fraudulent Dispositions
Act. To avoid your creditors by hiding assets is illegal and
an IBC will not protect you from their wrath! This is a criminal
offence and the law provides for the veil of secrecy to be
swept away in such cases. If you are already embroiled in
such a case it is too late. If, on the other hand, no such
action has been instigated, swift action may save you. Above
all, tell your offshore provider, frankly, of your situation
and follow his advice.
You and the Tax-Man.
The U.S. authorities require a statement from their citizens
to the effect that they have no controlling interest or similar
influence on an offshore account or company. If a controlling
interest is declared, then tax will be payable on interest
or profits produced by the account or company.