What's wrong with offshore?


A

apennysaved

I understand the importance of debate but I'm suprised to find more
people aren't opening offshore accounts. I worked with my tax lawyer
within the system and these guys at www.ncbermuda.com and now I pay
only when I re-patriate my income or earn more than 100k or something.
Have I been deluded becuase everyone assures me I'm doing the right
thing.
 
P

Paul Maffia

As a US Citizen or Resident you are liable for the tax on that income when
it is earned, no matter where you earned it and not when you repatriate it.
You have been deluded and probably paid a good penny for the bad advice. And
when you get caught you will at the very least pay series penalties and
interest, possibly even enjoy an extended vacation at one of the many Club
Feds around the country.
 
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P

Paul Thomas, CPA

Paul Maffia said:
As a US Citizen or Resident you are liable for the tax on that income when
it is earned, no matter where you earned it and not when you repatriate
it. You have been deluded and probably paid a good penny for the bad
advice. And when you get caught you will at the very least pay series
penalties and interest, possibly even enjoy an extended vacation at one of
the many Club Feds around the country.




I believe if you were to form an off-shore corporation (not a US based
corporation) then corporate profits would not be taxed to the US shareholder
untill paid out as dividends. Now, your foreign corporation may owe taxes
to the country you incorporate in, and / or operate in; and the corporate
assets may be subject to repatriation by that foreign government (Venezuela
would be one to stay out of); but if that corporation didn't pay dividends,
it's not going to be income to you.

Of course, there are huge legal and other issues to be wary of.
 
P

Paul Maffia

True, Paul, but he said he opened an offshore account, not that he created
an offshore company.
 
A

apennysaved

I wasn't spaming anything, everheard of not being so skeptical. Yeah it
was a BVI company that we formed then we don't pay dividends, yet. But
if I'm not ordinarily resident in the US and am a foreign national than
I don't pay anything, clear. But some years I qualify as a resident
green card holder, if I say pay dividends to a foreign trust do I have
to pay taxes if I use that money to pay my personal bills outside of
the US? Should I shut down all my personal anything and register
everything including my phone service etc. in the name of a foreign
trust or am I going crazy overboard trying to not pay taxes as my CA
keeps telling me.
 
A

apennysaved

Plus you need much more than a bank account that is the part a monkey
could do not to mention some years I qualify as an EU resident which
organizations like HSBC are ill equipped to handle they defer to their
high priced tax advisors and internal compliance, too much work, a
lumbering giant. Multi-national travellers need much more tailored
advice, HSBC Private Bank does that but again have to maintain millions
of dollars in house (and their funds are below average considering all
the new hedge funds out there), and get charged huge fees and
disbursements. Remember I'm trying to save money not piss it away.
 
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J

Jim Kingdon

I qualify as an EU resident which organizations like HSBC are ill
equipped to handle they defer to their high priced tax advisors and
internal compliance, too much work, a lumbering giant.
Ah, thanks for the advice. Clearly you have more experience with this
than I.

(And sorry for assuming you were a drive-by poster who would never be
seen reading this group. Maybe I can lose that skepticism of mine if
there are more like you than the other kind on this group :)).
 

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