Economics-and-finance

Since the French Revolution, the wealthy have moved money offshore to safeguard their assets, to make a decent return, and to avoid paying taxes on their gains. There are currently some 218 jurisdictions that offer these and other special incentives to foreign investors, and many are among the best places on Earth to vacation. For example, the Caymans, three lush islands 475 miles from Miami, do not levy taxes on personal or corporate income, capital gains or your overall wealth. On top of that, the islands' financial-privacy laws can protect your assets from creditors and people who might sue you. It is indeed no wonder why the main street of this tropical paradise is lined with branches of banks from New York City, Amsterdam and Geneva.

The US government frowns on you relocating your money offshore. If everyone could invest abroad and in secrecy and never pay a dime in taxes the federal government would go broke even faster than it already is doing. It is in no way illegal to take your money offshore, even though the government has done its part to try to persuade you to not do so. Although several reporting requirements have been instituted by the government for those who do go offshore, several excellent strategies have been developed to minimize or eliminate them, and for that matter to also minimize any tax effects that such a move might entail.

Furthermore, US citizens are generally required to report income from offshore investments and to pay taxes on this income. Once again, numerous strategies have been developed to eliminate these reporting requirements so that the government will not tax your earnings at a higher rate than if your money had never left home. It is important to understand that this excessive taxation is the government's way to discourage citizens from moving funds offshore because when you move your money offshore, the government loses control.

Some strategies include elements such as chartering your own foreign bank, insurance company, corporation, or establishing a foundation or trust. An offshore corporation, bank, or insurance company is as much a legal entity as you are.

This book is especially helpful for CPA's that want to enter the field of fraud detection. This should be required reading for auditors.