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Anyone who has financial success can understand the difficulties associated with managing this nest egg. Having a large income requires larger tax payments which in turn creates more attention from the IRS. If you keep all of your assets in your local jurisdiction your transactions come under the scrutiny of the post 9 /11 anti money laundering system aimed at keeping criminals from integrating illegal revenues into the legitimate banking system. Offshore banking is the utilization of banking services located outside your country of residence. The good news for high income earners looking for a tax break is that there are still several banking centers that offer rock solid banking privacy and protection laws. Having an offshore bank account provides the depositor with financial, legal and tax advantages when the offshore jurisdiction is selected properly. The Bahamas, a former tax haven, now has strict banking laws that allow bank officials to report on their clients to authorities who ask. On the flip side of the coin the Republic of Panama has total banking secrecy laws in place in spite of pressures from the IMF and US government asking them to report any suspicious activity to local authorities. Banking secrecy laws in Panama protect clients through the use of fines, employment termination and even imprisonment if an official is caught disclosing client information. Panama also offers clients uninhibited asset growth by providing services which require little or no capital gains or income tax. Putting your money in a Panamanian bank is a great way to grow a nest egg tax free. Panama bank accounts can be set up for as little as $695USD and come with all of the expected services one would expect such as online banking, ATM cards and checks. Sometimes even when banking in countries with solid asset protection laws clients can run into privacy trouble. Take the Cayman Islands as an example. The Cayman Islands has laws that send bank officials to jail for disclosing information to the IMF, CIA or Treasury Department. In recent news a bank owner from the Cayman Islands named John Masterson allegedly reported over 1 year worth of bank records to the United States government that got a lot of US clients into big trouble. If the laws of the Cayman Islands were strictly enforced, Mr. Masterson would be in jail for the rest of his life. Mr. Masterson currently lives free so offshore banking clients beware.
Article Source: http://www.rightarticle.com
Learn more about how to setup a offshore bank account or offshore asset protection at the OffshoreLegal.org website.
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