OFFSHORE FINANCE - TAX HAVENS

These are not what they used to be. With the international community putting horrendous pressure on such countries to try to prevent money laundering and tax evasion, there is really very little ultimate secrecy left. There is still enough if one keeps their head down and doesn't attract any attention - and stays legal.

For North Americans it is all but impossible to legally take advantage of a tax haven because compliance with the incomes tax acts is impossible except for the very rich who can afford the costs. Anyone who tells you differently is conning you for fees.

However evasion is still prevalent - we discourage it as the penalties are too high to warrant the risk. There are legitimate steps for active businesses in North America to at least defer taxes. Although not eliminating taxes, delay certainly permits the making of greater income due to that delay.

People from Europe and the rest of the world still have opportunities.

And everyone can use the asset protection side of offshore finance. Such a trust means that if one is sued, (lawyer, doctor, dentist, corporate director etc.) the assets in the trust are protected from creditors.

No matter what country you are from, be certain that the banks in the offshore jurisdiction you choose are able to provide accounts in euros. Bank in euros and do all transactions in euros. US$ transactions all have to be cleared through the USA while Euros do not. With the interference of the USA in international transactions at unexpected times, one does not need the extra worry of funds being stopped. Also make certain that the spread between ‘buy’ and ‘sell’ for the euro is reasonable. Banks in the jurisdiction of the ECCB must follow the ECCB foreign exchange spread rates (unless it is an offshore bank in the offshore jurisdiction) and for the euro these rate spreads are outrageously wide.

IBC’s (International Business Company) are still a good vehicle to employ when transacting business in the offshore world. But regular companies can be just as effective, depending on the jurisdiction.