Are any income tax advantages available from an offshore structure?
In most cases, there are no income tax advantages which can be achieved by using any type of offshore structure.
Unfortunately, many of the tax shelter promoters who blew up client after client in the 1970’s and early 1980’s are now using the lure of asset protection to attract a new group of victims. We now see a variety of outrageous claims on the Web and in books that offshore trusts, International Business Corporations (IBC’s) or your own offshore bank will save you big money in taxes (and make you millions of dollars). The fact is that these techniques will not produce any legitimate tax savings except under very limited circumstances not applicable to most individuals. As a rule, the income of these entities must be reported on your tax returns. Although an offshore trust and sometimes an IBC can be useful for non-tax asset protection purposes, unless you are willing to commit perjury and tax fraud no tax advantages can be achieved with this structure.
For more information, click here.
|
