Monday, June 25, 2007

Offshore idiots


This week newspapers in the UK are assisting the UK government in their SCARE campaign against offshore accounts. Of course... they are NOT TELLING YOU all the facts.

As I have told you in my previous blogs there is a HUGE difference in setting up accounts offshore as a person and setting it up as a company.

The story below, from one of the UK newspapers are telling you their story.

Let ME teach you how to do it, and why you should not be afraid to set up offshore companies or accounts.

The first rule

Do not ever set up an offshore account outside your country in your own name!

The second rule

Do not ever speak with a UK accountant about offshore tax planning!

So what will you do to act correctly? Here are my top 10 Tips!

Speak to a professional, international tax specialist outside your country that ONLY does this job for a living and are updated on all international rules and bank regulations daily.

Choose a company to work with that has years of experience and are established in the market place. Do not answer a small add that you see in the newspapers....

Remember that it is your right to do your international taxplanning and do what ever is needed to not pay more taxes than you have to, legally.

Choose a durestiction that is far out of the control of the government in your country.
Jersey and BVI would not be good choices if you are in the UK!
Cyprus and Seychelles would be the ideal solution for you.

Create a clear vision of what you would like to achieve in the next 5 financial years in your life
and your business to help the consultant help you prepare for such a plan.

Ensure that your bank accounts in the country that you are living in is never overdrafted as you would need a bank reference letter from your bank to establish a company offshore even though the account is not in your name, you would be a signatory and this requires a due diligence.

When you decide to set up a company, do not use a name of the company that will be related to your name in any way. Do not call it your last name or for name.

When you want to have an offshore account you must FIRST set up an offshore company, then set up the bank account. This way the account will not be in your name, but the money in the account will belong to the company. This will secure your identity but still give you full access.

Choose a bank that will assist you with the correct internet and card solutions

Do not speak to anybody about that this company is yours.
Especially not your accountant.

I will be happy to assist you in any way I can so feel free to contact me on

Now, here is the scare story that you will NOT ever experience when you use us to set you up correctly!

340,000 offshore account holders miss tax deadlineBy Harry Wallop, Consumer Affairs CorrespondentLast Updated: 2:51am BST 23/06/2007

More than 340,000 people face the prospect of criminal prosecutions after failing to declare unpaid tax on offshore bank accounts to the taxman, it emerged yesterday.
The possible prosecutions follow a major crackdown by the HM Revenue & Customs on individuals who held overseas bank accounts and failed to declare tax to the British taxman.
The crackdown has identified about 400,000 people, from owners of holiday homes overseas to sophisticated City investors, who have offshore bank accounts and are not paying the right amount of tax on any interest earned from that account.

advertisementPaul Franklin, a spokesman for HMRC, said: "There used to be a general belief amongst many people that if you earned the money overseas, you didn't need to declare it.
"That's just not the case."
The tax authorities launched an amnesty earlier this year to encourage people to come forward and pay the estimated £1.5 billion shortfall.

The deadline for the end of the amnesty was midnight last night, but by yesterday evening just 56,000 of the 400,000 people identified by HMRC had come forward.
Those that did make the deadline have to pay their unpaid tax, plus interest. They also face a fine equating to 10 per cent of their unpaid tax.

Yesterday 180 of the 700 staff at the Revenue's call centre in Dundee were dedicated to answering requests for the HMRC's 44-page booklet spelling out what taxpayers have to do.
Though there was a late surge of people calling the helpline the great majority of the 400,000 failed to come forward.

These people now face paying not only their unpaid tax, but also a penalty of up to 100 per cent of that amount.

More importantly, they face criminal prosecutions.
"In serious cases, you can go to jail for this," said Mr Franklin.

"There is little excuse not to have declared your offshore tax."

He insisted that HMRC was very happy with the number of people confessing to tax shortfalls, saying that many of the particularly serious offenders were the ones that had come forward.

"It's the first time we've ever conducted an amnesty of this kind, and we're very pleased with how it went," he said.

1 comment:

Irene M. said...

If you keep your merchant accounts offshore, you will not be able to access small business loans as well as you would be able to with domestic banking properties. If funding is not an issue for you, then offshore is the best way to go, especially for high-risk merchants.