Offshore Investing – Why Is It Underutilised?
There are many stigmas attached to the ideas of international, or offshore corporate bank accounts, as well as offshore companies. Basically, this refers to the practice of investing assets or setting up a company in a jurisdiction other than your place of residence, hence the term ‘offshore’. The truth is that offshore banking and offshore company formation are legitimate strategies if done correctly in respect to the laws of the investment jurisdiction and laws of person’s, or company’s, resident jurisdiction.
Unfortunately what most people see are stories in the media about cases in which these financial tools have been misused for things such as tax evasion and money laundering, and so the result is a perception that these strategies are not an option. Without international markets, the majority of businesses today would not exist. Globalisation and technology means international business operations are not just for large multinational companies. Entrepreneurs and small business can just as easily take advantage of offshore opportunities to maximise efficiencies.
Continue reading more about some of the reasons why investing offshore is often underutilized.....
Healy Consultants blog
The Fight Against Improper Use Of Offshore Banking
The United States Internal Revenue Service (IRS) is again starting a ‘voluntary disclosure program’ intended to reveal hidden offshore bank accounts and assets. Those who chose to participate in the program will be asked to pay as much as 27.5% in taxes. Interesting that the tax rate has increased from 22.5% in 2009 to 25% in 2011 and now the 27.5%.
On the previous occasions, the program yielded US$3.9 billion and US$1 billion, respectively, with more than 33,000 disclosures being made.
The program is part of the IRS’s ongoing efforts to reduce and prevent tax evasion. The government agency has also prosecuted clients of banks and financial institutions such as UBS and HSBC, and charged bankers and advisors who helped clients conceal their assets.
This program of fighting tax evasion is not new and is also a goal of the Organisation for Economic Cooperation and Development (OECD). The OECD promotes policies aimed at being universally recognized and implemented globally and hence contribute to improvements in fairness and social wellbeing of people around the world.
One such policy is related to the disclosure of financial and bank account information. The OECD has been successful in encouraging jurisdictions around the world to agree to implement the internationally recognized guidelines for disclosure of information related to financial accounts. Due to their efforts, there are now no jurisdictions on the OECD ‘black list’ that once included a number of traditional tax haven markets.
Despite the publicity gained through such initiatives by the OECD and the US government, illegal activity via the use of offshore banking and offshore companies is few and far between. The practice of setting up offshore bank accounts and offshore company registration is not illegal. If structured properly and all laws of the home jurisdiction as well as the jurisdiction where the account/company is set up are followed, offshore investment strategies can be an effective way to grow personal assets and expand business operations.
More information about offshore incorporation and offshore banking can be found on Healy Consultants website. Or send us an email with some details about your business and investments to see how our firm can assist.
Healy Consultants blog
Corporate Banking Options
Many people believe few standard options exist for corporate bank accounts because they are standard tools of the business world. The truth is quite contrary. There are many available options for business managers, owners and even individuals – options that can typically provide better return on profits, asset protection and investment options than they are currently receiving.
A traditional bank account is one opened in the same locality where a company resides. It is common for a new business venture to use a national or local bank where the company resides. But an international bank account is one of many choices available to businesses. International banking, or offshore banking, has been notorious for activities, which undermine its main purpose – to facilitate international business with greater ease. Surprisingly, though, opening offshore bank accounts can sometimes be an easier process and easier to maintain than local accounts.
International corporate bank accounts offer all the banking technology offered by any national bank, such as international wire transfers, online banking and multi-currency accounts. Most banks will also provide clients with offshore credit and debit cards, giving them the flexibility of immediate access to funds, even though they may be thousands of miles away. Typical advantages for offshore corporate accounts include higher interest rates and lower or no-tax obligations. These advantages can far outweigh what a local bank can legally provide.
Continue reading this article, including advantages of corporate banking options......
Healy Consultants blog
Tax Directives Assist Investment Flows to Asia
Bank law changes in the Channel Islands and Isle of Man will affect European resident accounts. The changes take effect in July 2011.
The island nations are accepting and implementing, the European Union Savings Tax directive (ESD), a law which requires EU member states to exchange information regarding customers who have savings in one jurisdiction but live in another. Neither crown-dependent island is obligated to implement the ESD because they are not EU members.
European residents with bank accounts in either jurisdiction, regardless of nationality, will be taxed and subject to having their details released, thereby eliminating the advantages once offered by both banking systems. MORE>>>
Healy Consultants blog
Offshore Banking Trends in 2011
The banking world has seen huge changes over the last three years, and 2011 will continue to manifest the results of these events. Reactions to the economic and financial crises show consumers have less tolerance for risk, governments have less tolerance for bank secrecy, and more business and consumers are moving their money back onshore. But these changes in 2011 will result in increased competition in low tax jurisdictions and more money flowing between continents.
Click to see 'Banking Trends for 2011'>>>