Avoid paying taxes with an Offshore Company

[italkcash]

It is said that 60% of all wealth in the world is currently held in offshore destinations such as BVI, Cayman Islands and Panama. Hedge Funds, large corporations avoiding tax are holding all their excess savings there for hard times and simply because they are not taxed by anyone for holding large sums of money in an Offshore Company.

That said, anyone operating in multiple countries in their right mind would setup an offshore company in a jurisdiction that fits their needs. For instance Panama has a high security regarding the anonymity of their foreign countries. Panama's law does not allow agents to give out information about foreign corporations, as they can risk both jail and huge fines.

[eyes4]

Eek!
Perfectly worded dangle for a federal sting operation.

The thread name alone ought to attract IRS and FBI agents salivating to scoop up the first dim-wits to confuse "Avoid Paying Taxes" with "Evade Paying Taxes" and attempt something stupid.

Perhaps adding "Legally Avoid..." or add to the post whether offshore companies and their accounts need to be reported even though they will not be taxed, etc. "Un-reported" accounts and income are sometimes treated as attempts at evasion.

The U.S. is the biggest tax haven in the world. The current hullabaloo in congress over Switzerland and Liechtenstein accounts being used to evade taxes and stonewall countries of origin is bald hypocrisy.

To avoid confusion and stave off inquiries by the less-than-scrupulous, please provide examples, evidence or more specific information about the processes and systems mentioned for Panama.

I agree setting up an off shore company would show diligence by those in charge of treasury management, I just think a specific declaration should be made every once in a while to define the common terms sometimes confused by readers categorized as unsophisticated.

eyes4

[DianaR]

Don't even take this seriously. The USA is in the process of eliminating the advantages mentioned in the original post, here, and any maneuver like this will definitely have the treasury department watching your every move..

[mandiees]

Wow - this is by far the worst "advice" post I have seen on here! Terrible. Stay Away!!

[DianaR]

Are there any situations where you might have to set up a company in another country to do business there?

The requirement for local registration would probably be the only situation that wouldn't put you in dutch with the law. Setting up offshore accounts to hide earnings would be an obvious ploy to avoid taxes, but fulfilling the obligations associated with legitimate business may protect you from prosecution ot closer scrutiny.