The legitimacy and legality of going offshore

When it comes to offshore investing or offshore banking, most people are totally in dark regarding the legitimacy and the legality of it all. Going offshore is a hundred percent legal, legitimate and a lot of people from politicians to business people to pop stars and the like opt for it. It is especially beneficial to expatriates, whose investment options are limited by them being foreigners. However, to make it legal, individuals have the legal obligation to report their offshore activities to the relevant government agencies, such as tax authorities.

Basically, it is illegal to evade your tax obligations, lauder money or engage in other criminal activities masquerading as an offshore investor. Offshore investors need to accept and understand that they must report their offshore activities to the relevant government bodies when required to do so or where offshore legal reporting is mandatory. To reduce the reporting needs, offshore trusts, offshore companies and other legal offshore entities are mostly structured in such a way that there are few, if any reporting requirements, though it is dependant on unique personal circumstances.

There are many reasons as to why a person may opt to go offshore. However, the main reason why a person goes offshore, especially when working as an expatriate is to reduce the overall tax burden. Tax evasion is illegal, so irrespective of whether you are going offshore or not, taxes must be paid. One has to file with the legitimate tax authority to get a tax deferral or tax reduction, if they are are seeking a legitimate tax avoidance reason. They also have to follow the laid down tax rules and regulations.

However, whilst you obligated to pay taxes, you are not supposed to pay more than you are obligated. Additionally, every person who pays tax has well documented and provable legal rights that assist them to arrive at the correct tax amount to remit to the tax authorities. All tax payers have to structure their financial affairs in such a way as to conform to their personal tax code, while at the same time minimizing their overall tax liability.

All in all, going offshore is not only legal and legitimate but can also be utilized in such a way as to structure a person’s financial affairs so as to legitimately reduce his or her overall tax burden. However, when going offshore it has to be done right; remember it has to stay within the law. When going offshore, engage the services of offshore specialists. Opt for a specialist who is knowledgeable, efficient and trustworthy, and who has the right legal certifications to support who they say they are. He or she should also have provable previous working experience in the field of their specialization.

Once engaged, the offshore specialist must formulate an appropriate offshore plan that is within the offshore regulations and laws so as to protect the client’s assets. The plan should not have negative tax implications or unpleasant tax consequences. The offshore specialist must be beyond reproach when it comes to dealing with their client’s finances and properties and must never attempt to defraud the creditor’s liabilities.