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Over the years, offshore banking has earned a certain reputation with many U.S. citizens buying into the concept that if you put your money in other places in other countries, then you are not on the up and up. But, if you ask a tax lawyer who is a former IRS attorney, he or she will likely be able to adjust your thinking.
Expanding Horizons
With that in mind, these knowledgeable professionals will likely warn you that employing offshore accounts in the most talked about places in or near the Caribbean, like the Bahamas and the Cayman Islands, is probably not the wisest decision.
 
Indeed, these “traditional” tax havens, along with others such as the Isle of Man, are no longer the great tax havens they were once purported to be.
 
So why is that? Possibly because the Organization for Economic Development (OEC) has put pressure on these particular destinations to stop them from working with America citizens when it comes to offshore accounts. In fact, the OEC tends to call this practice into question in these places due to perceived trade practices that produce harm and not good.
Where’s The Money
But, as discussed above, offshore banking is feasible and even a bright idea for certain folks looking for ways to invest. In fact, the practice is an acceptable form of banking in a large number of other places. Former IRS tax attorneys will likely suggest opening offshore accounts in all kinds of nations, like Taiwan, Brazil, Bahrain and Hong Kong.
 
But that is only a partial list. Add to that a member of the European Union. This is considered a good choice by the experts as long as you are not a resident of any one of these countries.
 
With all this in mind, who should consider off shore banking? Practically anyone who has money to invest, insists the professionals. With the right bank references in the United States, you can easily invest a couple of grand in exchange for interest free banking devoid of local taxation.
Privacy Counts
You will also be privy to privacy when it comes to your banking practices and, for the most part, excellent customer service. Those with offshore accounts are able to take care of banking matters via electronic means, and are often be able to use a bank card like Visa to take care of transactions. However, you may have to visit the country of choice at least once in order to establish the account.
Follow The Money
Tax lawyers in the know will likely advise a journey to the country your money is being held, even if the above stipulation is not in place. After all, it’s always wise to know where your money is going, even if that place is only temporary.
By Ellen Chadwick
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