"The Doggy Bone"
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Protect what it yours
The rumors are certainly out there! And the warnings as well! But little or no information whatsoever about the truth of the matters...
It is amazing how much misinformation can be spread - and the Internet is unfortunately a major source. Let me address a couple of issues pertaining to this:
Using false information in order to obtain tax benefits.
Here is a recent story from the newspapers in Vancouver, BC in Canada:
VANCOUVER (CKNW): A West Vancouver builder and his companies have been fined $260,000 for tax evasion. The principal*) and the construction consortium*) pleaded guilty to wilfully evading the payment of federal income taxes.
The scheme involved an offshore bank in the British West Indies, sham loans and phony interest charges that were falsely deducted on tax returns.
Court was told the scheme began in 1986, and the investigation by the Canada Customs and Revenue Agency resulted in civil assessments against Festing and his companies totalling more than $1.2 million.*) Names withheld by editor for privacy protection purposes
I shake my head when I read this kind of thing. Why are those idiots doing their business is such a stupid way? What they obviously are trying to accomplish could have been done without breaking any laws...
There is no need for using sham loans and fake figures. If these people would have established an IBC and run it diligently as the owner of their local operations, there would have been nothing fake and nothing illegal about them deducting interest on real loans from an offshore bank, lease payments to their IBC, loss on sales of equipment to their IBC, invoices of all kinds from their IBC - you name it! This way, they could have cut their taxes legally down to zero - and saved themselves the fine, the hassle, the court costs, and the embarrassment.
Unfortunately, I talk to many people who draw the wrong conclusions from this.
Some try to be "smarter yet" and vehemently hide information from their government, hoping that "things will hold tight". Well, if your are three people to share a "secret", it is no longer a secret. I think we all learned that in Kindergarten. Some adults appear to need to do those lessons over, though… One thing is that you have a legitimate need for (and some rights to) protecting your privacy, but certain things are, by law, not private issues. Tax deductions being one of them. (More about this later in this issue.)
Others blame "offshore" for the misfortune of these crooks and don't even want to touch anything that has to do with doing business Internationally. In the present case, you could just as well draw the conclusion of staying out of the building construction business - or staying away from West Vancouver, since it obviously is populated with criminals.
I mean: please stay calm and cool! Keep things legal. You are not a criminal because you want to do business Internationally, from an offshore base. But you do commit a criminal offense if you fake documents, offshore or not.
And further: it is stupid to use crime to achieve what is obtainable through completely legal means! (My personal opinion - but I will repeat it in front of a judge if need be!)
Trying to hide yourself behind anonymity.
I recently got an invitation to join an "offshore club" that would charge $30 per month for giving me access to some "privileged" information (most of which is for free at our site...). In addition, they would sell an anonymous debit card for $150 to their members! They would guarantee your anonymity, so you would never have to reveal any of the transactions on your debit card.
Sure, very tempting - but still leading you into illegal transactions! Even though you get someone to guarantee your anonymity, you are still the legal owner of that debit card and the account that supports it. This obliges you to report to your government what is going on on that account. There is nothing illegal in setting up such an account and getting such a card, so the vendor is not committing or inviting crime. The problem is that, in order for you to benefit from it, you will have to choose to not disclose it on your tax returns - but in doing so, you are committing fraud. (As you know, fraud is generally not dealt with through a fine, but through jail terms, so it is a very serious matter...). Well, crime is crime - whether or not there are any witnesses.
Again, it is crazy to succumb to this crap. I understand why people are tempted to do it, though - but it is all rooted in lack of information and lack of understanding of what is really going on here...
The difference between it being legal and it being criminal is vested in the ownership. I know, I have preached this so many times, but I will repeat: If you own it, you are liable for it. Period. The only way of avoiding your liability is by not owning it!
Unfortunately, most people make logic by putting
The only legal way out of this dilemma is by doing your business, private as well as corporate, through an Offshore Trust you do not own. This addresses the problem right at its origin and frees you from having to break any laws whatsoever in order to enjoy your financial privacy.
With a PILL Trust, you can get as many debit cards as you want - within reason. Because those cards are related to your Trust and not to you, you can enjoy your anonymity in completely legal freedom! The transactions on those debit cards are none of your government's business, and you have no obligation whatsoever to report what is going on, because those transactions do not relate to a citizen or resident in your country. You don't need to fear that your offshore bank should give in to pressure from the US government's side and let it have access to its records - those records have no mentioning of your name anywhere, so it is technically impossible to accommodate the IRS in such a request! Not to mention that such an act would be a totally unacceptable infringement of another nation's sovereignty...
Well, I think I made my point - enjoy the summer!
PS. HAPPY CANADA DAY on July 1 to all our Canadian subscribers!
"The Doggy Bone" is exclusively sent to people who have expressed an interest in Offshore Trusts and International Business Corporations and the ways such financial entities can be used to protect assets, secure financial privacy, and eliminate tax liability, in full compliance with all relevant laws. An overview of our services is available on our web site at http://asset-protection.info.