There seems to be a growing interest by U.S. taxpayers in using
offshore trusts and foreign corporations (or international business
companies) to save taxes. There are also a growing number of promoters
and just plain crooks who are eager to take your money by selling you a
"product" or a packaged service that is alleged to help you save taxes.
With few exceptions, these offshore structures won't stand up to a
serious inquiry by the IRS.
The US citizen has three choices. We can engage in tax
evasion and spend the rest of our life looking over our shoulder for
the long arm of the IRS. Or, we can just pay the taxes that the US
requires and complain about it. The third choice is to take advantage
of every opportunity that is permitted by the tax law - but without
engaging in a felony that could result in spending some time in
jail.
In the December, 1995 issue of my asset protection
newsletter, I offered a challenge to anyone who can provide me with
convincing proof that there are legal ways to save taxes with offshore
trusts or corporations. In response to that challenge, one attorney has
shown me that it is (for now) possible to establish an offshore trust
that becomes a foreign entity after the death of the grantor. The
benefit of this rule is that the assets are only subject to estate
taxes once.
After issuing that challenge, I proceeded to review
every section of the Internal Revenue Code (IRC) that had anything to
do with anything referred to as "foreign" in the tax code. What I found
are quite a few legal ways to save taxes outside of the U.S.. This
report is a brief survey and explanation of those tactics that are
approved by the tax code.
Because they are sanctioned by the tax code, they are
far safer from attack by the IRS than the methods that are not
sanctioned by some part of the tax law. This report won't deal with the
numerous sections of the tax code that impose restrictions on the use
of offshore trusts, corporations or other devices. For now, I'm only
going to highlight the good news - the offshore tax saving tactics that
are sanctioned by the tax code.
A printed copy of this report is available for $10.
The complete report is also available on our paid subscriber's
restricted web site at no extra cost to subscribers.
How to order
