What are Offshore Taxes? And How Can a Tax Attorney Help?

Tuesday, July 9, 2013
“Offshore” does not refer to the actual physical location of private assets or liabilities, but to temporary locations of networks of legal and pseudo-legal entities and arrangements. Offshore tax havens manage and control private wealth, usually in the interests of those who manage it, supposedly in the interest of any high net worth individuals and business owners, and often in defiance of the interests and laws of multiple national governments. Currently, tax data analysts estimate approximately $21 to $32 trillion is unreported in offshore accounts and shielded from taxation, also known as tax evasion, from various governments.

The term “offshore” conjures up the thought of global elite using whatever means at their disposal to hide their money from governments on beautiful tropical islands, such as the Cayman Islands or Channel Islands. However, this may be misleading since many developed national governments have cracked down and forced many nations, like Switzerland and their famous Swiss banking system, to change their traditional “secretive” banking protections that allow foreigners to evade taxes.

Today, the crackdown of offshore tax accounts is becoming very common globally. Offshore accounts have been conventionally used to hide assets; however, if used to unlawfully hide income or evade taxes due to the U.S. government, there could be a problem with the IRS coming after you.

A good tax attorney can handle issues with offshore tax accounts and help someone charged with tax evasion or some other tax related crime. A tax lawyer would be the best person to provide information about legal tax advantages and tax regulations. A specialized tax attorney has experience dealing with offshore companies and businesses that and can help understand the legal tax flexibilities and advantages that are allowed for these offshore accounts. It’s best to consult with a qualified tax attorney to find out what legal benefits these accounts can offer.