Does Your Bank Specialize In Offshore Banking?

To begin with, let’s define what ‘Offshore’ means.

‘Offshore’ simply means not in the country your current country of residence. So if you live in the UK but work in Spain, you would be termed to be ‘offshore’ in Spain and not in the UK.

Now there are several jurisdictions in the world, many of them right here in the UK, that offer a form of offshore banking that is quite similar in some ways to that offered by, say, a company established in the Channel Islands or ferrous States like Switzerland.

The difference is that whilst the offshore bank may be based somewhere in the Channel Islands, their bank account will usually be a transferred unchangeable interest in a bank account in the UK. So this means that if yours were to become bankrupt, for example, your interest would simply NOT be recoverable.

This is important to stress because many companies and businessmen establish ‘offshore’ bank accounts in various tax havens and onshore-offshore Finance Recreatures that open up a whole new array of possibilities.

In addition to enhanced security, there is also usually a degree of anonymity as the accounts are usually in a highly strategic location.

Many of these locations are in the low tax regions of Europe, Offshore Finance Recreatures or processed by offshore companies that have a UK ‘offshore presence’.

If the company pays no tax it is almost certain that the taxes assigned would be lower than in the UK, but that is the whole point – so what if you were a UK resident?

In common with the rest of Europe, you would be entitled to claim all the allowed benefits of being a foreign resident for tax purposes but you would be subject to penalties for failing to pay tax at the correct rate. These penalties are quite high and relate to the amounts which are due and can be quite dramatically high.

If, for example, you were to pay £150,000 in tax at the rate of 40% in the UK but only pay £80,000 because you are a foreign resident, the £80,000 will likely be collected in the UK.

This is not the only scenario. There may be no tax or even tax at all. There may be perhaps even no reporting of the owners of the capital of the company or the patterns of its profits and losses.

One other thing you may not understand about tax havens is that the ones we are most familiar with, such as the ones we all think of like Switzerland or the Cayman Islands, are known as tax havens because of their tax status.

Now let us consider another kind of offshore finance – and this is one source of finance that is not only legal but very desirable.

This kind of offshore finance is based on the principle of protecting yourself against excessive and clearly defined ‘Secondary Costs’.

It has a very important legal basis and grounding in fact. The British shareholders of a company set up offshore are protected against aggressive tax collectors and interest and searches.

If you want to protect against these kinds of increasingly harassed attacks and look at the advantages that this kind of offshore finance has to offer, then it pays to know the facts and make sure you are going to be protected.

In doing offshore finance for a company you will do well to draw up a high-quality 78-page lawyerly study that you can present to your company.

Please note that at no time should a company or individual director of a company make any representations or commitments in relation to companies or individuals with itself or its associates in relation to offshore finance.

Do not be put off by the fact that you are asked to obtain the certificate of capacity and evidence or advice.

You have the right to see it and all the supporting documentation and there are just two basic requirements – that you take copies of the documents and sign an agreement with the lawyer for the release of such documents and copies.

After signing, you need to obtain from the bank obtain a copy of your company’s balance sheet and balance of payments as well as the annual filings, and pay what is required.

You only need to use a reputable offshore finance law firm that has an excellent track record and is free from any litigation with any of its clients.

Remember, what you are doing is perfectly legitimate and can be a highly profitable investment.