Offshore Bank Account Query

[Joey32]

Hello everybody,

I have a very specific and urgent query relating to my personal circumstances, and I'd like some basic professional advice before joining the group mentor access program.

I am an Australian resident, with a friend overseas who has given me exclusive access to his bank account in the British Virgin Islands (he has since switched jurisdictions, and no longer has any need for it). The account is a business account, however it has not been legitimately incorporated, and therefore is not a corporate account.

Ideally I would like to start using this account to hold my personal funds, while minimising my tax at the same time (preferably in a smart and legal way). However: I do not already own or operate a company or business. So if I just started redirecting my income into the BVI account, the Australian authorities might think I was a tax cheat., and investigate me.


Questions...

1 Do I need to incorporate this bank account?;
2 If so, how? Could I incorporate it by buying an "off-the-shelf" company, attaching this company to the bank account, and have somebody else run it for me?;
3 What problems or complications might be involved in doing this?

I shall continue conducting my own research, although any advice or suggestions in the meantime would be hugely appreciated!

Cheers.

 

[Joey32]

(P.S. The BVI bank account is obviously still registered in my friend's name).

 

[negon]

Personally I would not touch this for two reasons!

1) If you start transfering money to the account as it is you run the ris kthat the bank will notice the beginning activity on the account and monitor it. Once there are X amount in the account they will request new and up to date documents for the account holder. If they for any reason find out that you as a 3rd party have "rented" his account they will freeze and close it!

2) you are totally right if you start sending money as a person to this account from Australia you will get on your authorities watch list at the leatest next year! Furthermore your friend will get asked a lot of question why there is coming money from only one person (you) to this account after it has been unused for some time.

It is just asking for troubles. Well I'm aware of that it looks to be a great opportunity and you can be lucky enough that no one notice it. But depending on luck in such matters is most often not what you want!

To do what you are looking for is not possible (at least not advisable) any longer since all the reporting and exchange of information started for s few years ago and comes into full force this and next year. What you are looking for can only be accomplished by using a digitial currency / cryptocurrency provider (with more detailed information to be found in the mentor group) and still then you have to be carefully.

 

[Joey32]

Auric, thank you so much for this advice! I have only been reading this forum for a few days, and it's clear to me your knowledge in this field is very impressive.

In that case, I shall leave this account well alone, and join the group mentor program instead to seek out "wiser" alternatives (perhaps by utilising the dark docs).

It's all a great learning process

 

[Joey32]

I'm sure you'll agree with me that it's far better to get it right from the start, than "wing it" like an idiot and run into a truckload of problems later. Fools rush in where angels fear to tread...

 

[negon]

I'm sure you'll agree with me that it's far better to get it right from the start, than "wing it" like an idiot and run into a truckload of problems later. Fools rush in where angels fear to tread...

I totally agree with you You can also wait a little and check if others chimp in, sometimes we get some really got input here from other's that I believe are professionals

Generally speaking it is always wise to do proper research before you rush to anything like this. It's not like to buy a book or look for SEO advise

 

[cutmetwo]

I was wondering if an trust account or account opened to a foundation say Panama or Seychelles would be risky? I have seen a few people here mention it a few times but don't see how it works.

 

[JohnLocke]

Welcome aboard OP Thanks for joining the Mentor Group.

As @auric already have been so nice to tell you it's not a good idea to use your friends bank account because of the mentioned reasons! I would also suggest you to look into your own account either offshore or onshore. To transfer money today to a bank account is subject for reporting as you already may have found out.

However, as you may read from some of the threads in the Cyprus bank accunt opening forums, you can hold a corporate Cyprus account and avoid to get reported as long as the amounts lower then 250k USD. You may see this thread, CRS and Cyprus bank accounts

That said, there is no one other then the Governments around the globe that are able to tell you if your transactions are going to be reported or not. Believing the banks telling the truth would be naive.

After all and as basic this is, the best solution you can find to to achieve your goals is what you find there in the mentor group forums. Setting up a Foundation or Trust may in certain cases be overkill! Of course it depends on what budget you have and what figures we talk.

 

[dirtyharry]

2 If so, how? Could I incorporate it by buying an "off-the-shelf" company, attaching this company to the bank account, and have somebody else run it for me?;

Once you have the incorporation documents you send the whole crap to the bank including your CV, business description, passport, utility bill and what else it requires after 4 - 5 weeks they will get back to you with either an approval or decline or even more questions.

There is really nothing difficult in it. You agent may even take care of collecting all the required documents!

 

[negon]

The problem can be that your personal information is revealed to the bank and that's is a privacy issue! The best banks protecting their clients privacy still remain at Switzerland and Cyprus!

 

[Richmond]

The problem can be that your personal information is revealed to the bank and that's is a privacy issue! The best banks protecting their clients privacy still remain at Switzerland and Cyprus!

Switzerland and Cyprus for privacy?
I hope you're kidding.

 

[Joey32]

Switzerland and Cyprus for privacy?
I hope you're kidding.

Let's get one thing straight here, for everyone's peace of mind...

Since the Panama Papers scandal, nothing is a sure thing anymore. There are no guarantees. However, you still want as much privacy AS POSSIBLE. Personally, I would at least prefer to be partly (or mostly) shrouded in secrecy, than completely left out in the open. Think of it as "hedging your bets"; or leveraging your own position.

If you read between the lines, what Auric is really saying is that there are certain jurisdictions that will always be more flexible & reliable than others (in most cases). He has referenced Cyprus and Switzerland, and he's right. They remain two of the best.

Auric is giving you an excellent starting point based on his own experience - and he has a lot of experience. But you still need to perform your own research. Also, everything will depend on what country you are based in, and what the nature of your business is.

 

[Richmond]

Banking secrecy is dead in Europe, also in Luxemburg, Switzerland, San Marin and Cyprus.
Austria has banking secrecy, but valid for residents.

 

[negon]

Banking secrecy is dead in Europe, also in Luxemburg, Switzerland, San Marin and Cyprus.
Austria has banking secrecy, but valid for residents.

I wonder, do you actually research topics and your options or you only read the Internet and re post the news? Sorry to say so, but most of your replies are simply to short to make any sense!

That said, I agree with you that we need to consider the fact that the banks don't speak the truth about what is going on behind the scene Global Forum on Transparency and Exchange of Information for Tax Purposes - Organisation for Economic Co-operation and Development

That's why we are going to rethink our options

PS: thanks @Joey32

 

[Richmond]

I wonder, do you actually research topics and your options or you only read the Internet and re post the news? Sorry to say so, but most of your replies are simply to short to make any sense!

That said, I agree with you that we need to consider the fact that the banks don't speak the truth about what is going on behind the scene Global Forum on Transparency and Exchange of Information for Tax Purposes - Organisation for Economic Co-operation and Development

That's why we are going to rethink our options

PS: thanks @Joey32

I'm sorry Auric, but I have not to sell nothing and my answers have NO commercial interest.
Just read European Directive 2014/107/EU.
This Directive puts an end to banking secrecy in Europe.
I have banking secrecy. Why? Because I'm resident in Austria.

 

[negon]

Okay cool, thanks for clarification. Your post just looked similar to another guy here on the forum that actually had commercial interest but also said he didn't.. sorry for the confusion.

I will start reading this directive you mentioned and see how they comply to the statement I got from the banks in Cyprus and the a other guy got from a German bank there must be something about the story.

 

[Richmond]

Okay cool, thanks for clarification. Your post just looked similar to another guy here on the forum that actually had commercial interest but also said he didn't.. sorry for the confusion.

I will start reading this directive you mentioned and see how they comply to the statement I got from the banks in Cyprus and the a other guy got from a German bank there must be something about the story.

In addition to European Directive there is also CRS as a death blow.

 

[negon]

In addition to European Directive there is also CRS as a death blow.

Correct, we already have it here CRS and Cyprus bank accounts

 

[Richmond]

Correct, we already have it here CRS and Cyprus bank accounts

It's true you're right.
I have read forum for One year before registering.