Where Offshore Tax Evaders Live And Bank

[protain]

Congress is on a roll, trying to track down hidden offshore accounts, and the latest news is a report that shows which states have the most taxpayers disclosing such accounts (California is No. 1), and where they are located (Switzerland is tops). All told, taxpayers in at least 45 states and the District of Columbia reported accounts in 68 countries and territories.


The new U.S. Government Accountability Office report: “IRS’s Offshore Voluntary Disclosure Program: 2009 Participation by State and Location of Foreign Bank Accounts,” is a supplement to its March 2013 report, “Offshore Tax Evasion: IRS Has Collected Billions of Dollars, but May be Missing Continued Evasion.”


There is nothing illegal about keeping money offshore, but you have to report it on a form called the Foreign Bank and Financial Account (FBAR) form–if the account value is $10,000 or more–and pay taxes on earnings. For those ready to fess up, the IRS held the 2009 voluntary disclosure program, followed by one in 2011, and another that opened in 2012 and is still reeling in taxpayers. The programs offer incentives for taxpayers to disclose their offshore accounts and pay delinquent taxes, interest and stiff penalties—to avoid criminal prosecution.


source: taxes


I thought with all the discussion we had here on the forum then this article may be of interest for some of the many forum users here who seek and find it challenging to live and find a offshore jurisdiction.

 

[protain]

[h=1]Where to live if you want to minimise tax[/h] Ultimately the best way to lower your tax bill and preserve your wealth is by moving to a low tax jurisdiction, or tax haven. By living as a UK resident you are subject to tax in the following forms: income tax on UK income, income tax on worldwide income, capital gains tax and inheritance tax.


By relocating to a tax haven you will be able to eschew these taxes, in some cases you will pay an absolute minimum amount of tax. Let’s take a brief look at some popular destinations and their tax levels.


The Bahamas

The jewel of the lavishly decorated Caribbean crown, The Bahamas are a nil-tax haven which means you won’t have to pay any of the tax that you would have back home. Many places boast of having low taxes but few can match The Bahamas where there isn’t even any sales tax! Of course being a Caribbean island, The Bahamas are also a stunningly beautiful place to live. It has easy accessibility to the rest of the world with good transport links and is definitely a destination to consider.


Jersey


Jersey, and the rest of The Channel Islands, is an attractive location for the British expat as they are fairly close to the UK and come with some nice tax benefits. There is no capital gains tax nor is there inheritance tax or sales tax. Income tax is payable at a set rate of 20 percent.


United Arab Emirates


The land of Sheikhs and oil is another nil-tax haven that could help your wealth soar to Dubai sky-scraper levels. Here you can prosper with no income tax, no sales tax, no inheritance tax and no capital gains tax. The downside is that life in the UAE will be very different to what you are accustomed to in the west.


Monaco

Monaco is one of the more famous and decadent tax havens and is found along the glittering French Riviera. There is no income tax and no capital gains tax and whilst there is business profits tax this is unlikely to affect the individual expat.


British Virgin Islands


In terms of tax benefits, the British Virgin Islands frees you from the financial shackles of income tax, sales tax, inheritance tax, corporation tax and capital gains. However there are property taxes and also a payroll tax making it less attractive for those still seeking work and perhaps more appealing to those attempting to escape inheritance or capital gains tax.


Bermuda


Beautiful Bermuda is another wonderful place to move to. Here you can shop to your heart’s content free from sales tax. You may work with a smile on your face as you are safe in the knowledge that your income is also free from tax.


Switzerland


In Switzerland there is actually a fairly high rate of income tax, it differs from district to district, and can reach up to 35 percent. People are also taxed on their worldwide income. However for wealthy individuals there is an option that reduces tax bills considerably known as the “fiscal deal”. This deal gives the recipient tax breaks and also a residency permit but you will be required to have a fair amount of money already in your bank account, around £1 million. You will not be eligible for the fiscal deal if you plan on running a business in Switzerland.


To find out more about these and other tax havens please refer to our offshore tax section, or to our city guides for destination specific information.

 

[poulaCo]

Some good information, lots of reading, seems BVI and Bermuda are some of the better places right after Switzerland

 

[Spinat]

Good reading, I lived for a few years in Switzerland / Zurich and paid only 10% personal income tax, it was okay.

 

[poulaCo]

How is it to live in Switzerland? how are people there?

 

[Spinat]

How is it to live in Switzerland? how are people there?

They are great people there, most I kiked the Italien people there. Today expats are going to Zug in Switzerland where they have the lowest tax of only 5% as I remember.

 

[poulaCo]

They are great people there, most I kiked the Italien people there. Today expats are going to Zug in Switzerland where they have the lowest tax of only 5% as I remember.

Any other offshore country where it is better and cheaper to live compared to Swiss?

 

[protain]

I'm researching this topic and have found a lot of information here and there, I will put this all together and post a shorten version of it which will sum all up.

 

[JohnLocke]

Great share of information, if you have similar information or articles feel free to post them in this thread.

 

[protain]

Great share of information' date=' if you have similar information or articles feel free to post them in this thread.[/quote']
Im sharing lots and lots of information here as we go. Once I find a new service or something that I find important I will get it posted here don't worry