Money Offshore
Offshore Money by Shelter Offshore
Everyone knows that offshore bank accounts, corporations, trusts and strategies can be - and are - used by the super wealthy to evade taxation, but just how widespread the illegal use of these perfectly legitimate structures and solutions is, is suddenly becoming apparent as offshore taxation scandals are now rocking the US and Germany.
It’s a well-known fact that offshore solutions can offset taxation and even improve an individual’s tax status when used legitimately, and it is also well-known that many super wealthy illegally report their use of such structures to specifically avoid tax – but just how widespread the problem was is only now coming to light. If you thought offshore taxation was boring we can tell you that it is anything but as we reveal some of the scandals rocking the tax world currently.
A recent study in America by US Trust, Bank of America Private Wealth Management and Campden Research has revealed that increasingly high numbers of so called ‘ultra high net worth’ families are heading for serious inheritance tax bills when the head of their family dies because they have no up-to-date structured asset protection plans in place.
This is an asset protection warning for high net worth families the world over – because not only is the world of inheritance tax changing, but the ways in which you can ensure succession and protect your wealth from the taxman upon death change annually as well. An asset protection plan is a morphing, developing protection policy that has to be regularly updated.
Offshore Investment and Saving
When the British government introduced QROPS, (qualifying recognised overseas pension schemes) back in 2006, they did so perhaps ill advisedly or at least with a lack of sufficient public consultation and forward thinking. It is only now that offshore financial advisers are really pushing the schemes that flaws are starting to be found in the underlying concept of QROPS, and the government is thinking of legislation changes and a crack down on the sale of these so-called ‘offshore pensions.’
So where does this leave those who have already transferred their onshore pension pots into QROPS on the supposedly ‘good’ advice of their financial adviser? In this article we issue an offshore pension update and warning for those potentially affected and those considering their overseas pension options…
The EU Savings Tax Directive that came into force in 2005 in a bid to clampdown on cross border tax evasion within the EU and between other named countries has again come under the spotlight, and changes to the EU Savings Tax Directive have been aggressively proposed by the Germans.
The Directive forces financial institutions to disclose certain key information about certain types of account holder and/or withhold tax from such individuals’ accounts, but the German government are not satisfied that the Directive goes far enough in cracking down on tax evasion and are pushing or a complete overhaul of the legislation.
Offshore Investment and Saving
What is it about GREAT Britain – everyone wants to be successful, successful people are looked up to, but they are envied too and when they clearly have made a mint from their success they are hated and hounded and made to feel like outcasts. What a marvellous country…so glad there are no restrictions on leaving it!
Why the tirade? Well, it seems that the rise in numbers of Brits retiring abroad that in part led to the government making it easier to offshore a pension pot and avoid tax in the UK is now leading to reproach for those who actually take this option. At the moment it is mainly those with substantial pension pots who are investing their retirement savings offshore, and so they are being tarred with the ‘you’re successful, we hate you’ GREAT British brush. But with a massive rise in the numbers of pensioners likely to be moving abroad by 2050, soon far more Brits could be hounded in their retirement!
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