Invest Offshore Newsletter

Published: Wed, 05/31/17

Newsletter Issue #115 Invest Offshore
 
 

May 31, 2017
Offshore Investment Guide

Dear ,

The 402(b) Offshore Capital Structure is the only type of Foreign Financial Account that individuals can use for cash flows and accumulations that are not subject to individual income tax.

We are your Cross-Border Capital Flow experts, ready to provide your $5M+ global enterprise with tax-complianrt, offshore investing and banking solutions with legitimate tax advantages.

Contact us today to schedule a free consultation.

Invest Offshore

402(b) Foreign Financial Accounts

The only way to receive funding gross rather than suffering a current tax is to have the flow of funds internationally recognized as an excluded from reporting financial account and an exempt beneficiary that is not subject to income:

The USA, OECD (including Canada, Mexico, the E.U.) and throughout Asia Automatic Exchange of Financial Information world means that the project funding is automatically income to the person in command and control of the cash flow of the project.

It is your project, the income would be treated as yours; what else could it possibly be?

That means that the flow of funds is your taxable income unless it is specifically recognized category by tax authorities in the USA and a list of 101 additional countries as not being your income.

Therefore, we look to organize cash flow and accumulations to be recognized as not your income.

Pay Tax Authorities every penny required by law. But the law does not require you to over-pay!

The Reasons Why 402(b) for Offshore

Governments around the world know more than ever before about the activities of account holders that maintain undisclosed accounts and the financial institutions where those accounts are maintained.

Governments now have unprecedented access and insight into the hidden world relating to the maintenance of offshore accounts.

Much like Foreign Account Tax Compliance Act (FATCA), the information to be exchanged between governments includes the names of account holders, aggregated balances, and residency information; however, Automatic Exchange of Financial Information (AEOI) is not U.S.-centric.

European, Latin American, Asian and other jurisdictions’ governments will exchange information with one another on taxpayers with accounts in non-resident jurisdictions around the world and investigating activities by asset management companies, corporate service providers, financial advisers, insurance companies and other financial entities to acknowledge their role in facilitating tax evasion, disclose the individuals engaged in this conduct, and cooperate in an effort to address and resolve criminal exposure.

Action 1:

The entire cash flow needs to be visible.

The USA and 101 additional countries have agreed to enforce an Automatic Exchange of Financial Information on all cash flows for the purpose to ensure that taxpayers pay the right amount of tax to the right jurisdiction.

Which means cash flows must be visible to the USA and 101 other countries tax authorities. Participating jurisdictions send and receive pre-agreed information each year, without having to send a specific request.

The reason why:

Cash flow to and from financial accounts of institutions, individuals and entities used in the past were not transparent to tax authorities.

The result required:

Information to be automatically exchanged each year includes interest, dividends, account balance, income from certain insurance products, sales proceeds from financial assets and other income generated with respect to assets held in the account or payments made with respect to the account.

Reportable accounts include accounts held by individuals and entities (which includes trusts and foundations), and compliance includes a requirement that financial institutions "look through" passive entities to report on the relevant command and control persons.

The financial institutions covered by the enforcement include custodial institutions, depository institutions, investment entities, insurance companies, unless the institution is specifically excluded from reporting.

Action 2

The USA and 101 Country Automatic Exchange of Financial Information world means that the project funding is automatically income to the person in command and control of the cash flow of the project.

It is your project, the income would be treated as yours; what else could it possibly be?

That means that cash flow is your income unless it is specifically recognized category by tax authorities in the USA and 101 countries as not being your income.

Therefore, we look at cash flow that is recognized as not your income.

The reason why:

In the Automatic Exchange of Financial Information world there is a retirement plan category that is agreed and recognized as not subject to tax and regulatory reporting because it is not your income.

This is an excluded from reporting financial account with respect to assets held and other income generated. This is exempt from reporting the financial assets with respect to any beneficiary of assets held in that account.

The result required:

The Automatic Exchange of Financial Information world recognizes this cash flow and other income generated is not income.

The fact it is recognized as exempt from reporting means that what you are doing is understood, agreed and registered as legal non-disclosure because it is not your income it is not reported.

The only way to receive funding gross rather than suffering a current tax is to place a specific type of retirement plan between you and the cash flow. That cash flow is recognized as an excluded from reporting financial account and an exempt beneficiary that is not subject to income:

To receive access to your copy of the "Offshore Capital Structure White Paper" click here.


Tax Advantage on Offshore Capital Gains

There is Only One Statutory Law for Capital Deductible, Capital Raising and Provides for Deferral of Income on Gains and Accumulations:

There is no tax strategy in trust law or offshore companies

Donald Trump's Fiscal Tax Plan will increase the ultimate yield on your corporate projects and investments offshore.

Trump's plan scraps dividend tax and at the same time it scraps the foreign bank interest tax exemption. Which means, for example, bank lending overnight from the Cayman is redundant/ irrelevant. ''Tax Havens'' such as Cayman, Bermuda, BVI, Panama, Channel Islands, Ireland, Isle of Man have no future.

There is no corporate need for elaborate outside USA structures for any business, project or investment capital that were used in the past. Whether a U.S. Corp or Foreign Corp it will be tax neutral. Carrying interest by means of an offshore company is in the rear view mirror and no longer functions.

What does function is a capital deductible and capital raising deferred compensation foreign retirement plan for the foreign business.

There is no off-the-shelf product that can be purchased to achieve capital deductible and capital raising solution that we deliver for our clients. The mortar to produce the facility to corporatize your assets and investing is implemented by Fairbrook Alliance. The building blocks are registered and recognized tax compliance in occupational pension law and in inter- governmental agreements as an exempt beneficiary and excluded account.

Deferred income investing beats anyone's yield.

To receive access to your copy of the "Offshore Capital Structure White Paper" click here.

Invest Offshore

 

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Disclaimer: This document was produced by and the opinions expressed are those of Invest Offshore as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Invest Offshore to any person to buy or sell any security. Any reference to past performance is not necessarily a guide to the future. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Invest Offshore does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof.

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