2 thoughts on “The Future of Tax Evasion & Offshore Services

  1. calgary411

    Well, that was certainly an interesting read! Especially, the author’s views:

    “President Obama has been consistently blocked in his attempts to overtax HNW (High Net Worth) individuals by the Republicans. Obama knows that he will never be able to significantly increase the taxes on the HNW. But he can go after their undeclared offshore money and the Republicans cannot object to the President zealously enforcing the law. Especially when the pursuit of purportedly wealthy tax cheats is popular with the majority of poor and middle class Americans. The only problem is the HNW he thinks are hiding money offshore aren’t; at least not in any significant numbers.


    The terms “tax evasion”, “tax evader” and “tax haven” are subjective. One country’s tax evader is another country’s investor; therefore an investor in the global economy. The notion that there exist vast amounts of cash that never make it into the global tax systems is a misconception of short sighted people and the myth spun by inept politicians since the beginning of the financial crisis.

    I am not here defending tax evasion, merely pointing out that all countries are, in some form, a tax haven for citizens of another country. And the pursuit of offshore tax evaders is not the answer to the world’s economic problems; the money is already in the system.


    What the overwhelming majority of Americans (especially Obama, Congress and journalist) cannot come to grip with is that the U.S. is the world’s largest tax haven and launderer of drug money(Global Research). Not the BVI, Caymans, Switzerland, Monaco, Panama, Costa Rica, Luxemburg, Lichtenstein or any other Obama identified tax haven the U.S. wants to persecute. The State of Delaware “S” corporation is favored by European and Asian nationals (criminal and non-criminal) for use to trade and invest in the U.S. and other jurisdictions (New York Times).

    Delaware corporations can be easily formed and are the most secretive entities in the world in regards to identifying the UBO. As a bonus the IRS does not require U.S. banks to report profits from interest paid to foreign nationals accounts or to report the payments to the UBO’s country of citizenship. Even though the IRS & Banks are fully aware the investors are breaking the civil and/or criminal laws of their home country.


    As tax evasion/avoidance is a worldwide sport I cannot address every nation’s tax policy here, so I will focus on evasion by U.S. citizens. Since the U.S. is the initiator of the war on tax havens and bank secrecy laws.

    The majority of U.S. tax evasion is committed in-country not offshore. The crime is mostly committed by the working class poor and middle class; not the HNW. The combined annual unreported income acquired by these tax evaders is estimated to be as high as 2 trillion dollars. The Internal Revenue Service states the tax cheats failed to pay an estimated $500 billion in taxes last year (as reported by CNBC). But I would not hold my breath waiting for an aggressive campaign, by the IRS, to pursue and prosecute the lower class of income tax evaders. It would not be politically popular. Many of these same people are probably ones supporting the pursuit of tax evaders further up the food chain. Ironic isn’t it?

    Offshore tax evasion, by U.S. citizens, is mostly committed by the upper middle class; doctors, dentist, lawyers and small business owners to name a few. The average offshore account found by the IRS through criminal investigation or via its Voluntary Disclosure Program is $500,000; hardly HNW. With the implementation of FATCA, over time, this level of offshore tax evasion will most likely nearly cease to exist. It will just be to hard finding offshore private bankers to open accounts for this amount of undeclared money; but there may always be some.

  2. Accidental

    Does anyone know who’s behind that website?

    I’d steer well clear, however eloquently it’s written. Soliciting US persons publicly for tax evasion? If it isn’t an IRS trap, he’ll be an IRS meal.

    Imagine giving your savings to someone who advertises criminal services online, pre-warns you that he’s very expensive and that he basically works alone. You’re safer in an OVDP.

    My major concern is that FATCA isn’t only an information exchange, it’s also a withholding mechanism. The IRS will have a tentacle into every ‘US’ account around the world. What happens when the QE / deficit / China embrace unravels? An Executive Order mandating the repatriation of all US capital, which they will have conveniently already withheld against your bank’s US deposits? We need to keep our savings in non-FATCA compliant jurisdictions: Russia, China, Singapore, Hong Kong, Dubai? Perhaps we can convince an asset manager in one of those jurisdictions to provide QEF data so we can invest in mutual funds and remain IRS compliant but beyond their reach.


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