It’s your own fault for not being wise enough when transferring offshore funds “home” and your own liability towards your local tax authorities. Some clients presume, “ok, the IBC is tax free, cool, that will do!” They don’t consider all consequences that they should have beforehand, they simply transfer money from here to there and then wonder why they have to pay tax and are accused of tax avoidance. Exactly for this reason we always advise clients to seek independent legal and tax advice from local accountant or lawyer.
Every individual is liable to their local tax authorities in regards to any income they receive, that’s just the way it is! Just like when you are self-employed you go and declare your income and pay tax on it as needed. Same way, when you get income from offshore entity, it is your responsibility to declare it and return tax on it. In most cases no one does this, subsequently, possibly, becoming an object for investigation.
Question to declare the funds or not is entirely yours, bear in mind that sanctions may be painful in case of problems.
You have few options how to get to your offshore funds, i.e., anonymous card, debit or credit card, wire transfers, carry cash across borders, back to back loan and other options.
Clients often transfer their offshore funds straight from offshore account into their personal account in their country of residence. This is what “foolish man” does, unless you become “wise man” and declare these funds. Otherwise, you should never link your offshore account with your personal account.
Let’s say, your income is declared very average or even low average, but you are driving Bentley or Rolls-Royce. Tax people have ayes and they will realize it sooner than you think! You can use offshore funds through anonymous card, use it or withdraw, but make sure you don’t spend beyond your means, or much more than you earn.
While it is an option to carry cash across border, don’t take a whole suitcase with you … Make sure you know how much you can bring along, there is a limit and if you exceed it cash will have to be declared!
Overall you have options and ways, you just need to do it wise!
Thank you for reading my post! And you are welcome to leave comments, feedback, suggestions for other posts or contact me for more information.
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