Lalaguayaba

There is a huge difference between tax avoidance and tax evasion.
The former is quite legal and should be discussed and planned with an attorney/accountant combo; the latter is quite illegal and will get you a few years in a federal penitentiary. This quote was about offshore bank accounts not offshore corporations--but apparently treats them the same, as the company requires the bank account.
As an American citizen, any profit made from your investments, unless properly vehicle-ized, it subject to taxation. This includes interest, and capital gains made on sales of stocks, bonds, mutual funds, etc. The 'tax men' are not stealing it as such, they are just levying their legal responsibility to part a citizen from their profits. A well-structured offshore company, like a foundation, will enable one to profit legally, without relinquishing too much to the 'tax men.'

As for myself, I like the foreign-market access that such an account provides; if I were limited to using an American account with an American firm, I couldn't enjoy the ability to invest in several Asian markets and eastern European markets that do not trade publicly in the U.S. And with the fall in the dollar, I find it increasingly useful to work in Euros--having a value based in over a dozen countries is apparently a little more stable than being based on one country's currency.

As above, and previously stated by others--you will be taxed on profit taken as personal income if you are an American citizen. The anonymity is a sweet side to this type of investment. As far as keeping one's money safe--I'm sure lots of Argentines felt safe about their $$ until their country's economy collapsed, and all the banks with it; millionaires were crushed overnight, and lives were ruined due to the trust and reliance on one country's currency. Diversification amongst the world's stable currencies, instead of investment solely in one's homeland, sets a the stage for liquidity rather than poverty.

Cheers.