Is it true that Panama is a tax haven for Americans?

[hockey97]

Hi, I live in the U.S and will soon start my online business. I been talking to many people about tax plans. On how to reduce my tax that I owe.

I was told one way is to go to panama and open up a shell corp. I am not sure how it all works. Yet, I was told yes it's illegal in the U.S but they said most rich people do this. They don't pay taxes on their money that they earn.

So, I been doing research and on ebay found many panama lawyers charging between $200 to $800 USD for them to incorporate a shell corp they even said that I can visit their office to talk about a tax / asset protection plans.

Would like to hear from anyone here if they know anything about this... I know one nascar racer took his winnings to panama and never paid taxes on it. Yet, the U.S IRS knew he made those winnings since it was all over the news. Yet, they checked his tax returns and found he didn't include those winnings. Well he got faced with not just penalties but also faced prison time. Due to the fact tax evasion is a felony.

I would like to find a place where I can store my money outside the U.S and not have to pay taxes.

Does anyone have any idea how???

[MarkG]

I would like to find a place where I can store my money outside the U.S and not have to pay taxes.

Does anyone have any idea how???

Of course, - everyone wants to store funds and get involved in tax evasion - you have come to the right place. In Panama everyone is involved in tax evasion and nobody pays taxes. The secret to hiding zillions of dollars rests in saving enough old socks. When you have enough socks, it's then simply a matter of stuffing dollars into each.

Before saying any more - note that the previous paragraph is entirely untrue and should not be used for guidance on tax affairs. (Just felt there was a need to say this for some strange reason *lol*)

Please refer to the IRS for guidance on tax evasion and money laundering - along with the possible custodial sentences and penalties for this offense. You may also be interested in Googling the "Foreign Account Tax Compliance Act" which includes minor trivial issues, such as reporting of data to the IRS on US citizens holding foreign bank accounts.

[hockey97]

yes, but I am not U.S citizen. So would that still count??? I thought I can open bank accounts outside the U.S under my original country citizenship. I am in the U.S currently but looking to open bank accounts with my original country origin.

[MarkG]

yes, but I am not U.S citizen. So would that still count??? I thought I can open bank accounts outside the U.S under my original country citizenship. I am in the U.S currently but looking to open bank accounts with my original country origin.

OK.. Understand! Your personal circumstances are 100% relevant when it comes to offshore tax structures and vital to be aware of the laws of your domicile country and to take legal advice from a reliable offshore lawyer in whatever jurisdiction.

It is possible to tailor a legitimate scenario where taxation can be minimized. For example, if you are domiciled in any western country (other than the US), - by being resident outside your domicile country, this opens up a wide spectrum of possibilities for offshore activity.

There are other jurisdictions than Panama which offer OS services and it may be relevant, for example, that bank staff speak English etc. Only my 2 cents worth, but have little confidence in Panama banks - even the more well-known international banks based in Panama.

[EdBowers]

The USA is the world's premier tax haven for foreigners.

[bruceba]

yes, but I am not U.S citizen. So would that still count??? I thought I can open bank accounts outside the U.S under my original country citizenship. I am in the U.S currently but looking to open bank accounts with my original country origin.

Not so easy, if you are a US resident or Citizen you are taxed on world-wide income. If you pay attention to EdBowers posts you may save some heartache. If you are not a US citizen or resident the US is a good tax haven

[BalaBeacher]

If you define "tax haven" as a country that does not tax its residents on income received or earned from foreign sources, then Panama (likes most countries) would be a "tax haven." As Ed says, the U.S. is the world's largest "tax haven" for non-U.S. citizens. It says one thing when it comes to U.S. citizens (i.e., your worldwide income is taxed) and does another when it comes to non-U.S. citizens.

Countries are more often labeled a "tax haven" by high-tax countries like the U.S., UK, France and Germany and their puppet organizations (e.g., OECD and G20) because they are not considered "transparent" and "cooperative" to the satisfaction of the high-tax countries, who are ridiculously fearful their citizens are beating them out of some income taxes. In other words, these so-called "tax havens" simply respect their own sovereignty over the strong-arm of the G20 nations and decline to be bullied. Most nations, including Panama, have moved towards a willingness to share financial information when tax fraud is suspected. Even more movement is expected if and when the HIRE Act is fully implemented (requiring non-U.S. banks to essentially agree to provide annual reporting to the IRS on their U.S. citizens' accounts).

Related to a country's policy on sharing banking information is the country's privacy regarding corporations, which Panama has retained through accepted practice of nominee directors. So, it really becomes more difficult to discover hidden bank accounts if they're in the name of a local corporation with a nominee director and the real owner is willing to not disclose ownership of the foreign corporation or control over the foreign account - both required of U.S. citizens. In other words, they're saying "catch me if you can."

[nashir]

Nice informative sharing.