June 24, 2021
Offshore accounts have benefits when set up in a tax haven
Various ways exist for Texas taxpayers and those elsewhere to legally reduce their tax obligations. These methods are often known as tax avoidance, and many of them can allow individual taxpayers and companies to pay less taxes to the United States government. One way that parties do this is by utilizing offshore accounts in tax havens, such as Belize.
Belize is considered a tax haven because offshore companies can legally incorporate there, and the country does not make it overly complicated to set up. Additionally, Belize does not provide tax-related information to international taxing authorities, which means that individuals and companies that hold accounts there can expect their information to be kept confidential. The names of individuals and organizations can only be provided if a criminal investigation is underway and if the proper documents have been provided to retrieve the information.
Of course, that does not mean that United States citizens have no obligation to the IRS. Some important tax information includes:
- U.S. residents must report their assets to the IRS.
- If a person is living in Belize and has been out of the United States for 330 days over the course of a consecutive 12-month period, he or she may be able to claim Foreign Income Tax Exclusion eligibility.
- If a corporation does not have any business dealings in the United States, it does not have tax obligations to the IRS.
Still, it is important to understand that each situation is different, and if a person or company has ties to offshore accounts, it is important that the necessary tax obligations are addressed. If Texas taxpayers are facing issues with their overseas accounts, they may want to obtain legal assistance. Experienced tax law attorneys may be able to help ensure that all tax matters associated with the account are handled appropriately.