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Old 25th Mar 2009, 17:16
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Broke Flap
 
Join Date: Mar 2009
Location: Panama
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Offshore Banking

What you can legally do is create an offshore corporation which independently contracts your services. Essentially, the employer pays the contracting corporation directly then the corporation pays its employee (you) for services rendered. The corporation would pay you up to $88K /yr (tax free if living offshore for more than 335 days <not sure for UK!>) and the balance either sits in the corporate account accumulating interest or is invested through an offshore brokerage firm which corp would control. Any moneys gained from the residuals can be used for purchasing whatever the company deems necessary for what its employee needs (RE, car, plane, health ins., etc.) If you want to take it a step further, then place the corporation under a foundation. This would enable you to honestly say you do not own a foreign entity.
By the way, you do not always have to reveal that you have an offshore bank account. If you keep the balance under $10K you are not required to file it with the IRS. This gives you the flexibility to accept payments and "clear" the account by wiring it back to the states before it hits a reportable range. The guys over at OApanama should be able to help with this..
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