Many believe that if you open a bank account offshore at any of the popular jurisdictions such as Panama or Belize, then that bank account would be out of the reach of home tax authorities and you can pretty much do as you please with it. Further it is thought by some that any earnings from said account need not be reported.

This line of thought is further bolstered by offshore hucksters who claim the above is true.

Fact is that opening a bank account offshore is not illegal but lying on your tax form is.

Remember those direct questions about offshore bank accounts and trusts on your income tax form? They are there for a reason. The government wants to know where your assets are so that they can tax them or seize them as they feel is appropriate.

On shore banks do not know the meaning of customer privacy and now function as agents of the government by reporting everything you do according to a bizarre set of reporting rules forced upon them.

Ferreting lawyers want to know how big and where your assets are too and this is easy for them to ascertain in the US or Canada.

It is well documented in the US that opportunistic lawyers actually prey on wealthy folks by crafting and instigating law suits knowing that many targets will settle out of court just to be rid of the trumped up problem.

Opening a bank account in Panama is fine but how are you going to get any sizeable amount of money into your shiny new account without sending up red flags all over the desk of your friendly tax official?

Your local bank is a snitch!

Governments under cover of excuses referring to terrorist threats and their possible money laundering activities now keep close watch on farmers in Saskatchewan and vintners in California in case they are doing something that is a national threat!

Privacy has never more threatened than it is today and as a direct result has never been more important. However privacy is now only for those who insist upon it, create it and defend it.

Forget about opening an offshore bank account as that alone will accomplish nothing.

Consider the proper creation of a competent offshore structure that is lawful, powerful and very, very private.

A good offshore structure will still do today what it has done for generations and that is to provide privacy and asset protection for assets which if left unprotected onshore may soon no longer be yours to protect.

And yes. Depending on the situation there may be some tax efficiencies as well!