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American Expatriates should bear in mind the following dictum; it’s important -
YOU CANNOT AVOID US TAX BY USING AN OFFSHORE MUTUAL FUND,
INSURANCE BOND, OR SIMILAR
Despite anything you may read, anything you find on an impressive website, anything you may be told by any securities salesman, there is no such thing as an offshore fund of this type that you do not have to report to the IRS and be heavily taxed upon - period.
Any U.S. shareholders of a "passive foreign investment company" (PFIC) and that is how offshore investments are almost always classed, are required to either:
- Pay current income taxes on their share of the income of the PFIC (if it is known), or
- Pay high (really high) tax and interest charges on deferred distributions from the fund.
Neither of these is attractive. You might be better off to invest thru a U.S. mutual fund although there are difficulties and drawbacks to that.
Don't believe that that you could ‘hide’ such an investment and the IRS 'could never find out'. In this age of terrorist activities, money laundering rules, etc. there is very little secrecy left. As we have seen recently even Swiss banks have aty last caved in to American pressure to divulge clients' information.
The IRS has a long arm and a longer memory. Do you want to be forever looking over your shoulder to see if that long arm is reaching for you?
Or would you rather stick to perfectly legal methods of tax avoidance or deferral?
US Tax Friendly Funds
There is one and only one, offshore investment vehicle that enjoys completely tax-free growth and yet is so ‘tax friendly’ that the IRS does not even require you to include it in your annual tax return.
It is:
DEFERRED VARIABLE ANNUITY (DVA)
The Deferred Variable Annuity is issued in Isle of Man by Isle of Man Assurance Limited, one of the longest established insurance companies on the island an a sibsidiary of a Swiss trust company.
The DVA is actually approved by the IRS for sale, not only to American expatriates but to residents of the USA.
The DVA offers a wide range of ivestment funds to suit your particular needs. Minimum initial investment is USD100,000 and can be made up of cash, suitable investments you already hold or a combination of both.
Again we emphasise, for a U.S.A. expatriate to enjoy the offshore benefits of tax free growth on investments and tax deferral of gains without the possibility of 'hassle' from the IRS the Deferred Variable Annuity is the ONLY vehicle available.
For details of the variable annuity please use our 'Send us Your Query' form
or click HERE
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Are You At Risk From The Dangers Inherent In Offshore Personal Investment Bonds?
American expatriates are often given erroneous advice. For instance: "You can take income from an offshore personal bond and include it in your $80,000 offshore tax free allowance “.
What rubbish! Such a stratagem is illegal and could be disastrous as the IRS might well regard it as a deliberate tax evasion and punish you mercilessly.
If you are an American and have an offshore insurance company plan of any kind you should start to do something about it now.
For more information use our 'Send us Your Query' form or click HERE
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As well as well as for long term medical, IMG has specialist policies for short or medium term travel (2 weeks to 6 mths) covering medical coats, cancell-ation, delays.
These can be for individuals or groups. There is even a policy for groups taking part in hazardous sports.
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HEALTHCARE COVER for AMERICAN EXPATRIATES
When did you last revue your healthcare insurance?
John Jenner International has a long association with International Medical Group of Indianapolis (IMG) whose medical insurance policies we consider amongst the finest available.
Click on the logo above left to see more and have the facility to be covered in a few minutes.
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for American Expats
