by Bobby Casey, Managing Director
In less than 2 weeks, I will be speaking at a conference hosted by Caye Bank in Belize (click here if you want to join me). It looks like I will be speaking at another bank conference in Europe next month, an entrepreneurship conference in February, an offshore conference again in Belize in March, and then our own Global Escape Hatch – Spring Conference, also in March.
But the most interesting request just came to me yesterday. About 2 weeks ago, an economist friend of mine called me to discuss a recent speaking engagement he had just attended. He was presenting on economic trends for a group of very successful entrepreneurs.
To put it mildly, he is not very bullish on the US economy. But that is not the point of this discussion. My friend, Roger, had the pleasure of listening to one of the other presenters that same day, who was actually a member of this entrepreneurship group. This other presenter had a very unique presentation.
He was on his way to prison for a few years for tax evasion.
I was not in the room, so I don’t know all the details, but basically, this guy was running his company as usual and his trusted advisers apparently were not properly filing his company’s tax returns and paying taxes for several years.
***Relevant side note here:
All income taxation is immoral. Period. It is government-sponsored theft at the threat of violence. You or I would go to jail for doing the same thing the government does every day. This, however, is a very real world example of what happens when you don’t bow at the feet of your master, even accidentally.
Speaking strictly from an economic perspective, corporate taxation is idiotic. Corporations only pass on their costs to consumers anyway, so corporate tax only increases the cost of living disproportionately for the lower and middle classes, while enriching the wealthy even further.
It also creates economic friction in the business which requires the owners to hire for unproductive tasks related to compliance. Imagine how much greater productivity could be if all effort was placed on providing quality goods and services to the customers.
Regardless of my viewpoint on taxation, I am also a freedom lover and don’t look good in orange. So unless you are interested in fighting an unwinnable war, make sure you file and pay your taxes. The repercussions are not pleasant.
***End relevant side note.
At the end of this vile tax cheat’s presentation, he made the comment to the audience, “If I would have known then what I know now, I would have gotten a second passport and some offshore bank accounts.”
Upon hearing this, my friend, Roger, met with the event organizers and mentioned that they should discuss with me the possibility of coming in for a presentation about offshore asset protection since this is what we do for Global Wealth Protection clients.
Yesterday, I spoke with the event organizers and it looks like I will be visiting them sometime in the next couple of months to present my ‘Geo-Arbitrage Strategy’ presentation.
As mentioned, I was not in the audience, so I am not exactly sure what the vile tax cheat had in mind when he mentioned having a second passport and offshore banking accounts.
Maybe he thought if he had taken those necessary precautions, he could flee the country and escape the long arm of the law. I suppose that is possible, as many countries like Brazil, Ecuador and New Zealand do not have extradition treaties with the United Socialist States of Amerika.
Or possibly, he thought he could implement an offshore asset protection strategy using multi-jurisdictional diversification. Even if he ended up spending a few years in prison, it would be nice to come out with a nest egg of a few million dollars available.
As it is, his reported $30M nest egg will be obliterated by taxes, penalties, and legal fees. I highly doubt there will be one red cent left upon his reentry into the unfree world.
It seems as though this man’s story was an eye-opening slap in the face for his peer group. No one thought it could happen to him. Maybe they still believe it could never happen to them either. But at least they are aware now, and seeking ways to develop their own offshore asset protection plan.
What about you?
Do you still think you are not at risk?
Do you even know what your risks are?
If you own a business, or any reasonably significant assets, you are at risk – plain and simple. You don’t need a seven or eight figure bank account for the bulls-eye to be on your back.
Do you have a successful business? Drive an expensive car? Have a kid in private school? Do you own real estate? Do you have a nice house?
Each of those things raises your profile risk, because it tells the world you have money. It’s all about perception.
Clearly the economy in the US is not improving, and all signs (not the bullsh!t signs the government provides) are pointing to worsening conditions. This can only lead to higher taxes, higher tax enforcement, and increases in civil litigation.
If you aren’t establishing a viable asset protection plan now, you need to pull your head out of the sand.