Are Panamanian Foundations Safe?
Many offshore promoters are pushing Liechtenstein Foundations, Panamanian Foundations and Panamanian Interest Foundations on the very wealthy and on US citizens. Many investors are taken in by the term “foundation” hoping and believing that it makes the structure a charitable foundation which is tax exempt and non-declarable to the IRS but nothing could be further from the truth. For a company entity to be tax exempt, it must be registered with the IRS under IRC §501(c)(3)., and this applies to both foreign and domestic entities. Only donations to a licensed charity are deductable on personal and business tax returns. US citizens may donate monies to any charity or group around the world if they are registered with the IRS. Offshore promoters of tax schemes lure Americans and Canadians into foundations as described stating that due to the many multiple levels of nominee directors and boards which allegedly control the Foundation’s assets, that no tax reporting is necessary. These promo
