Why are there a lot of investors with improperly structured accounts?
There has been an explosion of offshore investment activity in the last few years as small investors are becoming more aware of the opportunities and benefits of International Investing. Many individuals and organizations are exploiting this situation (there are even Multi-Level Marketing Companies who are offering offshore investment programs). Unfortunately, many, perhaps most, of these programs are outdated and no longer enable compliance with recent tax laws to allow legal avoidance or deferral of taxes. Some of these individuals and organizations are offering programs based on a two or three tiered trust structure that no longer provides tax avoidance or deferral because of U.S tax law changes made in 1996. Or using special trust arrangements that do not conform to “real life” rules and parameters. Or do not meet current tax and asset reporting requirements in the country of the taxpayer/resident. Other programs are being offered which consist of an offshore company, known as an I
Related Questions
- What protections were in place for retail investors who couldn’t take up the ECNs because they didn’t have Euroclear or Clearstream accounts?
- When will electronically submitted contributions be posted to the participants accounts within the First Investors Family of Mutual Funds?
- Why are there a lot of investors with improperly structured accounts?
