Off shore bank accounts what the hell are they an what benefits do they have??? (in layman terms please )?

Question

Answers that a normal person can understand please

The reason i ask is so : if i go to Oz live an work there ( i could be gone for a year or if i lke it for a long time) is it worth having one of these or do i just take me money with me an open an account when i get there.. Am confused

Answer 1

In the US at least, interest from offshore accounts is taxable to citizens and residents, and if you don't report it, you are committing tax evasion. Some of those banks don't report to the IRS, so you might be able to get away with cheating for awhile.

Answer 2

they are accounts with 'offshore' (ie foreign) banks in countries where the tax is lower than here. So you end up paying less tax on the interest you earn. You'd need to have a LOT of money to make this worthwhile going to all the hassle - indeed, the banks would probably only be interested in you if you were quite wealthy.

Answer 3

Off Shore bank accounts are not subject to the same tax laws as banks here in the UK example if you worked here in the uk but you where paid into a bank account which was not in the UK you would not be liable to UK tax

Answer 4

Basically they're accounts off-shore, usualy cayman islands or somewhere like that where the account holders do not have to pay tax on whats in the account.

Answer 5

Off shore account exactly what it says - an account outside of the UK allowing you tax free on your savings.

Answer 6

either a tax fiddle (no tax payed on interest)

or a way for criminals to hide money