The United States has one of the highest corporate tax rates in the developed world. Because taxes on businesses within the United States can be so high, many companies are proactive in finding ways to legally work within the tax code to protect their profitability by reducing the amount of taxes that are owed.

A Boston international tax attorney can provide assistance to any individual or company with investments offshore who is concerned about the possibility that noncompliance with tax laws could be made public.  While there are many legitimate reasons for investing offshore, offshore accounts are inherently treated with suspicion — and if undeclared offshore accounts come to the attention of the IRS, the consequences could include financial penalties and even criminal prosecution if it is determined the accountholder failed to follow the rules.

Swiss banks have not fared well since the crackdown on financial institutions that allegedly helped to facilitate tax evasion. The crackdown occurred after the great recession, ensnaring many respected financial institutions and causing serious problems for offshore investors who found themselves under investigation or reaching out to a Boston international tax attorney to explore options for voluntary disclosure.

If you have money in offshore bank accounts or you have signature authority over offshore accounts, you're required to report those accounts to U.S. tax authorities. In addition to declaring accounts to the IRS, you also must comply with a requirement to file a Report of Foreign Bank and Financial Account (FBAR) with the Financial Crimes Enforcement Network (FinCEN) if the aggregate balance of your combined offshore accounts hits $10,000 at any point during the year. Many offshore account holders don't realize they have all these obligations, and thus, inadvertently fail to comply with them.

Recent studies have shown that the use of offshore investing increases as wealth increases. In other words, wealthier people are more likely to invest some of their money in foreign financial institutions.  Many taxing authorities believe that this is motivated by a desire to evade taxes, but a close look at where people are keeping more of their money offshore suggests there may be other motivating factors for making the decision to move money out of your home country.