| By
Gary Scott
Recent messages have focused
on Ponzi schemes but there are other types of scams to watch out for as well,
such as offshore trust IBC scams.
Some offshore trust IBC scams
are ripoffs that offer overseas pure trusts, others offshore banks, some international
business corporations (IBCs) or some other similar structure. We have been warning
about the dangers of offshore trust IBC scams for years! In January 2001 this
site outlined the dangers of offshore trust IBC scams by saying:
Offshore Trust IBC Scams Warning
"Our business has been on
the forefront of using international structures for years, both in investing and
in using overseas structures. We were using promoting and managing Cayman, Panama,
Isle of Man companies decades before they became a rage. We were in Belize almost
20 years ago. What we used to be able to do legally was amazing, but slowly legislation
eroded what can be done for most individuals unless they have really large businesses
or estates.
"Unless you plan to do business
out of the U.S. or have volumes in the many millions, an IBC won't accomplish
a thing, nor will an overseas trust. The rules have become so complicated and
compliance so onerous that I have shut down all my overseas structures long ago.
"There are so many scam operators
in this business now that you really have to beware. Using them actually makes
it more dangerous and visible than not for the peculiar reason that the IRS had
toned itself down within the U.S.
"The IRS has soften its stance
very much in the US but because of this, to raise revenues they have hardened
their focus on overseas structures, especially on promoters of such structures.
I have seen several of my readers get in trouble just because they used the wrong
promoter.
"If someone offers you a pure
trust, constitutional trust or contract trust be especially careful. It might
indeed mean a trust that does not comply with US tax regulations. This could lead
to trouble!"
Now we can see great proof of
how dangerous the fraudulent structures are in an ezine by David Ingram who writes
aboutJerome Schneider,a man who promoted phony offshore banks for years. The Feds
chased Schneider for some time and because he was a Canadian it took them longer
than usual to shut him down. However they prevailed and you'll see the horror
story of his customers in Ingram's ezine.
Offshore Trust IBC Scams Explanation
Ingram's ezine comes right after
this ad below:
Advertisement:
--------------------------------------------------------------
My novel the 65th Octave provides
an enjoyable way to learn about fraud and scams. The hero is a scam catching expert
working for big banks. The book outlines why scams work and why suckers always
lose. I recommend you read the book. It has some in-depth economic information
but is also a fast paced, fun read. Order the 65th Octave at GaryScott.com
-------------------------------------------------------------
Here is David's ezine about the
Jerome Schneider fraud:
"David, If an American citizen
had a consulting company incorporated offshore, bu the work was all in the U.S.,
would it be beneficial to become a Canadian citizen?
----------------------------------------------------
" David ingram replies: - Short
question - long but important answer
"An American Citizen Must file
a US tax return every year they are alive no matter where they live, no matter
where the money is coming from and no matter what other citizenships they might
have.
"Watch out for OFFSHORE corporations
as well. Jerome Schneider who set up as many as anyone else over a 12 year period,
was recently convicted. As part of his plea bargain for a lesser sentence, he
turned in over 1,000 clients he had set up. You can read the full story at Quatloos.com
"In his plea bargain, Jerome
Schneider (who used a lot of "my" material inappropriately) agreed to
pay a restitution of $100,000 (supposedly all he had left after millions of fees
and more importantly turn in all the clients, their lawyers, bankers and anyone
else involved. You an read his plea bargain here.
Quatloos.com
"I attended one of his seminars
at the Waterfront Hotel and found it joke. Also spotted a whole bunch of my material
in his handouts. It was obvious that the material had come from my faxed monthly
newsletters from Oct 93 to August 1998. He was a paid subscriber at $125.00 per
year.
"In addition, if you have an
offshore corporation, you are liable to file a form 5471 each year. Failure to
file the 5471 form (which makes all the internal finances of the offshore corporation
part of your 1040 Income tax return) can accrue a fine (per year) of $10,000 for
the first 90 days and $10,000 every 30 days thereafter. Note that this fine does
not require the corporation to have made a profit or even done any business. It
is a parking meter type of fine for being the proud owner of an OFFSHORE (Canada
and Mexico are offshore for this purpose) corporation and not reporting it to
the IRS. Over 1,000 of Jerome Schneider's clients can expect major fines form
this because he was advising them NOT to file the form.
"In addition, if that Offshore
corporation (or just you) have signing authority over foreign accounts totalling
$10,000 or more, you need to file forms T DF-90.22 for each bank account you have
a signing authority over. This would include a trust fund you have set up in Canada
for your grandkids' education or a church or boy scout account if you could sign
them.
"Failure to file form T DF-90
to report the bank account for your offshore corporation can earn a fine of up
to $500,000 PLUS five years in jail,
"Should you become a Canadian?
EVERYONE should become a Canadian. Canada is a great country with everything good
that the US has plus more. You have everything to gain and NOTHING to lose in
becoming a Canadian.
"However, becoming a Canadian
does not save you any income tax as long as you remain a US citizen. You will
still have all the Income tax liabilities you have now.
"We had a 105 year old lady with
a $10,000 fine for not filling in form TD F-90.22
"A 68 year old lady had a $60,000
fine."
-----------------------------------------------------------------
YOU ARE WARNED! Watch out foroffshore
trust IBC scams. They do not eliminate tax and can lead to all types of trouble!
David is a CPA who lives in Canada
and I had the good fortune to meet him some years back. I have watched his very
prolific writing since that time and he is a wealth of tax information regarding
the U.S., Canada UK and more. His website is Centa.com
Until next message good investing
and business!
Gary
P.S. You can learn about the
correct way to gain the Ultimate Loophole, The Circle of 100, at our upcoming
international business and investing course in Ecuador. Details are GaryScott.com
Order the 65th Octave
at GaryScott.com
Sometimes one picture is worth
a thousand words
To avoid scams balance
yourself in nature like this cabin at Gary and Merri Scott's Merrily
Farm where you are welcome to visit and stay Little
Horse Creek. |
