Businesses expend more than what they do on taxes. America's Top Ten businesses paid back an average tax rate in 2011. They use offshore tax havens, secret organizations and several other loopholes in our tax code to minimize their income tax weights.<br><br>offshore banking is when you open a bank account in a foreign state. On account of the media and pictures people often think that offshore banking is illegal. It is in fact a totally lawful strategy to handle your finances, while this form of banking has been tied to illegal actions such as organized crime, money laundering and financing of terrorism.<br><br>In this regard, I have specifically warned a few customers about undeclared accounts they have in banks that I won't name and shame in public, but which are likely to be high on the IRS radar. Certain European banks, primarily banks in Austria <a href="http://roesauom.blog.com/2014/12/26/prepaid-offshore-debit-card-take-charge-of-your-finances/">extra enquiry</a> Switzerland and Denmark, that I could probably count in the fingers have been really effective in the past regarding marketing their services to Americans. UBS was one of these, but you will find others, including some little boutique private offshore banks with largely American clients.<br><br>When you initially apply to open an offshore bank account you'll immediately feel the impact of KYC (know your customer) regulations. Banks possess a means of making this requirement sound as if its in your best interest, but that is only them trying to sweeten a bitter pill.<br><br>U.S. Citizens <a href="http://www.offshore8o4b.estranky.cz/clanky/offshore-bank-accounts---6-myths-about-offshore-banking-you-could-have-considered.html">Useful link</a> who don't disclose offshore accounts, don't report income, and don't pay their tax may commit perjury (on filing a false tax return) and may be subject to 3 felonies and a misdemeanor - up to 14 years in jail.