Structuring Cash Deposits Is Illegal

Structuring Cash Deposits Is Illegal
Structuring Cash Deposits Is IllegalStructures Versus Structuring

Oct. 30, 2014
Panama City, Panama

Dear Offshore Living Letter Reader,

The IRS is in the news again, this time for confiscating the bank accounts of small businesses operating mostly on a cash basis. One restaurant owner had her bank account frozen by the IRS. She had US$33,000 in the account, which represented the entirety of her operating capital. Effectively, the IRS put her out of business. Fortunately, some Good Samaritans have stepped up to help out.

This isn’t the only such story in the news recently. In fact, the U.S. government’s use of civil forfeiture to seize the assets of private citizens has been an expanding problem for years, and, as more and more government agencies and law enforcement departments see how easy it is to steal from law-abiding folks, I think we’re going to be reading more of these stories in the press.

The premise behind the IRS seizures is a concept called structuring. It is illegal to knowingly and willfully make cash transactions (deposits into bank accounts in particular) under the US$10,000 reporting requirement in order to avoid the reporting requirement. Whenever someone deposits more than US$10,000 into an account, the bank is supposed to report that event. Continue reading “Structuring Cash Deposits Is Illegal” »

Property, Stock, And Agricultural Investment Opportunities In Paraguay

Paraguay river
Paraguay riverParaguay By The Numbers—Here’s Why This Blue Ocean Market Has My Attention

Oct. 27, 2014
Asuncion, Paraguay

Dear Offshore Living Letter Reader,

“Paraguay is the world’s 10th-largest exporter of wheat.

“It’s also the world’s eighth-largest beef exporter, seventh-largest exporter of corn, sixth-largest producer of soy, fifth-largest exporter of chia and soy flour, and fourth-largest exporter of yucca flour and soy oil.

“The country has the third-largest barge fleet in the world (after the United States and China) and is the third-biggest exporter worldwide of yerba mate.

“Paraguay is the second-biggest stevia producer and exporter in the world and the world’s #1 exporter of organic sugar.

“Paraguay is also a competitive and tax-friendly investment hub. You pay no tax on yields earned from an investment in the Asuncion stock exchange, and both the value-added (or sales) tax and the rate of corporate tax are 10%. This corporate tax rate compares nicely with those in Argentina (35%), Colombia and Brazil (34%), and Peru (30%).

“At about 400,000 square kilometers, Paraguay is the size of California. It has a total population of 7 million (70% of which is younger than 30 years old), a working population of 3.1 million, and a GDP of US$26 billion. The guarani is the official currency; the current rate of exchange between the guarani and the U.S. dollar is about 4,600 to 1. Continue reading “Property, Stock, And Agricultural Investment Opportunities In Paraguay” »