“The plaintiff was awarded an extra $3 million for pain and suffering.”  “Businesses are crying foul after the government raises the tax burden again.”  “Concerns are raised as restrictions on identity protection go into effect.”  Each of these statements sound like the plot of a Hollywood movie, yet each one could have been taken from the headlines of today’s paper.  Asset protection, tax shelters and identity protection have all been under attack in many countries.  Thanks to Panama Corporations and Panama Foundations, there is one place where those “headlines” couldn’t exist.

Why Offshore?

Panama has become the world’s premier location for identity, liability and asset protection, as well as the pre-eminent tax haven.  This tiny country, with its pro-business, anti-intrusion approach, has revolutionized offshore business solutions.  Because of the approach it is no coincidence that Panama is now home to second largest free trade zone (the Colon Free Trade Zone) in the world and the most important banking district on the planet.  The country of Panama has endeavored to be a world-leading business and financial market; they are well on their way to accomplishing that goal.

Identity protection

Usually identity protection only makes it to the front page of the news paper when people’s credit card numbers are compromised; the truth of the matter is that identity theft is more likely to be committed by the government than by an ordinary citizen.  Under the guise of “the war on terror,” governments are aggressively reviewing their citizens’ personal information: credit card info, cell phone records and other covert methods of monitoring activity is becoming more commonplace.  Panama Corporations offer an alternative to this; Panama Corporations are allowed to be “Bearer Share Corporations” which means that the owners do not have to be recorded and are only identified by paper shares of ownership in the company.  This arrangement allows for private business transactions and limits the tax liability of foreign corporation owners.

Liability protection

An increase in liability claims has been a growing problem in the United States and other countries for a number of years.  Approximately 90% of all lawsuits are filed in the US and one-third of its citizens will be sued at some point.  This of itself is a big problem but torte claims have grown virtually unrestrained as damage settlements in the millions of dollars have been routinely allowed.  The result is that losing a lawsuit can literally bankrupt 99% of all Americans and the government has done nothing to address the problem.

Panama has done something to eliminate the problem.  Because of the privacy involved in Panama Corporations and Panama Foundations, it is virtually impossible for anyone to find assets that you have invested in Panama; if your assets “don’t exist”, they can’t be used to settle a judgment against you or your company.  Such a feature is especially attractive to doctors or product manufacturers where the most lawsuits occur.

Asset protection

No one wants to think about divorce or tax audits, but the truth is that both occur.  Because of this, it is desirable to have assets that are placed in a location such as Panama where a judge cannot unfairly hand over your assets to satisfy such a claim.  Because the holdings of a Panama Corporation or a Panama Foundation are anonymous, they cannot be attached to the repayment of any lien or settlement.

Tax protection

Governments around the world have substituted tax hikes for responsible fiscal spending; the result of this trend is that the citizens are shouldering a heavier load each year for the irresponsibility of their leaders.  By investing in Panama Foundations (such a donation would be tax-free) it is possible to shelter a larger percentage of your income in a location where the money is still yours.  In addition, the laws that protect Panama as a tax haven are actually written into the law books as opposed to other countries where they are outlined but never included.  Panama simply offers you more legal protection than any other country.

Conclusion

Panama is a very safe country, but the greatest safety in this country doesn’t lie with the police force, it is found in the laws that protect the identities, assets and tax status of those who do business within its borders.  Panama is a great place for offshore business and now is the time to get involved!