QUESTION: An offshore promoter has told me that it is very unlikely
the IRS would ever be able to find out who the beneficial owner is of
a Panama foundation as no documents have to be filed with the
government. They are kept in private hands. What are your views on
this? I should add I am a New Zealand Citizen and resident so my only
concern is the NZ IRS, however we have similar CFC laws as the USA.

REPLY: I'm not familiar with the tax laws in New Zealand, although I
plan to acquire a basic understanding if I'm successful in organizing
a seminar in Auckland the first week of December, 2006. My co-host has
already secured committments from 12 speakers from that area and has
been looking at different facilities for the meeting.

If the NZ tax laws are similar to those in the U.S., there are
probably some serious penalties for an intentional attempt to evade
taxes. The mere attempt to hide assets and income makes it easy for
any government to prove that there is a willfull intent to evade
taxes. But your question is how will they discover the hidden assets
and income.

I've devoted a large article to that subject called "The Secrecy Myth"
and it is on my web site at
http://www.offshorepress.com/secrecy-myth.htm

Here are some additional web sites that deal with the subject --
although most are in the context of the U.S. tax laws. Readers may
need to combine any broken segments of a long web site address.

http://www.assetprotectionbook.com/hide_offshore.htm
http://www.quatloos.com/traps/hideoff.htm
http://www.sovereignsociety.com/vmembers.php?nid=1203
http://www.ustreas.gov/press/releases/po366.htm
http://www.strasburgerandprice.com/calendar/articles/tax/cjm_tax01.htm
http://www.expat.ca/offshore_art.htm (Canada)
http://money.independent.co.uk/personal_finance/tax/article207871.ece
(U.K.)

Vern Jacobs