QUESTION: I purchased your book entitled *Legal Ways to Save Taxes
Offshore and Onshore*. Would a combination offshore IBC and Foundation
serve as a means of LEGAL income tax avoidance?

REPLY: The reason I didn't mention the Panama Foundation in that book
is because a Panama Foundation would only provide legal tax deferral
if it were organized as a corporation and was engaged in a trade or
business and was not subject to the various subpart F tax rules for
controlled foreign corporations. The problem with the Panama
Foundation is that the owners/founders can decide whether to use it
like a business corporation, like a family trust or like a charitable
foundation.

I did a search in the archives of this group and found there were
almost a dozen questions and answers about the Panama Foundation. So I
compiled them into a single document that is about ten pages long. A
copy is available at
http://www.offshorepress.com/offshoretax/panama_foundation_myths.htm

Vern Jacobs
http://www.offshorepress.com/offshoretax/otscams.htm