The field of Asset Protection Planning, using Offshore locations as the main protection vehicle, has often been the source of many a myth and rumour. Most of these rumours started in the 1960’s when money started to filter ‘Offshore’ from the pockets of Film Stars, Pop Music icons and a host of Sports Stars. The reason for this, quite simply they had started to earn higher salaries, but resented the equally high taxes they were being forced to pay. This led people to believe that 'Offshore' and all that it implies/entails, revolves around rich people or criminality - or both!

In order to set the record straight and to dispel some of these ‘myths’ and ‘rumours’, we wanted to help you understand just which of these rumours are fictional and which of these are truly fact.

Many of the previously held beliefs are now so vastly inaccurate as to prove misleading to anyone who is a beginner in the field of ‘Offshore’ planning and so to assist with your understanding of the truth, here are some factual points:

Fiction: Offshore Investment is unregulated and risky when compared to Onshore.

Fact: Not at all. The Isle of Man, for example, is a highly regulated environment and a respected jurisdiction favoured by many of the biggest names in financial services. Many of the household names in the UK have chosen the Isle of Man as a base for their offshore companies. Such is the financial stregth of the Isle of Man, Standard & Poor's has awarded it the highest achievable rating of AAA. This Isle of Man also boasts a level of policyholder protection similar to that afforded to investors in UK life assurance companies.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Fiction: Offshore investors are simply evading tax.

Fact: Absolutely not. Tax evasion, wherever it takes place, is strictly illegal. Tax mitigation, on the other hand, is perfectly legal and should form the basis of everyone's financial plans. Investing offshore is one way in which tax efficiency can be maximised.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Fiction: Money Launderers rely on Offshore Financial Centres

Fact: Another myth. The Isle of Man, Jersey and Guernsey all have extremely strict anti-money-laundering legislation. Companies based in and the Governments of these three locations take their responsibilities with regards to anti-money-laundering very seriously.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Fiction: Offshore and Asset Protection is illegal.

Fact: Asset Protection using highly regulated offshore centres is perfectly legal for the majority of Expatriates globally today. In some instances, products or services are not available in certain jurisdictions but your professional Advisor can explain these and introduce you to the ones that are available to you legally.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Fiction: Offshore is only open to the Wealthy and people with lots of assets.

Fact: Anyone who holds anything of value, can benefit by careful Asset Protection Planning and a discussion with a professional Advisor. Whether you hold cash, houses, cars, companies, a private pension plan or a life insurance, these are all worth protecting.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Fiction: If you have insurance, you do not need to protect your assets.

Fact: Insurance does not cover you for any and every possible situation that may arise. Imagine being sued by a creditor or a fund within which you are investing collapses - what protection does insurance hold against that – none?

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Fiction: My Tax Revenue Service can call up my bank Offshore and find out anything about me anytime they choose because they are, after all, The Government..

Fact: The Banking Acts in the regulated offshore centres that we use, recognise the contractual duty of a banker to keep the affairs of their customer confidential and the customers' entitlement to confidentiality. There are very few limited exceptions to these principles but mainly these include circumstances where disclosure is required to assist criminal proceedings or to enable the Financial Regulatory Bodies to discharge their statutory functions.