Tax Haven versus Safe Haven: Where Is the U.S. Taxpayer/Investor to Go?

Traditionally, investors would select a particular tax haven for purposes such as low taxation; however, a host of other factors may prove far more essential: confidentiality, banking, currency control, communications, and treaty networks. Before selecting a particular tax haven, taxpayers and investors need to cautiously examine the economic and political stability of the nation, its geographic accessibility to worldwide markets, the availability of labor, the risk of nationalization of assets, and government cooperation. Planners need to keep in mind that the privacy and confidentiality once promised with these planning tools have eroded. Despite these shortcomings with offshore businesses and investing, the need for international tax planning has not diminished. [ABSTRACT FROM AUTHOR]