It is very important for you to understand and then decide whether you want to participate in the offshore tax amnesties or not.

It is an arrangement where the tax payers declare their assets in the foreign land and banks and accordingly pay up any tax that they have defaulted upon. There are offshore tax amnesty programs like ‘Offshore Voluntary Compliance Program ‘by IRS in US and similar program in UK called “New Disclosure Opportunity’. Many countries are seeking information on their tax defaulter from the tax haven countries through Tax information Exchange Agreements.

Though called offshore tax amnesties yet most of these are criticized hugely as many of the declarers have been severely punished when they declared their foreign assets through OVCP. If the banks where your deposits are kept are under the radar of your country’s tax department then it is better to declare your assets.
You decision to participate in offshore tax amnesties also depends on your personal circumstances and the tax regulations of your country.

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