International Business Corporations

An IBC is a foreign corporation that is exempt from taxation in that country because it is owned by non-residents. It is similar to a U.S. corporation and sometimes is not the most appropriate entity for a foreign Asset Protection program.

While the IBC privatizes international wealth, it does not provide Asset Protection. An investor in an IBC can be compelled by a U.S. court to transfer ownership to a creditor or liquidate the IBC to repatriate assets for the benefit of a creditor. It is extremely difficult to prove that a gift made to an IBC was legitimate and for that reason, the IBC is not a logical choice for anyone looking to securely shield assets. Money deposited in a foreign bank account is also poor protection because a judgment creditor can force the disclosure of international assets and failure to do so could cause an act of perjury. Accordingly, IBCs and foreign bank accounts are not safe havens for protecting assets. They can play a small role in a good strategy, but they are not effective international firewalls.

CHOOSE THE RIGHT ASSET PROTECTION ATTORNEY!