Quote:
Originally Posted by TheDoc
Why? Why has it changed in the last 5 years? VISA US and VISA EU don't use the same banks, or follow the same rules. As long as you don't 'live off the card' they would have no way of every knowing, tracking or finding out what the card is doing. It's not like you use it to take out cash.
Nothing should change, you keep your US based income, pay taxes, ect.. But when it's time for a couch (not a car) you pull out your special card.
Lets just say... I don't have one of these cards but I know a few people that may. The way around things is pure amazing and as long as you keep the greed in check, you will be fine.
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It has little to do with VISA US, VISA EU or VISA Mongolia, although there is monitoring on at least the first two regions.
You appear to be referring to the US, so - irrespective of the card, there is no problem tracking that card if this was a source of interest. There definately is an interest in any US citizen who appears to be have control, connected to an offshore corp or who is using an offshore credit card.
To quote "it's not like you use it (the card) to take out cash" but may use it to buy a couch. Do you not think, forgetting the cash part, that is more concrete evidence of a specific individual using a specific card at a specific location???
To quote, "The way around things is pure amazing and as long as you keep the greed in check, you will be fine." There is nothing amazing about it - it's called tax evasion.
In the last five years, - actually happened earlier than that - there have been various operations set up in both the US and EU to address the abuse of offshore scenarios being used illegally for tax evasion in the countries of the beneficiaries. Several prime cases have established principles involved, other action has been taken against, eg VISA International. In the EU laws have been amended to adopt these principles and in the US card monitoring is commonplace (for various reasons, not just related to tax evasion). On specifically US citizens using cards for tax evasion, there are monitoring facilities doing just that. Particularly with the US, there are MAT's (Mutual Assistance Treaties) in place for cooperation in financial crime and a range of other issues.
In the last 10 years or less there have been a series of rulings/enforcement by OECD imposed on what can be described as offshore's as well as industrialized countries. Almost all jurisdictions now comply with OECD rulings. (Will say, I don't agree with a number of these rulings for various reasons, but, it is not of great relevance as long as there is no illegal conduct.)
The core weakness in people using offshore facilities to attempt to evade taxation rests with one factor - "Where do they reside when operating these offshore facilities?" If they reside within a high tax regime country where they are obliged to follow the laws of that country - that is an obvious problem. Several EU countries now have rights to formally demand any other country open the banking accounts of any of their citizens who are involved in illegal activity. In the US, and relating specifically for US citizens, the tax laws are very clear already and annual reporting of all foreign income is mandatory. Failure to disclose is an offense.
Generally offshore banks have no interest in the tax arrangements of their clients - it is not their business. However, misuse of the laws of offshore areas to specifically commit financial crimes in other jurisdictions is not the type of business they want. They have all been there, done that and tired of hearing about it.
Summary - Re your quote - "Not at all, very safe, won't ever get blocked, and legal if done correctly." There is nothing "legal" about tax evasion and how safe this is depends on what level you like to gamble.