No. We are on the cutting edge of banking privacy. We continually monitor banking regulations and so are prepared to locate the most private, least intrusive banking for our clients. It is certainly harder to find private banking these days, but we have succeeded. The Panamanian bank we currently work with has no offices in the United States and is therefore not subject to IRS pressure to reveal the names of its American clients. We are also looking into banking in other countries, so that if Panama banks ever become unfriendly to Americans, we will have other options for our clients to use.
Private Interest Foundations FAQs
The PIF provides the literal foundation (no pun intended) for your asset protection structure. The PIF is controlled by you. The IBC is controlled by the PIF.
Only the IBC can conduct business, but without the PIF as part of the structure, you would end up with direct control of the IBC. This would give you “interest in a foreign corporation”, which the IRS can use in order to assess taxes to you. With the PIF as shareholder, you can honestly say (and the public record will confirm) that you do not have an interest in any foreign corporation.
Additionally, the PIF can be used to provide for you and your family. It can own property, hold or invest money, own precious metals, etc. You can instruct the PIF to send regular stipends to your favorite relatives, or provide for your family after you die. The PIF structure is unbreakable.
The IBC can conduct business anywhere in the world. Between the PIF and IBC, you can do almost anything while retaining both privacy and control.
If any entity - foreign or domestic - engages in activities that are subject to the Internal Revenue Service income or other taxes, then that entity sustains a tax assessment. However, there is no reason why your foreign entities ever need to engage in such activities.
If you strategically plan how best to accomplish your personal and professional objectives, then neither your PIF nor IBC ever need become subject to IRS jurisdiction.
The PIF is the exclusive shareholder of the IBC. This gives the PIF direct legal control over the activities of the IBC (while you control the PIF).
I am not a tax attorney and so I cannot provide legal tax advice. If that is what you need, please seek out a tax professional.
However, I can provide you with at least one basic example. Under Panamanian law, a PIF can loan money that never needs to be paid back, as long as the annual interest payments are made. The PIF could loan money to your domestic business. This would provide your domestic business with an existing liability (carrying a loan is a liability, not an asset), which could be used to offset earnings and other income.
commercial purposes. It may collect passive income, such as rent, and it may own stock in corporations, but it may not otherwise engage in business.
However, the IBC can conduct business anywhere in the world. Used in tandem, the combination of PIF and IBC can do just about anything.
You, or whomever you select, will be appointed as Protector (the role of a PIF Protector differs from that of a Pure Trust Organization Protector). This is the person who will exercise control over the activities of the PIF. However, Panamanian law does not require the Protector’s identity to be placed into the public record, so your involvement will not be known to anyone outside of the legal team that create the PIF.
PIFs’ are created pursuant to Panama general Law 25. Any disputes involving a PIF or Panamanian IBC would be adjudicated in Panamanian courts. United States law does not apply to these foreign juridical entities.
In conjunction with an International Business Corporation (IBC), a Panamanian Private Interest Foundation (PIF) will provide you unprecedented levels of privacy, while allowing you to maintain control over the assets involved.