In the days of bare knuckle boxing, to protect yourself in the ring you kept your opponent “at arms length.” As defined by the Oxford English Dictionary to be “at arms length” means “to be as far away as possible, with the arms fully extended away from the body.”

In matters regarding taxation, expatriates should adopt the second option. The tax authorities on the other hand would prefer you to be “within arms reach”.

The question is: what determines at “arms length” in taxation terms? For many nationals, proving “non-resident status” can be very difficult. This can be even more difficult for U.S. citizens as they are taxed on their worldwide assets regardless of their circumstances.

So, here are some basic, straightforward rules to protect your confidentiality:

Carry a passport, green card, national insurance or identification card from another country.

Spend no more than 180 days in any one consecutive or ensuing tax-year period.

Ensure that you safely store documents which prove ownership and permanent ties in another country or jurisdiction. Included with these documents are official records of property, bank accounts, business directorships and shareholdings, office leases, medical records, and even links with chambers of commerce.

Keep a low profile. Never advertise the whereabouts of your assets, especially when it’s not necessary.

Search well away from home in investigating sustainable rewards to protect your previous hard-earned assets.

Hide your personal treasures deep off the beaten track, out of harm's way.

If you would like more information regarding asset protection, trusts, family limited partnerships or the subject of this article please call or email our office.