Tuesday, March 17, 2009

Offshore Credit Card Program

The Offshore Credit Card Program, also known as the OCCP was initiated by the US Internal Revenue Service.

So, what does it stipulate? Well as we all know U.S. citizens areobligated to pay tax on their worldwide income.

Since credit cards give them convenient access to offshore money and offshore accounts in tax havens credit cards can allow income to be concealed from the tax authorities.

While the IRS stipulates that it is not against the law to have an offshore credit card, they also maintain that everyday people do not require an offshore credit card. They also claim that U.S. citizens are using offshore credit cards as a way to evade taxes.

The IRS took some measures to fight "tax-avoidance schemes" (their words) which involve credit cards issued by offshore banks - including some online offshore banks. As reflected in publicly filed documents, a number of actions have taken place in this Offshore Credit Card Program.

Nevermind that tax avoidance is actually legal and upheld by the US supreme court. It is tax evasion that is illegal. The full text of the IRS' Offshore Credit Card Program can be found here: IRS offshore credit card program

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