Not that I know of, though there are lawyers who specialize in "aggressive" tax strategies (I do not have offshore accounts but find this world interesting):
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
THE SOVEREIGN A-LETTER
Your Link to Freedom, Privacy & Prosperity in the Offshore World
Vol. 2 No. 3 - January 21, 2000
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
IN THIS ISSUE . . . .
+ OFFSHORE /// Edwards Predicts Tax Havens' Death ///
/// Swiss Army' Knifed /// Bank Debenture Greed ///
+ PRIVACY /// Reno the CyberCop /// UK Sneaks Passport IDs
/// Encryption: Not Free Enough /// Unfree 'Nice' Canadians ///
+ WEALTH /// Soft Money: CYBERCA$H REPORT just published! ///
/// French Tax Splits Heirs /// Who Owns the US? ///
/// Too Much Debt? /// Forfeiture Reform ///
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
OFFSHORE * EDWARDS PREDICTS TAX HAVENS' DEATH:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
A year has passed since the infamous EDWARDS REPORT, a Labour
government study critical of the £350 billion financial industry on
the Isle of Man and in the Channel Islands. Since those dark days the
Crown Dependencies have surrendered in varying degrees to the report's
major demands for: 1) all crimes money laundering laws; 2) easier
police access to alleged criminal evidence; 3) international
cooperation with investigators' requests for information. 4)
disclosure of previously confidential ownership of international
business corporations. Island financial officials tried to put the
best face on the Edwards Report, claiming their situations generally
were acceptable by its standards. But the islands surrendered the most
attractive privacy features on which their tax and asset haven
reputations had been built. No one knows how much international
business was lost as a result.
Now comes ANTHONY EDWARDS, the UK treasury senior bureaucrat and
author of the report that bears his name. In a little noticed
November speech on the future of offshore financial centers 'in an age
of electronic and international cooperation' Edwards made some dire
predictions; major nations will soon begin to divide haven nations
into 'good and less good,' the 'good' will prosper but be less
'attractive' because they'll be forced to end banking and financial
secrecy. Then came his clincher: 'If, as it seems likely, the major
nations apply financial sanctions to these [offshore] centers, they
will increasingly be ostracized from the international community.
Their businesses will wither away.'
Don't bet on it, Mr. Edwards.
SOURCE: Private Wealth Advisor (Dec/Jan) London, UK. LINK:
campden.com
~~~~~~~~~~~~~~~~
DEBENTURE GREED:
~~~~~~~~~~~~~~~~
A 'debenture' is an unsecured bond backed by the issuer's general
credit rather than a specific lien on particular assets. Also called
'debenture bonds,' they often are convertible to stock shares. The
word itself comes from the Anglo-French 'debentour' and the Latin
'debentur' meaning 'They are owed.' For an unknown number of
incautious investors caught by the latest 'bank debenture' scams,
'they are owed' describes their empty handed stance.
The International Chamber of Commerce calls 'bank debentures' and
other 'prime bank instruments' one of the oldest and most common
financial frauds. Now they're back in vogue via Internet fraud. (One
search engine brought up over 800 URLs for 'debentures'). Bahamian
insurance expert Hywel Jones told OFFSHORE FINANCE CANADA (Dec. '99):
'It's greed and sheer stupidity' on the part of buyers that keeps bank
debenture fraud growing.
For starters, bank debentures per se are not traded on the open
market, nor are 'bank prime guarantees' or 'bank letters of credit' --
both fraudulent scams being dangled before gullible investors' eyes.
Thus when anyone tries to sell you a 'bank debenture' it should be a
red flag. Any privately traded debentures must be SEC registered and
those records are public.
Slick promoters claim you can make big money through bank debenture
trades ('roll programs'). If the sucker bites, they then ask the
'mark' to wire a large sum of money into a foreign bank account, and
that's the last seen of it. All this is shrouded in hush-hush tones,
with assurances that debentures are the confidential 'banking insider'
way of making huge profits.
LINKS: Offshore Finance Canada: offshorefinancecanada.com
For more about debenture fraud, see:
quatloos.com
~~~~~~~~~~~~~~~~~~~~
UNKINDEST CUT OF ALL
~~~~~~~~~~~~~~~~~~~~
If you know the Swiss, you know how jealously they guard their
distinctive way of life, their international neutrality and their
banking reputation. (Well, 2 out of 3 isn't too bad). But, unknown to
the Swiss nation, three years ago their government signed away the
exclusive use of the name 'Swiss Army,' together with the distinctive
Swiss red cross -- to a cutlery company in, of all places, Shelton,
Connecticut, USA! SWISS ARMY BRANDS (http://www.swissarmybrands.com/)
sells all sorts of other SA products aside from the famous
multi-bladed knife, including watches, pens, sunglasses and compasses.
If the knife's your thing, go to:
swissarmybrands.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+ PRIVACY * US A.G. WANTS WORLD WEB POLICE:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Speaking of sharp instruments, JANET RENO, US attorney general,
demands creation of an international, online network of law
enforcement agents with extraordinary powers to chase alleged cyber
criminals across all jurisdictional lines. Denouncing the 'dark side
of hacking, crashing networks and viruses' the Lawyer for the World
calls her little monster, 'LawNet.' She envisions 'a network that
extends from local detectives to the FBI to investigators abroad,'
Reno says. This would get around all those messy legal obstacles to
total federal power, creating a real national and world cyber-police
force. The AG failed to mention that most successful major hacker
break-ins have been aimed at government computers including
the White House, Defense Dept., FBI and even NATO. This, in spite of
government spending of US$1.75 billion on computer security last year.
Reno's plan is a regurgitation of a controversial 1999 Clinton
proposal called FIDNET. That monstrosity was roundly denounced by
civil liberties groups as being an Orwellian initiative ripe for
police abuse of privacy and legal rights. Clinton wanted virtually
every computer system in the US embedded with 'intrusion detection
monitors' at all 'key nodal points.' The US Congress promptly banned
use of any funds to develop this creepy computer spy network. Last
week (Jan 10) Clinton also proposed creating college kiddy corps
scholarships for student geeks who agree to work for the government as
computer security specialists/snoops.
LINKS: The Register, UK (Jan. 12)
theregister.co.uk
For another view on Law/Net/FIDNET:
antiwar.com
The Cato Institute 'Handbook for Congress' section, 'Expanding Federal
Police Power,' (http://www.cato.org/pubs/handbook/hb106/hb106-16.pdf)
explains limits on federal crime-fighting. See also Cato's report,
'Ominous Powers of Federal Law Enforcement,'
(http://www.cato.org/pubs/handbook/hb106/hb106-17.pdf) that details
the extraordinary police and prosecutorial powers imposed on the US
during the last 30 years.'
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
UK BACKDOOR PHOTO I.D. CARDS:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Under current UK law mandatory identification cards for all citizens
requires an act of Parliament. But the UK Passport Agency is taking a
backdoor approach to impose IDs within three years. It's developing a
'photo card' that contains all information now recorded on a UK
passport, including name, place, date of birth, sex plus a photo.
They're using the thousands of passport applications and photos
already scanned and stored electronically. UK civil liberties groups
are protesting. The Times, London (Jan. 13).
LINK:
the-times.co.uk
ml?999
~~~~~~~~~~~~~~~~~~~~
NOT ENOUGH FREEDOM:
~~~~~~~~~~~~~~~~~~~~
Last week we expressed support for what we called 'a major defeat for
the police state mentality.' We meant the new government supposedly
liberalized export rules that allow US companies to sell sophisticated
encryption software abroad. Now civil libertarians have read the fine
print and say the rules fail to solve the constitutional questions at
the heart of pending encryption court cases. The American Civil
Liberties Union, the Electronic Privacy Information Center and the
Electronic Frontier Foundation all say the new rules still restrict
free speech and continue to restrict what can be published on the
Internet. They vow to continue pushing for complete freedom to publish
encryption software and technology. New York Times (Jan 18).
LINK:
nytimes.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~
PC? PROBABLY CANADIAN, HEH?
~~~~~~~~~~~~~~~~~~~~~~~~~~~
In Canada, the right to 'free speech' depends on choosing ones words
very carefully. Canadian columnist, Ian Hunter, charges his fellow
countrymen have punched enough loopholes in their free speech
protections to create what now is 'a pleasantly authoritarian
country.' The Charter of Rights and Freedoms, Sec. 2, declares freedom
of 'thought, belief, opinion and expression' to be 'fundamental
freedoms,' subject only to restrictions that can be 'demonstrably
justified in a free and democratic society.' Read for yourself (LINK
below) some of the silly, scary free speech restrictions now imposed
by law and law suits. Conclusion: Many Canadians want to be 'nice'
rather than free to speak their mind. Meanwhile, liberty diminishes.
The National Post (Jan. 13).
LINK: nationalpost.com and
also see:
nandotimes.com
0834476-0,00.html
~~~~~~~~~~~~~~~~~~~~~~~~~
WEALTH * VERY SOFT MONEY:
~~~~~~~~~~~~~~~~~~~~~~~~~
In its special Jan. 1 'Millennium Edition' The Wall Street Journal's
Sarah Lueck breathlessly told readers all about 'private Internet
'currencies' and other increasingly abstract forms of exchange [that]
may replace government notes.' We have news for you folks. The
cashless society is here now. The world is already awash in what one
Internet writer calls 'digicash paracurrencies,' emerging coins of the
virtual realm. LINK: 'Soft Money' WSJ, Jan 1, 2000.
interactive.wsj.com
m
The Journal thinks cashlessness raises 'intriguing questions about the
true role and meaning of money in an economy and in society. Why does
money exist? Does the system require anything concrete to make
legitimate the universe of floating bits and bytes greasing the wheels
of exchange? What are the limits of faith that people will place in a
promise that they hold something of value? When anybody can issue
cash, is anybody in control?'
Well, the Sovereign Society has the answers ready for you today. Our
brand new report -- 'THE CYBERCA$H REVOLUTION' -- explains exactly how
you can safely do business without cash and in absolute privacy. It's
the new world of cyberpayments! You can command digital cash flows
worldwide protected by encryption, use smart-cards that leave no
trail, take advantage of instant telecommunications and become
anonymous to government, credit bureaus or nosey databanks. Just
printed this week -- THE CYBERCA$H REVOLUTION -- ORDER ONLINE at:
sovereignsociety.com Or contact our
international headquarters in Waterford, Ireland:
Tel: + (353)51 844068.
Fax: + (353)51 304561.
In the US call (toll free) 1 888 358-8125.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FRENCH TAX HITS EXPATRIATE HEIRS:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The 1999 French Finance Act has turned French estate tax law on its
head. It's part of a Socialist government attempt to punish high net
worth individuals who have fled France to escape high estate and other
taxes. The new law especially hurts HNWIs who move out but leave heirs
behind in France. Until now French residents could claim as tax free
an inheritance or gifts from abroad, so long as the donor/decedent was
a not a French resident. The former estate tax aimed at worldwide
assets of decedents who were residents of France for tax purposes, or
at their property located within the nation.
Now if the person receiving the bequest or gift from abroad has been a
tax resident of France for 6 of the last 10 years, the transfer to
them is taxable, regardless of the donor's residence. Since French law
does not recognize common law trusts, distributions from trusts also
fall under the new tax law. French estate taxes run from 5% to 60%,
depending on the beneficiary's relationship to the decedent.
For US citizens living in France, Stephanie Simonard, a Paris
attorney, recommends getting legal help with a resident permit (carte
de séjour), which is difficult to obtain for non EU citizens. She
warns a US citizen living here is likely to be subject to double
taxation, first for US taxes based on citizenship, and in France based
on business conduct. The U.S. embassy lists lawyers and
accountants that can help.
LINKS: Stephanie SIMONARD, Avocat à la Cour, Cabinet Simonard,
16 ave George V 75008 Paris, France.
Tel: +33 01 53 23 94 20
Fax: +33 01 40 70 16 08.
American Chamber of Commerce in France,
156 blvd Haussmann 75008 Paris, France
Tel: +33 01 56 43 45 67
Fax: +33 01 56 43 45 60
Email: amchamfrance@amchamfrance.org
Web: amchamfr.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
WHO OWNS THE U.S.A.?
~~~~~~~~~~~~~~~~~~~~
A few years back US politicians delighted in attacking the Japanese
for their vast US real estate acquisitions. That, despite the fact
that then, as now, the largest foreign US ownership was UK and
European, not Japanese. Now the US Treasury says foreign US ownership
is a booming trend. A total of US$1.3 trillion (40%) of all US
government debt securities ($3.2 trillion) is now owned offshore. Five
years ago foreign citizens owned $641 billion, just 20% of the total
US marketable debt. And with a continuing huge US trade deficit
(nearly $26 billion in October), Americans are borrowing offshore to
finance imports and investments at home. Foreigners finance the US by
building factories, buying companies, depositing funds in banks,
buying stocks and corporate bonds and, as indicated above, investing
in US government securities. So, to the slogan 'Made in USA' we now
must add, 'but Financed Offshore.'
SOURCE: Wall Street Journal, Dec. 20, 1999.
~~~~~~~~~~~~~~~
TOO MUCH DEBT?
~~~~~~~~~~~~~~~
Not really, claims the National Center for Policy Analysis (Jan 17).
NCPA says total US debt is not rising precipitously, especially
compared to double digit debt rises in the inflationary 70's and 80's.
They discount the theory that too much debt will burst the stock
market 'bubble.' Debt growth is up slightly from historically low
levels of the early 1990s. During 1991-94, total US debt (household,
business and government) rose less than 5%. In 1998-99, debt grew more
than 6%. For more see:
LINK: ncpa.org
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
US SENATE VOTE ON FORFEITURE REFORM :
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Last year the US House of Representative overwhelmingly (375 to 47)
endorsed major reforms of US civil asset forfeiture laws. A broad
right-left coalition of consumer and trade groups, supported US Rep.
HENRY HYDE's forfeiture reform bill, the first major effort in 20
years to curb corrupt and abusive police forfeiture powers. Forfeiture
has raked in more then US$8 billion worth of cash and property since
the early 1980's for ravenous police who use forfeiture for private
funding of their salaries and operations.
Congress resumes session on January 25 and the Hyde forfeiture reform
bill faces a major test in the US Senate. The Clinton Justice Dept.
actually wants to increase forfeiture's evil police powers. Other
proposals water down the Hyde bill reforms. Keep up to the minute on
forfeiture reform.
Go to: the website of FORFEITURE ENDANGERS AMERICAN RIGHTS; sign up
for the FEAR e-mailing list.
Click on 'Subscribe to FEAR' and follow the prompts.
LINK: fear.org
~~~~~~~~~~~~
LIFE BENEFITS:
~~~~~~~~~~~~
The Sovereign Society's new PLATINUM Membership is on a roll with new
sign-ups. This special member status gives you our monthly newsletter,
THE SOVEREIGN INDIVIDUAL, plus all other membership benefits FOR LIFE.
No more renewal notices and you'll always stay on the cutting edge of
the offshore world. PLATINUM Membership confers full discounts on all
Society publications and conference fees. You get special E-mail
alerts unavailable to other members. And as a sign-up bonus we'll send
you our very latest research report, The OFFSHORE YELLOW PAGES filled
with up-to-date contacts worldwide - and that too comes with free
updates for life.
Full details: E-mail us at: sovereignsociety@compuserve.com. Want just
a plain, non-platinum membership?
Go right to: sovereignsociety.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Sovereign A-Letter welcomes your comments & suggestions.
Bob Bauman, Editor
Send E-MAIL to: sovereignsociety@compuserve.com
Want to know more? sovereignsociety.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Sovereign A-Letter is a periodic Net publication of:
THE SOVEREIGN SOCIETY
5 Catherine St. Waterford, Ireland
TEL: 353-51 844 068 FAX: 353-51 304 561.
MEMBERSHIP: One year, US$195 / £119
WEB: sovereignsociety.com
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