Don't know the answers but I hope it's true! Alberta's new budget includes an 11% provincial flat tax commencing in 2001.
===================================================
THE SOVEREIGN A-LETTER
A Web Publication of the Sovereign Society, Ltd.
Your Link to Freedom, Privacy & Prosperity in the Offshore World
Vol. 2 No. 8 - February 25, 2000
===================================================
IN THIS ISSUE:
+ OFFSHORE: / Nevis Sees Reds / EU Immigration / Will Caymans
Cave? / Ecuador in Crisis Means Cheap Prices /
+ WEALTH: / Tax Expatriates List / IRS Takes Aim at Fake Offshore
Tax Losses /
+ PRIVACY: / Front page ECHELON / KGB Internet Spies / Windows
Flaw / In Your Face / SEC CyberCops / PC Firewall Software
2 New Web Phones /
==================================================
+ OFFSHORE NEWS +
==================================================
St. Kitts Sees Reds; Nevis May Go
========================
If there is any one tax/asset haven country that has offered smooth
offshore financial operations, it's the two island Federation of
Saint Christopher (locally called 'St. Kitts') and NEVIS. In the
eastern Caribbean Leeward Islands, they're 225 miles east of Puerto
Rico, about 1,200 miles south of Miami. The Federation offers economic
second citizenships (in exchange for a US$250,000 investment),
air-tight financial privacy, no taxes, no information exchange
treaties and established asset protection trusts.
But a snap early election called for March 6 is raising serious
questions about the islands' future as a haven nation. One hot issue
was cooled when a notorious drug leader was extradited to the US on
Feb. 19.
herald.com
952.htm
This followed drug gang killings last month. To add to local woe, the
closure of the hurricane damaged Four Seasons Resort in Nevis
announced Feb. 22 is putting the island's biggest hotel out of
commission and a major portion of its labor force out of work.
But a greater threat to continued asset haven status is the openly
reciprocal courting going on between Prime Minister DENZIL
DOUGLAS and Cuba's FIDEL CASTRO. On Feb. 14 the Cuban
Foreign Minister paid a 2 day visit 'to strengthen bilateral ties'
which are already many and varied.
This St. Kitts leftist bent may rejuvenate the Nevis independence
movement. In August 1998 Nevis residents voted to secede from
St. Kitts. A 2/3rds vote was needed and the vote of 2,427 for -
1,418 against, fell just short. Nevis retains the right to secede, and
proponents vowed then they would try again. And Nevis, not St. Kitts,
is the hub of financial and asset haven activity.
Nevis residents complained they are treated as second class citizens.
Now with the real possibility that an increasingly Castro Communist
leaning regime may win re-election, Nevis may decide to go it alone.
LINKS:
Saint Kitts & Nevis Travel Guide:
christiantraveller.org
Government of Saint Kitts & Nevis:
gksoft.com
Caribbean-On-Line: St. Kitts & Nevis: Maps
webcom.com
======================
The Truth About EU Immigration
======================
Immigrants are injecting new dynamism into the continent's economies,
and creating thousands of new jobs. Yet every single European Union
government is trying to close its door to almost all new immigrants,
except for political asylum seekers and those making petitions to
reunify families.
For a revealing expose of European immigration policies, trends and
imperatives, see BUSINESS WEEK's international edition cover story,
'Unsung Heroes.'
LINK:
businessweek.com
==============
Will Caymans Cave?
==============
The CAYMAN ISLANDS government is 'reviewing' its Mutual Legal
Assistance Treaty (MLAT) with the UK and US. The issue: how the
MLAT meshes with a year old change in Caymans law removing a
specific exemption that prevented account freezes and forfeiture based
on foreign government criminal tax claims. London and Washington
demand the Cayman legal exemption for 'tax offenses' be repealed
entirely. But non-payment of taxes is not a crime in the Caymans where
there are no taxes. And the islands apply the principle of 'dual
criminality.' That means MLAT requests are honored only for alleged
acts that are clearly criminal in the Caymans as well as the
requesting nation. Stay tuned.
SOURCE: 'Offshore Red' (Feb. 2000)
LINK: campden.com
===========
Ecuador in Crisis
===========
The U.S. State Dept. warned (Jan 21) that Ecuador is in the continuing
grip of serious 'political and civil unrest.' A national state of
emergency has been in effect since Jan. 6, with semi-martial law
imposed by the military and the president was deposed. That's one
nervous, official view.
LINK: travel.state.gov
GARY SCOTT, veteran offshore expert and author (and Sovereign
Society advisor) sees the Ecuador situation differently. It's his
adopted homeland. Says Gary: 'Rock bottom property prices, fabulous
ocean views and easy living. Ecuador has it all. And right now, prices
are lower than ever. Mediterranean villas that overlook the sea for
only US$35,000.'
LINK: escapeartist.com
================================================
+ WEALTH +
================================================
Official Taxpatriates List
================
The term 'taxpatriate,' meaning a US citizen who renounces his or
her citizenship in order to avoid payment of taxes, may have been
invented by Forbes magazine. ('And Don't Come Back' Nov. 18,
1996). LINK: forbes.com
Under a 1996 law the IRS must publish lists of all persons who
abandon US citizenship, entitled 'Quarterly Publication of
Individuals, Who Have Chosen To Expatriate, as Required by Section
6039G.' If you want to know who has left, go to,
LINK:
frissell.com
To find future lists, search the 'Federal Register' using the term
'chosen to expatiate' at
LINK:
access.gpo.gov
===========================
IRS Takes Aim at Fake Offshore Losses
===========================
International tax attorney, J. RICHARD DUKE, calls to our attention an
IRS notice issued Dec. 27 attacking the use of 'contrived steps'
involving paper losses, offshore corporations and partnerships said to
produce allowable deductions for federal income tax purposes. The IRS
reminds that only bona fide losses supported by economic consequences
are permitted; that all persons involved in such schemes, including
clients, promoters and others will be liable for full taxes, penalties
and interest.
SOURCE: IRS Notice 99-59, 52 Internal Revenue Bulletin 761
(12/27/99), 'Tax Avoidance Using Distributions of Encumbered Property'
LINKS: J. Richard Duke, JD assetlaw.com
==============
F.T. Country Surveys
==============
The FINANCIAL TIMES (London) offers some of the best 'country
surveys' available on the Internet, concise financial and economic
status reports on various nations. Three recent surveys cover Bermuda,
Mexico and Canada. If you have not visited the FT website,
(http://www.ft.com), you may have to register, but there's no charge.
LINKS:
ft.com
ft.com
ft.com
=========
Need a Visa?
=========
Headed for a new, exotic place for the first time? Do you need a visa
to get through Customs upon arrival? Here's an offshore website that
answers your questions about visas for every nation.
LINK:
escapeartist.com
==============
Governments Galore
==============
Check out a huge Web database of government; parliaments, ministries,
offices, courts, embassies, central banks, and more. Includes
political parties. More than 14,000 entries from 220 countries.
LINK: gksoft.com
=====================================
A Must: Get Your Copy of The CyberCa$h Revolution
=====================================
The Sovereign Society's 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.
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.
===============================================
+ PRIVACY +
===============================================
ECHELON in the News
================
The NSA's global spy network finally made the big time on Feb. 23
as a front page headline in The New York Times asked: 'Is US a Global
Snoop.' The Times feeble verdict; 'May be.' The EU Parliament was not
so sanguine. As we predicted, a new report to the EU has created
an uproar over the US-UK ECHELON system's alleged electronic spying
on European commercial activities. Even UK PM Tony Blair felt
compelled to deny these business espionage charges.
LINKS:
washingtonpost.com
wired.com
========
About Face
========
The US media is finally waking up to the Big Brother implications
of police face recognition technology. The UK is already awash
with street spy cams and now the US is using video cameras to
identify and track individuals in public.
LINK:
deseretnews.com
=============
KGB Internet Spies
=============
Shades of the US NSA! The Russian Federal Security Service, successor
to the late Soviet Union KGB now spies on the Internet, raising fears
of blackmail and business espionage.
LINK:
cnn.com
html
================
Windows on the World
================
ECHELON is bad enough, but now there are claims that US intelligence
agencies have inserted code into Microsoft's Windows software that
allows the secret interception of documents.
LINK:
lineone.net
================
More SEC CyberCops
================
The US Securities and Exchange Commission is hiring 60 new cybercops
to patrol the Web. To stem a 'climate of Internet lawlessness' the
SEC will add up to 100 people to its 850 member enforcement staff of
lawyers and analysts, with 50 to 60 dedicated to combating Internet
fraud.
LINK:
washingtonpost.com
========
New Shield
========
STEFAN BRANDS, the founder of Zero Knowledge Systems, holds the
patent to 'minimal digital disclosure certificates,' a system that may
provide a new form of electronic shield against government
surveillance and corporate data collection.
LINK:
wired.com
=========
PC Firewalls
=========
With all the hacker bad news you may be concerned about your own PC
security, especially if you have a direct Internet connection via
cable modem or DSL line. Here are two good firewall software programs
that offer protection against all intruders:
(1) BlackICE Defender, ($39.95) networkice.com
(2) ZoneAlarm 2.0 (free shareware) zonelabs.com
============
A Hacker's View
============
KEVIN MITNICK is the world's most celebrated computer hacker.
That's the reason they put him in jail. Now he's free and angry.
For his side of the story, see,
LINK:
newsunlimited.co.uk
=========================
PRIVACY 2000, by Mark Nestmann
=========================
This chilling report reveals the inner workings of Big Brother's
global surveillance network. It warns about false privacy and asset
protection plans that actually increase your financial and privacy
exposure. It gives you real alternatives, less complex and less
expensive, that thwart disclosure and make your privacy airtight. (256
pp. ISBN 0-9657151-3-2.) Price: US$75. When ordering by fax or phone
please quote Code: MNPV-W11132 Contact our international office in
Waterford, Ireland: Tel: + (353) 51 844068. Fax: + (353) 51 304561. In
the US (toll free) tel: 888 358-8125; fax. 888 892-1542. ORDER ONLINE
at: sovereignsociety.com
===========
Net2Phone 4 U
===========
A globe talking reader tells us he's seen the Internet phone future
and it works! He says hurry, download and install 'Net2Phone' software
on your PC. You can place calls worldwide at an average cost of about
US$.13 (cents) per call. Calling from a PC requires a microphone, but
the party called can use a standard phone to respond and talk.
INFO LINK: net2phone.com
========
Phonebridge
========
For about US$100, you can get a hardware plug-in for Internet phone
calls that works with any phone software and your PC sound card. It
uses a regular or a cordless phone and allows free calls to any US
phone.
INFO LINK: phonebridge.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
Copyright (c) 2000. All domestic & international rights reserved.
==================================================
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