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Non-Tech : Shorting with Offshore Accounts -- Ignore unavailable to you. Want to Upgrade?

To: The Street who wrote (10)	2/9/1999 8:49:00 AM
From: Rajiv	Read Replies (2) \| Respond to of 127

Mechanics of Clearing.. If the clearing house is based in Canada and assuming that there are no clients who are long our BB stock XYZ, how does the clearing house maintain its books? If the offshore brokerage firm is using an American clearing house, won't there be frequent buy-ins ? Does this clearing house maintain separate books for its domestic and foreign brokerage clients ? Aren't the SEC rules applicable to the American clearing houses (irrespective of whether the brokerage firm is domestic or foreign)? Regards. Rajiv

To: The Street who wrote (10)	2/16/1999 12:53:00 AM
From: Mark L.	Read Replies (1) \| Respond to of 127

I believe you are talking about Trusts that have the Trustee/Trustor relationship and can be quite expensive and BE VERY UNSAFE for your money. Actually I was talking about a more involved structure. However, I agree that the most important issue is preserving the assets. I believe the structures I've seen are quite safe (or more precisely, the corporations affiliated with the structures have major visibility, liability, and attachable assets); nonetheless, I've not been able to find a structure that is safe and cheap. Also, it appears that these structures may still trigger IRS harassment and audits, even if the IRS won't end up getting a dime. In addition, it looked like reporting the gains and paying the taxes lessens the asset protection value. Finally, as I mentioned in the original message, the money can never be repatriated. Even using it abroad is tricky, since there is so little tie between the individual and the entity. The only thing that works sure-fire is getting hired as a consultant or agent by one of the entities and getting paid a salary--a fully taxable, declarable salary. In other words, paying taxes at an ordinary income rate what might otherwise have gotten preferential capital gains or depreciation treatment. Such a deal! So, all in all, it has not been a fruitful inquiry so far.