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OFFSHORE INVESTORS
Are you interested in finding out more about the world's
leading financial centers? Do you want to learn about the tax laws
governing foreign investment by US taxpayers? Tom Azzara,
the author of "TAX Havens of
the World" (300 pages) and The Tax Haven Reporter, is based in Nassau,
Bahamas, and has been reading and writing about tax havens and tax laws
for 20 years. Both publications have been in continuous
production since 1985.
Over the last 15 years, Tom has
registered more than 1,300
International Business Companies (IBCs) in the Caribbean. Anguilla is an ideal tax-free haven for foreign and Americans alike. Offshore banks and offshore companies can trade in the US stock market free of capital gains taxes under the Statutory US tax Code. An IBC can receive US Bank CD interest or treasury bond interest 100% free from all taxes - US and other. Americans who live offshore more than 330 days of the year can exclude up to $80,000 in foreign earned income (i.e., salary) too.
Beginning in 2001, we began forming IBCs out of the Crown Colony/Overseas Territory and no tax haven of
Anguilla - 150 miles east of
Puerto Rico. The Anguilla IBC Ordinance of 2,000 has some distinct
advantages over the new Bahamas IBC ACT, 2,000. Call me at 514-667-7068,
and we'll discuss with you what they are!
We've formed more than 290 Anguillian IBCs since the beginning of 2001, as many clients prefer the less overregulated legislation in this British overseas territory.
Have you visited
Anguilla? It's beautiful, and no traffic jams - ever!
| The Confidential Relationships
Ordinance 1981
"tax offences cannot be investigated"
quote the government of Anguilla (1-1-2001)
Like Montserrat’s Confidentiality Ordinance
of 1985, Anguilla’s Confidential Relationships Ordinance
1981 provides stringent penalties for the improper release
of confidential information, whether by private individuals
or public officials.
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Corporate Tax Rates:
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1985
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2002
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| Bermuda |
0%
|
0%
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| Cayman Islands* |
0%
|
0%
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| Channel Islands* |
0%
|
0%
|
| Isle of Man* |
0%
|
0%
|
| Barbados** |
1-2.5%
|
1-2.5%
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| Vanuatu* |
0%
|
0%
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| Bahamas** |
0%
|
0%
|
| British Virgin Islands** |
0%
|
0%
|
| Anguilla** |
0%
|
0%
|
| Nevis** |
0%
|
0%
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| Hong Kong ¢FFGU |
0%
|
0%
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| Panama ¢FFGU |
0%
|
0%
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| Gibraltar ¢FFGU* |
0%
|
0%
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* "Exempted Companies"
** "International Business Corporations" (IBC)
¢FFGU no tax on "foreign source incomes"
Source: Tax Haven Reporter (2002)
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WEALTH
MANAGEMENT for large estates
Some
financial plans are better than others.
If you had to reduce a client's taxable estate from $1billion
to $50 million (legally - using the estate and tax code
limits), could you do it?
I've been reading and writing about tax havens for 20 years.
I can do it.
Questions? Call me at 514-667-7068 with your questions.
- 9AM to 5PM - New York time zone is best.
FEES are Fully Deductible: My
fee to lead any billionaire/centimillionaire to
a family estate tax savings of $500,000,000
(more or less) starts at $50,000 (no refunds - and
no turning back once he commits). This $50,000 fee
is deductible by the billionaire/millionaire.
There
is another allowable fee related tax deduction. This
is based on the "total
dollars" moved in the transfer - i.e., 1%
of $100,000,000 = $1,000.000
The $1,000,000
is deductible by the US client after filing
Form 926 and W-9 with the IRS. The IRS will
not disallow these deductions.
About Fees: Tax free to our offshore firm
because it has no offices in the USA (that's more US tax law!) - and does
no business within the US.
Both fees mentioned
above are fully deductible by the billionaire
against his personal income taxes in
the year they are paid.
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Revenue
Canada's library purchased a copy of Tax Havens of the
World (8th edition/2003) direct from me the last week of July,
and then faxed my invoice to me and said their check was in the
mail. Order above from this site.
"One of the most effective applications
of offshore trusts is in an ownership combination with a limited
company." - Richard Graham-Taylor, partner Ernst & Young,
Grand Cayman (January 1990)
Offshore
Discretionary trusts for American taxpayers???
EXTRA...Foreign
Trusts in tax havens? Better be careful.
IR Code/Section 679 (Foreign Trusts with
US Beneficiaries). If you are an American taxpayer beware the
tax consequences of any foreign trust formed by any bank or trust
company in any tax haven.
You
could be very sorry some day.
An
irrevocable foreign trust with US beneficiaries is taxable at
rates as high as 80% on accumulated distributions - and the settlor
is taxable annually on the trust income.
Offshore
banks draft beautifully written discretionary trust deeds for
their clients, charge annual fees of 1% or more, and you'll get
"bit" hard by the IRS, if they find out about it. Telling
the tax court you are not the settlor of a foreign trust is perjury.
http://www.fourmilab.ch/ustax/www/t26-A-1-J-I-E-679.html
http://www.irs.gov/businesses/small/article/0,,id=106540,00.html
http://www.irs.ustreas.gov/individuals/article/0,,id=96944,00.html
http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?&c=ecfr&tpl=/ecfrbrowse/Title26/26tab_02.tpl
http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=80dd28eb5ae149c7d33e8614f937ab05&rgn=div8&view=text&node=26:8.0.1.1.1.0.10.193&idno=26
http://a257.g.akamaitech.net/7/257/2422/12feb20041500/edocket.access.gpo.gov/cfr_2004/aprqtr/26cfr1.679-2.htm
Below
are some reviews and citations!
From:
Date: 06/01/04 15:07:40
To: taxman@batelnet.bs
Subject: Off-shore planning
Hi Tom!
I'm an MBA student at Cornell with a background in law and international
affairs. I read your book ("Tax Havens") and found it
to be a great read. I am interested in opportunities in offshore
planning, and hope that you will e-mail me so that we can begin
a discourse on the matter.
Thanks so much! Larken
Larken R. Proper
Risk
Management Consultant
Mr. Proper has over six
years experience with financial firms including Merrill Lynch and
Salomon Smith Barney in the areas of equity research, middle markets
and private client. Mr. Proper attended law school at the University
of Pennsylvania and Duke University, the MBA program at Cornell
University Johnson Graduate School of Management, graduate school
at Columbia University (MIA, International Finance), and completed
his undergraduate work at the University of Pittsburgh (BS, BA)
where he was a Chancellor's Fellow at the University Honors College.
I
looked Mr. Proper's credentials up on the Internet from his original
e-mail. His real name is not "Proper"
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About Tom Azzara...
4 time NY State gold medalist (Swimming) - in State Championship meet.
1 time HS All-American as anchorman on fastest 200 yard freestyle relay (4 guys).
The whole relay made the All-American list. Beat every California team by time.
This relay went faster than every HS (Schoolboy) relay in the entire world (Soviet and E. Germans, Britain, etc.), and was faster than Mark Spitz's HS relay time (7 Olympic Gold Medals) and Don Scholander's HS relay time (5 Olympic Golds - Yale Scholarship) - with them as anchormen.
I swam on this 200 yard freestyle relay in the NY State Championship meet 4 times - getting the gold three times.
Anchorman two times.
Two weeks after breaking the American record for "Schoolboys" - a HS in Chicago (Hindsdale) shattered our time.
We were not well liked when we came in to town.
Age 57 - picture taken few years ago.
100 pound Yellow fin Tuna.
"Tongue of the Ocean" - water depth 6000 feet.... 10 miles offshore... Nassau, Bahamas (home)
Other "Schooling"
College level - Ohio State University (Witness to over 100,000 fans at a college home football game. Are football fans nuts?)
55,000 students - OSU
Large wash out from this fine University with more money than most businesses in the State of New York.
Very good arts and science university.
Most people could go to a lesser school - get their degree - and never graduate from OSU - taking the same.
Only graduate 5% or 10% of 55,000.
College level calculus OSU - 4 quarters.
Think you could get through this?
Physics, Chemistry (3 hour labs - twice a week)
drop out.
USAF - honorable discharge.
1992 - founder of small offshore consulting firm with revenues that averaged over $400,000 annually (and go untaxed - because "services" are performed outside the US).
Tax law speciality.
Incorporations in Caribbean Anguilla.
Also trust deeds.
20 years experience total.
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Manhattan Prosecutor Criticizes Caymans Tax Pact
By DAVID CAY JOHNSTON - December 8, 2001 New York Times
"Federal Reserve data show that $800 billion is being held in Cayman Islands accounts for Americans, an amount equal to roughly one-third of all domestic bank deposits."
Robert M. Morgenthau, the Manhattan district attorney, is critical of the agreement that Treasury Secretary Paul H. O'Neill signed last week with the Cayman Islands to share information that would help the United States track down suspected income tax evaders, calling it "a sham."
Manhattan District Attorney Robert Morgenthau told senators a few years ago that about $800 billion in U.S. dollars is on deposit at some 600 banks licensed in the Cayman Islands -- more than twice the amount deposited in all New York City banks combined.
THR Editor’s Note: In 1988 the Cayman government released a chart showing what countries were the biggest investor in the Cayman Islands (banks). The United States led all other countries with a percentile that was over 60%. Canada and the UK combined did not have more money invested in Cayman than Americans did.
EXTRA! Enron, it is said, had approximately 600 subsidiaries registered in Cayman. None of them were listed in the local telephone directory and it is likely that they comprised little more than pieces of paper in filing cabinets at the offices of the Cayman law firm of Hunter & Hunter, which provided registered agent services to Enron.
Source: Offshore Alert (2-11-2002)(email "FlashNews")
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(P.O. Box CB 11552 o Nassau o Bahamas o tel/fax 514-667-7068)
http://www.bahamasbahamas.com/ o email: taxman@batelnet.bs
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Pursuant to Internal Revenue Service guidance, be advised that any federal tax advice in this communication, including any attachments or enclosures, was not intended or written to be used, and it cannot be used, by any person or entity for the purpose of avoiding penalties imposed under the Internal Revenue Code. |
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