January 6, 2009
O.K., so the headline is not exactly accurate, but it did catch your eye. And if one David Cay Johnston has his perverse way, it would be a statement of fact.
Indeed, Johnston seriously calls for a U.S. declaration of war not only on the Cayman Islands, but also Bermuda and other offshore tax haven. His lengthy radical views are set out in an article (”Fiscal Therapy”) in the Jan-Feb 2009 issue of the leftist magazine, Mother Jones, known for investigative reporting with a decidedly radical slant.
Ordinarily a nutty proposal such as Johnston’s could be laughed off as evidence of a sick sense of humor or an advance mental problem, but Johnston is not your run of the mill left-wing nut.
Prize Winning Radical
In 2001 Johnston won a Pulitzer Prize “for his penetrating and enterprising reporting that exposed loopholes and inequities in the U.S. tax code.”
At the time he was the tax reporter for The New York Times, and now is a columnist for the trade journal, Tax Notes. In 2008 he left The Times after 14 years and since has been hawking books he authored with titles such as his current tome, Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich–and Cheat Everybody Else and the scintillating Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick You With the Bill).
The Liberal Conspiracy
I’ve never held much stock in conspiracy theories, especially as they apply to the American news media and what one might call, the U.S. leftist elite.
These condescending liberals always are certain they know better than the common man. They don’t need to conspire among themselves. Knee jerk liberals know automatically what the leftist party line is at any given moment; big government, more regulation and control, higher taxes, welfare state economics are all second nature to them. Mention an issue and they always parrot the left-wing party line.
Johnston’s Bilge
In 2001 I wrote the following: “In many ways a classic example of this is The New York Times. More particularly, its highly biased ‘reporter,’ David Cay Johnston. I’ve been reading his ‘reporting’ bilge for years and he never misses a chance to dump on people of wealth, U.S. corporations or, his special bete noir, tax havens and the offshore financial world in general.”
At the time in 2001, Johnson was engaged in a multi-article smear against American corporations that legally moved offshore to reduce high U.S. taxes and to increase shareholder equity value and dividends. He twisted facts to claim the true reason for these offshore moves was fattening corporate salaries.
Unfortunately this sort of class warfare is good for sensational, if false, headlines that stir up controversy. Democrats in the U.S. Congress such as Michigan Senator Carl Levin have used the manufactured issue of offshore tax havens to claim Republicans favor “big business” at the expense of that mythical “little man.”
Johnston’s slanted reporting at The Times was a precursor to Senator Barack Obama’s “Stop Tax Haven Abuse Act” S. 681, first introduced in 2007. For more about this proposal see http://baumanblog.sovereignsociety.com/2008/12/levin-sees-quic.html
I’m not going to bore you again with the economics or the facts about tax havens but we should all recognize: 1) the Big Lie for what it is, and; 2) those charlatans who habitually seek to hoodwink the American people into surrendering our financial freedoms.
Johnston’s War
But I’ll let Johnston speak for his radical self. The following is a direct quote from his Mother Jones article - and, based on his past statements, I don’t think he is kidding:
Invade the Caymans
In 1983 just 10% of America’s corporate profits were funneled through places that charge little or no corporate income tax; today more than 25% of profits go through tax havens. The Obama administration could tell the Caymans—now fifth in the world in bank deposits—to repeal its bank secrecy laws or be invaded; since the island nation’s total armed forces consists of about 300 police 
officers, it shouldn’t be hard for technicians and auditors, accompanied by a few Marines, to fly in and seize all the records. Bermuda, which relies on the Royal Navy for its military, could be next, and so on. Long before we get to Switzerland and Luxembourg, their governments should have gotten the message.
Barring gunboat diplomacy (tempting as it is), there is no reason we cannot pass laws to block financial transactions with tax havens or even, Cuba-style, make it a crime for Americans to visit or do business with them without special permission. Congress could declare the hiding of funds a threat to national security and require that anyone with offshore assets disclose them to the irs within 30 days and pay taxes, interest, and penalties within 180 days. For the holdouts, temporary special teams in the IRS and Justice Department could speedily pursue civil or criminal charges.
We tell you all about legal offshore financal centers and tax havens, tax-free banking, investment and legal possibilities in my book, Where To Stash Your Cash Legally: Tax Havens of the World.
Originally posted here.
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January 3, 2009
January 12th has been proclaimed a national holiday in Gibraltar in celebration of a decision by the European Court of First Instance which recently ruled that “The Rock” can remain as the attractive tax haven it has been for decades.
The ruling overturned a decision by the European Commission, trumped up by the high tax EU bureaucrats in Brussels, that argued that Gibraltar, for tax purposes, was nothing more than a part of the United Kingdom. Thus, under EU tax rules that oppose “unfair tax competition,” they claimed that Gibraltar could not continue its low tax regime for foreigners and the thousands of offshore businesses incorporated there. (Even worse than sin, the EU hates low taxes).
1713: British Gain, Spanish Loss
“The Rock,” as it is known worldwide, is the United Kingdom’s only continental European colonial possession, although it is loudly claimed as theirs by Spain. Strategically important at the Straits of Gibraltar at the mouth of the Mediterranean Sea, Gibraltar was ceded to Great Britain by Spain in the 1713 Treaty of Utrecht. Repeated referendums have shown 99% of the Rock’s residents want to remain with the United Kingdom.
Unique Offshore Financial Center
Gibraltar has fashioned itself into a dual purpose residential tax haven for high net worth individuals from around the world – and as a professional base for tax free international business corporations and trusts. It was this status that the tax hungry EU sought to end but which the EU court ruling preserves.
Most of the twenty banks established in Gibraltar are branches of major UK, European or U.S. banks. As of a year ago Gibraltar has 19 insurance companies, 87 trust companies, and 358 licensed financial management and trust companies managing over 2,300 registered trusts.
About 100,000 international business companies have been registered to date by the Gibraltar Registrar of Companies, most of them offshore companies that are either tax-exempt or non-resident. The offshore and local banking sector holds assets of over US$13 billion. Gibraltar imposes no capital gains, wealth, or estate taxes.
When the Organization for Economic and Community Development (OECD) listed low tax Gibraltar on its phony “harmful tax competition” blacklist, the government countered with an “Irish-style” cut in corporate tax rates across the board and defended its statutory banking secrecy. Both the OECD and the European Union attacked Gibraltar’s tax haven status, and Spain joined the critical chorus for its own political purposes.
Court Confirms Gibraltar Status
The EU wrongly had claimed that taxes in Gibraltar violated EU rules because it was “regionally selective since it provided for a system under which companies in Gibraltar would be taxed, in general, at a lower rate than those in the United Kingdom.” But the EU court examined whether Gibraltar is a UK territory or a unique territory of its own with the right to choose its own taxes.
The court, in a ruling last month, said that “the competent Gibraltar authorities which have devised the tax reform have, from a constitutional point of view, a political and administrative status separate from that of the central government of the United Kingdom.”
A Place to Consider
We have in the past hesitated to recommend Gibraltar as a tax haven because of the cloud over its future the pending EU case created. But we think Gibraltar’s Chief Minister Peter Caruana is fully justified in his view that this is “a huge and vital victory for Gibraltar.” He added: “A threat to our economic, social, and thus political well being, has, once again, been successfully seen off.”
With it confirmation as an offshore financal center and tax haven, find out more about the tax-free banking, investment and legal possibilities Gibraltar offers in my book, Where To Stash Your Cash Legally: Tax Havens of the World.
Originally posted here.
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January 1, 2009
The "bogeyman" in many cultures is a folkloric or legendary ghostlike monster.
The bogeyman has no specific appearance, and conceptions of the monster can vary drastically even 
among families and communities. In most cases the bogeyman has no clear appearance in the mind of a child, but is an amorphous embodiment of terror.
In a misguided effort to make them behave, less educated parents may threaten their child with the cruel statement that if he or she is naughty, "The bogeyman will get you."
Under My Bed
I don’t know about you, but as a small child, there were times in my darkened bedroom when I was afraid even to look under my bed, lest that feared bogeyman would get me!
And those were in the ancient days when there was no mind screwing television, only The Inner Sanctum and a few other shows on the radio, that created mythical characters that were feared in the mind’s eye.
During the era of old time radio, I recall The Inner Sanctum, and its host "Raymond," (he with the creepy voice and squeaking door), a show that gave us listeners grizzly tales of murder and madness, evoking enough chills to keep us breathless. It was a tightly formatted show with horror and suspense designed to keep you on the edge of your chair or holding tightly to your sheets if you were listening just before bedtime. It featured spine-tingling stories of ghosts, murderers, lunatics, vampires, wolf men, zombies and man-eating plants.
Just right for creating that bogeyman under my little bed.
Bigger, Better Bogeymen
But, as the more observant well know, the bogeyman concept can be used metaphorically to demonize persons, whole groups, or things in a conscious effort to promote irrational fears in the minds of the less informed.
Thus the Jews became Hitler’s bogeyman — and in the world of the U.S. Internal Revenue Service, the leftist media and big spending politicians such as U.S. Senator Carl Levin (D-MI), "offshore" is a major bogeyman.
The political Left never misses a chance to put forth new explanations as to why individual Americans and business banking, investing and engaging in financial activity offshore must be suspected of crimes and tax evasion, (notwithstanding that it is legal to conduct all such activities).
I often quote (and will here again) a United States assistant attorney general during the Clinton administration that I heard tell an audience that at the U.S. Justice Department the policy was to assume that any and all offshore financial activity was probably illegal. (So much for the constitutional presumption of innocence!)
The Madoff Offshore Bogeyman
In the last 25 years the IRS and leftist politicians, hungry for ever more tax revenues, regularly have trotted out one after another reason as to why "going offshore" financially was wrong, immoral and, probably fattening. Tax havens in particular became the focus of their attacks.
First it was the excuse of the (now failed) "war on drugs" since drug kingpins were alleged to be hiding millions offshore. No proof was offered. Then, after the 9-11, 2001 terror attacks, the attacking terrorists’ cash was said to be hidden offshore — a claim absolutely disproved subsequently. Then it was the Enron scandal, the Parmalat bankruptcy, the Liechtenstein bank records theft, and now comes the latest of this dubious string of anti-offshore attacks.
You guessed it — now the evil Bernie Madoff is the latest trumped up "proof" that offshore is evil.
The Usual Suspects
The New York Times
reports (Dec. 30 that: "The investigations into Bernard L. Madoff are expanding into offshore tax havens. Federal 
prosecutors are beginning to consider what role offshore fund operations may have played in the $50 billion Ponzi scheme that Mr. Madoff is accused of orchestrating. Of particular interest is whether Mr. Madoff and some of his investors used funds based in offshore tax havens to evade American taxes, according to a person briefed on the investigation."
Well, folks, most of the decade-long Madoff chicanery and fraud took place onshore right under the nose of a somnolent SEC..
Does that automatically make all domestic American financial activity suspect? (Put aside the fact that, at the moment, all U.S. banks and Wall Street qualify as what Claude Rains’ crafty Inspector Reynaud called in the classic flick Casablanca, "the usual suspects.")
Strictly Legal
Yes, Virginia, for the moment, forget the bogeyman. Obama pending, it still is legal to bank, invest, protect your assets and do business offshore — so take advantage of these freedoms while you still can.
For more information about offshore banking, investing, finances in general and tax havens, see my book, Where To Stash Your Cash, Tax Havens of the World.
Originally posted here.
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January 1, 2009
In “Hamlet” (circa 1601) William Shakespeare sagely noted: “Lord! We know what we are, but we know not what we may be.”
Nevertheless, each New Year’s the world media engages in a mild form of entertainment by attempting to predict events for the next 365 days.
I don’t intend to join their prognostications, except to say, we are likely to suffer more of the same, based on all the current sad indications — more and bigger government, more and bigger taxes, spending, debt and deficits, more and greater depredations against our remaining, but rapidly, diminishing liberties.
How’s that for a cheery 2009 look ahead?
The Chairman’s Wisdom
I am indebted in many ways to my good friend, the Chairman of the Sovereign Society, the noted 
author, Jack Pugsley, but also for the following wisdom which he shared with us on New Year’s Eve a few years ago:
The Sovereign Society was conceived by a group of individuals who shared the conviction that peace and prosperity would be optimized when every individual’s property is rightfully his or hers to keep, control, and dispose of.
Having witnessed over our lifetimes the relentless expansion of government and the concomitant erosion of individual liberties, it was clear to us that the preponderance of aggression against private property did not come from criminals or from foreign nations, but from citizens’ own governments and judicial systems.
As Voltaire summed up the process 240 years ago: “The art of government consists in taking as much money as possible from one party of the citizens to give to the other.”
Most still believe government is a protector, and it grows because people believe it will cure the social ills that plague us. In fact, it is the source of our problems. By restricting individual liberty, by preventing individuals from freely producing and exchanging goods and services, and by taxing and inflating, government has become the source of social conflict.
Sovereign Society Credo
Now in its eleventh year, The Sovereign Society has grown to a membership of nearly 30,000 in many 
countries around the world. The principles around which the Society was conceived are built into its Credo are even more relevant today:
* THAT individual liberty is the highest good in any society;
* THAT every individual has the natural right to keep, control, and dispose of his or her justly acquired property;
* THAT individuals are not the property of the government of the political jurisdiction in which they are born or reside;
* THAT individuals are sovereign unto themselves;
* THAT to whatever extent government interferes with the free exchange of goods or confiscates the property of citizens, it reduces the wealth of the nation;
* THAT when government takes from one to bestow on another, it diminishes the incentive of the first, the integrity of the second, and its own moral authority;
* THAT it is the right and responsibility of each individual to defend justly acquired property from unjust and arbitrary seizure, expropriation, and taxation;
* THAT the goal of The Sovereign Society is to encourage and help individuals achieve and maintain individual sovereignty over their own lives and fortunes.
Join Us
This new year 2009 is one more chance for you and I to fight this oppression and show others the way to a freer, more moral society. We invite you to join us in the struggle for liberty.
Originally posted here.
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December 30, 2008
The descendants of those exiled from Spain during the Spanish Civil War (1936-39) and during the subsequent rule of the late General Francisco Franco may claim Spanish citizenship under legislation that took effect last week.
The Spanish government expects half a million people, many of them living in Latin America, to be eligible for dual citizenship under the new measure, the Spanish newspaper El País reported. Those applying for citizenship must present proof of their parents’ or grandparents’ place and date of birth, according to the web site of the Spanish Justice Ministry.
The government plans to accept applications until December 2010. Those deemed eligible will not have to renounce their other national citizenship, a change from former Spanish law that forbid dual nationality
Dual Nationality
Dual nationality, a topic I frequently write about, simply means that a person legally is a citizen of two countries at the same time, qualified as such under each nation’s law.
Under American law this dual status may result automatically, as when a child born in a foreign country to a U.S. citizen becomes both a U.S. citizen and a citizen of the country where he or she is born. Or it may result from operation of law, as when a U.S. citizen acquires foreign citizenship by marriage to a spouse from another nation, or a foreign person naturalized as a U.S. citizen retains the citizenship of their country of birth.
Contrary to popular belief, Americans don’t have to give up their U.S. citizenship or surrender their passport if they acquire a second citizenship. U.S. law and Supreme Court decisions support the right of an American to enjoy dual citizenship.
Historic Controversy
The new Spanish citizenship law covers the period from July 18, 1936, to Dec. 31, 1955, which includes the Spanish Civil War from 1936 to 1939 and the first decades of Franco’s rule which ended with his death in 1975.
The act is part of the “law of historical memory,” a controversial law passed last year by the Socialist government of Prime Minister José Luis Rodríguez Zapatero aimed at encouraging Spain to resolve issues from its bloody 20th-century history. Many Spaniards oppose the law as a needless stirring up of old animosities.
This new law could produce many applicants because Spain is a member of the European Union. That means acquiring Spanish citizenship allows a person to live, work and travel in any of the 27 EU nations, giving them a free run of the continent.
Tough Older Laws
The new law is a departure from much stricter Spanish naturalization law.
Prior to this exception citizenship by naturalization could only be acquired with difficulty. Persons with no ties to Spain had to reside in the country for at least 10 years.
Persons who were nationals of Portugal, the Philippines, or certain South American countries need only reside for two years, a back door approach to quicker citizenship.
Persons who were born in Spain, who married a citizen of Spain, or who were born outside of Spain of a mother or father who was originally Spanish, needed only to reside in Spain one year before being eligible fort citizenship. These laws remain in effect.
The new law also creates an exception to the existing Spanish prohibition against dual citizenship.
Spanish law requires most naturalization applicants to renounce their existing citizenship and to swear an oath of allegiance to Spain. Dual nationality is recognized only if the applicant’s home nation has a dual nationality treaty with Spain. Currently, such treaties exist with Chile, Peru, Paraguay, Nicaragua, Guatemala, Bolivia, Ecuador, Costa Rica, Honduras, the Dominican Republic, Argentina, Colombia, and Venezuela. Those of Spanish-Jewish descent were also allowed to hold dual nationality.
Other Nations Grant Exceptions
The changes in Spanish law adds a new political category to the exceptional qualifications for obtaining citizenship imposed by some other nations.
For example, one also can secure dual citizenship and a second passport based on ancestry if your parents or grandparents were born in nations such as Ireland, Italy, Poland, Lithuania or even the United Kingdom. Jews are allowed to obtain Israeli citizenship based on their religion.
If one can afford it, one can also secure an immediate second citizenship (at a high price) from the only two nations that still offer “economic citizenship” — the Commonwealth of Dominica and St. Kitts and Nevis, both in the Caribbean area.
The Passport Book
If you want to know more about dual citizenship and second passports, you can read all about them and scores of countries in The Passport Book which I authored, now in its sixth edition. Click here to learn more.
Originally posted here.
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December 30, 2008
As we at the Sovereign Society have been telling folks for over ten years now, if you have wealth, you need wealth protection.
And procrastination can steal more than your time - it can destroy your wealth. So act today. Just a few simple steps - plus some offshore advantages - can ensure that your hard-earned assets remain yours and can be passed on to your family and loved ones.
And, for Americans, these steps are especially important to consider now, with the likelihood of drastic tax and law changes coming under an Obama government.
1) Keep a low profile.
Owning assets in your own name too often is like throwing chum in the water for the circling schools of sharks — lawsuit-happy lawyers and litigants. If people think you’re rich, your chance of being sued skyrockets.
One way to lower your profile is not to title your assets directly in your own name. Instead, use a privacy-protected offshore corporation, family foundation or an asset protection trust (APT) to hold title. In many places such ownership is not a matter of public record.
2) Shrink the target. Let’s say you own a number of rental properties. A tenant slips and falls at one of these places and decides to sue you. Unless you take precautions, total damages could amount to the value of all your rental properties. Whether it’s a rental property, a restaurant, or something else, segregate risks - consider creating a separate corporate entity for each liability generating asset. Especially, never mix large liability-generating assets. For example, an apartment house should not be owned by the same company that owns a trucking company.
3) Going offshore adds a strong layer of protection. Whether it’s in a Swiss or Liechtenstein life insurance wrapper, retirement annuity or an Isle of Man or Panama asset protection trust, placing your assets offshore puts them out of reach of most frivolous lawsuits. Even litigants with an ax to grind usually are ready to settle for pennies on the dollar when they find out how difficult it is to locate and collect your money offshore.
For example, if you place your 401k or other retirement plan in a suitable jurisdiction - Panama or Switzerland, for instance - it can be configured to be essentially claim and judgment proof, plus it is covered by strict financial privacy laws that are non-existent in the United States.
4) Get Good Advice. Avoid pushy domestic and offshore hucksters - the ones claiming falsely that you can lower your tax bill to zero if you just put all your money in their "pure trust," a "constitutional trust" or a "corporation sole." Well, you might not pay any taxes, but only because these hood winkers will take all your money and run with it. And you could go to jail.
And avoid those Bernie Madoff types who promise you the moon on investment returns. The rule is - if it sounds too good to be true, then it is too good to be true.
Always work with carefully vetted bankers, investment advisors, financial experts, and legal professionals from select tax and asset haven jurisdictions. Always check references and do your due diligence homework on a service provider before sending them a single penny. Asks us if you want recommendations for good, solid contacts.
5) Pass on your legacy with an offshore trust. In most cases, while an offshore trust will protect your assets, it won’t reduce your U.S. tax bill. However, an offshore trust can incorporate provisions that can reduce future estate tax liability. It can protect your wealth, notwithstanding efforts by the U.S. or other governments, to discourage legal offshore financial transactions and investments.
Frivolous litigation, expensive legal defense costs, outrageous jury awards, and government privacy invasions and asset forfeiture all create an urgent need to protect your family and business wealth. An APT can do all that and more.
6) File all returns and reports. certain path to asset loss is ignoring U.S. tax filing and reporting requirements or giving inaccurate or partial information. Get a good CPA who knows the reporting and other rules.
Almost every nation now has "know your customer" laws that require bank account applicants to prove their identity, the source of their funds and their life story. Cash transfers of US$10,000 or more are reported electronically to the U.S. government. U.S. persons, on their IRS Form 1040, must say if they have an offshore account, and if activity therein exceeds US$10,000 an annual U.S. Treasury Form TD F 90-22.1 must be filed. Lying or failure to file these reports are separate felonies.
We at the Sovereign Society can and will help you with all of the above (and more) asset protection devices. Our executive director, Erika Nolan, myself and our Sovereign Society editors often have visited many tax and asset protection havens. We’ve made strong banking, legal, trust and other professional contacts that are useful to our members with offshore business and financial interests.
That’s another good reason why you should protect yourself and your wealth by joining this unique organization that, for more than a decade, has shown the way for sound offshore banking, prudent investing and real financial peace of mind — the Sovereign Society.
Originally posted here.
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December 29, 2008
For the ten years of our existence, the following has been our Christmas Day A-Letter editorial. The comment is by SAINT LUKE, the Apostle, (who was not a member of the Sovereign Society Council of Experts) and appears in his Gospel 2:1-20. For myself and for the staff of the Sovereign Society, we wish you a very Merry Christmas and a Happy Hanukkah.
And it came to pass in those days, that there went out a decree from Caesar Augustus that all the world should be taxed. And this taxing was first made when Cyrenius was governor of Syria. And all went to be taxed, every one into his own city.
And Joseph also went up from Galilee, out of the city of Nazareth, into Judea, unto the city of David, which is called Bethlehem; because he was of the house and lineage of David: to be taxed with Mary his espoused wife, being great with child.
And so it was, that, while they were there, the days were accomplished that she should be delivered. And she brought forth her firstborn son, and wrapped him in swaddling clothes, and laid Him in a manger; because there was no room for them in the inn.
And there were in the same country shepherds abiding in the field, keeping watch over their flock by night. And, lo, the angel of the Lord came upon them, and the glory of the Lord hone round about them: and they were sore afraid.
And the angel said unto them, Fear not: for, behold, I bring you good tidings of great joy which shall be to all people. For unto you is born this day in the city of David a Savior, which is Christ the Lord. And this shall be a sign unto you; Ye shall find the babe wrapped in swaddling clothes, lying in a manger.
And suddenly there was with the angel a multitude of the heavenly host praising God, and saying, Glory to God in the highest, and on earth peace, good will toward men.
Originally posted here.
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December 29, 2008
Bloomberg News reports that the government of the Principality of Andorra is opening up investment in resorts and other businesses to foreign investors for the first time in seven centuries.
The rumored goal is to plug a national budget deficit but, in my opinion, this new opening to the world doesn’t means that Andorra is about to change what is arguably the strictest bank secrecy policy in Europe, (a view confirmed by an old friend who has lived there for many years).
In the past part of the government budget has been financed by loans from Andorra???s five commercial banks until rising private defaults curbed this lending.
All Andorran banks now are locally owned and one of their major attractions, especially for foreign depositors, is a bank secrecy law so tight that the country is one of only two in Europe still on the blacklist of the Financial Action Task Force (FATF) of the Organization for Economic and Community Development (OECD), because of their refusal to share tax and other information with other governments. (Monaco is the other one still on the FATF list).
Outside Investment Welcome
Foreigners, previously restricted to owning no more than a third of any Andorran company, can now hold up to 49% in its main industries, including luxury clothing retailers, real- estate developers and ski resorts. They will be able to own 100% of companies in 200 industries the government wants to develop, such as research firms and Internet commerce. Prime Minister Albert Pintat said the government aims to remove all foreign investments restrictions within six years.
Along with lifting this curb on foreign investment, the Andorran government paid the usual lip service of now wanting to be seen as an ???investment haven??? and not a ???tax haven.??? That has become ritual language in a public relations effort to appease the OECD/FATF without really yielding financial privacy. In fact, Andorra levies no taxes on foreign income and, all things considered, is one of the better tax havens in the world. They rely on revenue from about 10 million visitors a year for more than two-thirds of their $4.1 billion economy, less than half the size of Malta???s, the smallest state in the European Union.
Hidden Andorra
Andorra is a tiny, mountainous country of about 83,000 souls???with no taxes, no army and no poverty.
Nestled between Spain and France high in the Pyrenees, this is a residential tax haven for very wealthy foreigners who enjoy winter sports. If you live in this independent nation 20 years you can become a ???privileged citizen??? and enjoy all rights of citizenship except voting. Citizenship may be somewhat difficult, but you can establish immediate residency fairly easily. Just move in and apply for a resident???s card. But you must rent or own property in order to stay.
Andorra consists of 185 square miles. It???s about one-fifth the size of Rhode Island. Andorra???s rugged terrain consists of gorges and narrow valleys surrounded by mountain peaks that rise higher than 9,500 feet above sea level. It is an independent nation-state governed by 28 elected members of the General Council.
Banking Evolution
Over the past 50 years, Andorra has evolved. It???s transformed from being a very poor mountain mini-principality, into a sort of duty-free shopping center with ski resorts and banking secrecy. And it???s all thanks to the growth in purchasing power from the middle class in Catalu??, the neighboring Spanish province. There is no income or estate taxes for anyone living in Andorra.
The banks now require anyone who wants to open an account to appear in person. Lawyers cannot open accounts for them. U.S. persons who reside here are not allowed to have any U.S. securities in their Andorran bank accounts because the banks don???t want to be bothered with excessive time and costs for U.S. reporting and SEC visits. Non-U.S. securities and investments are no problem. There are several banks. The three largest are Credit Andorra, Andbank and Banca Mora.
With political and economic stability, no labor problems, virtually no unemployment, and the lowest crime rate in Europe, remote Andorra could be your safe haven away from the modern world???s problems. But bring warm clothes and plan on driving because the only access is three hours by road from the nearest airports in Barcelona, Spain or Toulouse, France. (A new airport in Andorra le Vella for small planes will be ready sometime next year).
Best Offshore Uses: Quick tax-free residence, duty-free bargains, banking in strict financial privacy, skiing nine months of the year
For more information about Andorra and many other tax havens, see my book, Where To Stash Your Cash, Tax Havens of the World.
Originally posted here.
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December 29, 2008
Singapore may face more political pressure from the United States and other tax hungry welfare countries over its role as an offshore financial center catering to wealthy foreigners, the country's prime minister admitted last week.
Prime Minister Lee Hsien Loong told journalists that U.S. pressure on some European countries to 
loosen banking secrecy laws and open their banks to greater scrutiny may lead to still more European money flowing into Singapore in the short term. "But I expect Singapore to come under pressure too," he said in response to a question on whether pressure on countries such as Switzerland and Liechtenstein will help Singapore.
Singapore's government has previously denied suggestions that the country is or wishes to be known as a tax haven. But it offers tax breaks to foreigners and has adopted strict bank secrecy laws patterned after Switzerland. It has been promoting itself as a rival financial center to Hong Kong to attract banks such as UBS, Credit Suisse, Julius Baer, and Citigroup to manage money for rich local and foreign clients.
Cash Flows to Singapore
"In the past 10 years, a lot of money from outside of Asia has moved to Singapore from Europe, Latin America, the Middle East, Russia and Central Asia," said Edmund Leow, a principal at the law firm of Baker & McKenzie, Wong & Leow in Singapore.
Many of the worlds wealthy have moved from traditional tax havens of the Caribbean, Switzerland and the Channel Islands to Singapore. One of the prime reasons for this movement is pressure in those places from Organization for Economic Co-operation and Development (OECD) member countries, most notably the United States. Local Singapore bankers expect this pressure probably will grow once president-elect Obama takes office in January.
Escape from the EU
In Europe money is being moved out of Switzerland to avoid paying withholding tax on interest income as required by the European Union, even as the EU is calling for more and expanded taxes. In Asia, even in the face of the global recession, huge wealth has been amassed with funds from the region, particularly China, Indonesia and India, and those funds dominate the bulk of Singapore's private banking business.
Singapore's private banking assets under management have grown over the past few years by an average of 20% each year and now are estimated at US$200 billion, according to the Monetary Authority of Singapore (MAS). Private banks have fueled the growth by expanding their wealth management services, most notably in the setting up of trust companies.
Trusts Use Growing
"Unlike the Europeans, Asian clients previously did not have full knowledge of what trusts can do such as the complicated tax structures," said Mr. Leow. "As the trust industry develops, it will not only grow in terms of the number of trusts or customers or assets under management, but also in terms of sophistication." With business from wealthy clients still growing in this English common law jurisdiction, Mr. Leow said Singapore's greatest task would be to manage its clean and well regulated image both at home and abroad.
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Our executive director, Erika Nolan, myself and several Sovereign Society editors have visited 
Singapore. We've made strong banking, legal, trust and other professional contacts that can be useful to our members with Asian business and financial interests.
That???s another good reason why you should protect yourself and your wealth by joining this unique organization that, for more than a decade, has shown the way for sound offshore banking, prudent investing and real financial peace of mind — the Sovereign Society.
Originally posted here.
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December 29, 2008
A leading U.S. financial magazine, Forbes, has taken note of something we’ve been talking about for months — the fact that the Republic of Panama, one of our favorite offshore jurisdictions, so far has escaped the worst impact of the worldwide recession harming other nations.
The Dec. 8th edition of Forbes sees three important factors producing Panama’s seeming immune from the global financial mess.
Construction, Canal & Colon
First, the Panamanian construction sector remains in hyper-growth mode as it has been for several years, even though there are sign the condo fever is waning in Panama City. Forbes notes that U.S. retirees are attracted by the comparatively lower cost of living, the ease of a dollarized economy, the presence of many English-speaking expats and locals and the proximity to the United States.
A second major factor is the Panama Canal widening construction project that is boosting the nation’s economy, the largest infrastructure project in Latin America with a tentative tag price of $5.2 billion. Already underway, the project is pumping money into the local service-based economy, which should easily reach the 7-8% growth in 2009 according to International Monetary Fund projections.
The third important reason for prosperity is the massive income generated by the Colon Free Zone, (second in size only to Hong Kong), representing almost 8% of the Panama economy.
Last year, bilateral trade between the U.S. and Panama totaled $4.1 billion, up by nearly one billion over 2006. One third of Panama’s imports come from the United States, and 36% of its total exports are bound for the United States.
Continuing Boom
Panama’s economy grew by 9.2% in the 3rd quarter over the year ago period, helped by expansion of agriculture, manufacturing and services, the government reported Monday. Between July and September GDP grew to $4.73 billion, up $400 million from the same period in 2007.
Panama’s economy is expected to grow 9.5% in 2008 and at least 7.5% in 2009, as the impact of the consumer slowdown in the United States begins to hit global trade. Transport, including shipping through the country’s famous canal, accounts for about a fifth of Panama’s gross domestic product.
According to the government, other growth sectors continue to flourish including the construction sector, which has transformed Panama City’s skyline into a mass of skyscrapers. In the third quarter, the construction sector grew 28.8% over a year ago, accounting for just over 5% of GDP, but a sign of slowing was shown in a 30% construction decline in September compared to a year ago.
Panama has posted 23 consecutive quarters of economic growth, growing gross domestic product by 11.5% in 2007, which is double the pace of the rest of Latin America and well ahead of the United States. These numbers rival powerhouse China in terms of national GDP growth.
But one veteran local observer urges caution: "I am amazed that they can state that even though the condo bubble appears to be bursting, Panama is doing ‘brilliantly’. When stories like that come out you can be sure things are not as rosy as they would like you to think."
You Can Visit This Leading Offshore Haven Soon
We have long advocated Panama as an excellent offshore tax and asset haven. Since the 1920’s it has adopted business and finance friendly laws and its territorial tax policy imposes no taxes on income earned outside Panama. As the banking hub of Latin America, Panama also offers strong financial privacy and bank secrecy and has no tax treaties with any other nation.
For those who want a "first hand" view of Panama, a special limited number, "Panama Profit Expedition" is planned January 18-24, 2009 by our associate, Opportunity Travel.
You can contact them, email at info@opptravel or phone toll free at 1-800-926-6575 ext. 105, or direct at 1-561-243-6276 ext. 105. For more information click here.
* To learn all about Panama, you need a copy of my special three–part Panama Money Secrets.
Originally posted here.
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At the time he was the tax reporter for The New York Times, and now is a columnist for the trade journal, Tax Notes. In 2008 he left The Times after 14 years and since has been hawking books he authored with titles such as his current tome, Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich–and Cheat Everybody Else and the scintillating Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick You With the Bill).
These condescending liberals always are certain they know better than the common man. They don’t need to conspire among themselves. Knee jerk liberals know automatically what the leftist party line is at any given moment; big government, more regulation and control, higher taxes, welfare state economics are all second nature to them. Mention an issue and they always parrot the left-wing party line.
At the time in 2001, Johnson was engaged in a multi-article smear against American corporations that legally moved offshore to reduce high U.S. taxes and to increase shareholder equity value and dividends. He twisted facts to claim the true reason for these offshore moves was fattening corporate salaries.
officers, it shouldn’t be hard for technicians and auditors, accompanied by a few Marines, to fly in and seize all the records. Bermuda, which relies on the Royal Navy for its military, could be next, and so on. Long before we get to Switzerland and Luxembourg, their governments should have gotten the message.
We tell you all about legal offshore financal centers and tax havens, tax-free banking, investment and legal possibilities in my book, Where To Stash Your Cash Legally: Tax Havens of the World. 
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