Recently in Tax Havens Category

Safe Swiss Passage

Swiss reporter Myret Zaki, who sacrificed three months' salary to probe the UBS financial scandal, was both prophetic and cryptic. "India will never get to know the names of those having accounts in banks across Switzerland. New Delhi has neither the will, nor the clout," Zaki told TEHELKA. "You have to be very rich to investigate," she said in her presentation. On the German Swiss side, Lukas Haessig also investigated UBS as a freelance reporter. But after several months of looking for a book deal, he ended up writing for a publisher on the global financial crisis -- not the actual UBS mess. "Banks love secrecy," says Haessig.

http://www.tehelka.com/story_main44.asp?filename=Bu080510Safe_Swiss.asp

Americans Seeking Reward Money Inform IRS on Others

Americans seeking reward money are turning in neighbors, clients and employers they suspect of cheating on taxes to the IRS at a rate of nearly eight per day, the director of the agency's whistleblower program said. "Right after we got the new law" containing the minimum award, "the fax machine was running the next day," Whitlock told the Offshore Alert Financial Due Diligence Conference. The rate of submissions is on pace to eclipse the 476 applications filed in 2008, a number that was four times the previous year. Whitlock said the submissions have "stabilized."

http://www.businessweek.com/news/2010-05-04/americans-seeking-reward-money-inform-irs-on-others-update2-.html

I-T asks IPL franchisees to reveal details of offshore stakeholders

The I-T authorities, probing the ownership details of the Indian Premier League (IPL) teams, have asked the owners of the teams to disclose details of offshore companies who have a stake in these teams. Though the team owners claim these offshore companies are legitimate, the I-T authorities suspect that atleast some of them had been set up just a year ago or less. "Some of them may be table companies, with just a table and a chair duplicating as offices," said a senior I-T officer.

http://economictimes.indiatimes.com/news/politics/nation/I-T-asks-IPL-franchisees-to-reveal-details-of-offshore-stakeholders/articleshow/5878680.cms

Offshore Savings Accounts Can Offer Valuable Tax Savings

ST PETER PORT, Guernsey, April 30, 2010 - Each year, according to the Institute of Public Policy Research (IPPR), around 400,000 UK nationals move abroad to work or retire. Opening an offshore savings account could bring significant tax benefits once they cease being UK residents for tax purposes.

Firstly, let's get rid of the age old myth that offshore banking is just for the super-rich or super-sophisticated. As Jim Coupe, commercial director, for Skipton International (www.skiptoninternational.com/) in Guernsey comments, "This is just not the case in today's offshore financial environment where choice of product, competitive rates and tight regulations in offshore centres such as Guernsey make it an attractive marketplace for all types of expatriates. With many familiar names in the offshore financial environment such as Skipton International (www.skiptoninternational.com/) Limited, and of course all the main UK high street clearing banks, there is a wide range of products to choose from to suit every facet of expatriate life - from easy access deposit accounts, sterling higher interest notice products and euro or US dollar savings accounts. With minimum opening balances starting at GBP10,000 in many cases, this is not a market the ordinary saver needs to feel excluded from"

For many expatriates the type of banking relationship they are going to need during their time abroad is often not available or not appropriate from the UK high street. Expat customers tend to be retiring with capital, on short-term placements for career development or perhaps on a more attractive salary package (but possibly not the lavish salaries of previous years). Their needs are therefore different and require a different approach. Working expats will firstly be looking for a safe home for sterling or a safe place to deposit foreign earnings. International expatriates will be looking for flexibility and accessibility to match their global lifestyle, while others will be looking for tax planning advantages. Those who are retired will be looking for ways to generate a greater return on their savings, perhaps with a notice account or a fixed term bond.

Judge says Trio fraud

INVESTORS with $123 million in an offshore fund managed by Trio Capital have almost certainly been victims of a ''fraudulent scam'', a NSW Supreme Court judge ruled yesterday. Justice George Palmer detailed ''vices'' in Trio's business and ruled it was in the public interest to wind up five schemes that it managed, including the controversial fund Astarra Strategic. He was scathing about Astarra's use of tax havens in the British Virgin Islands, Anguilla, St Lucia, the Cayman Islands, Belize, the Cook Islands and Nevis. More than $400 million invested in Trio has been frozen since October, when fears were raised that the $123 million invested in Astarra was the subject of a Ponzi scheme.

http://www.smh.com.au/business/judge-says-trio-fraud-20100416-skin.html

Seven Ex-UBS Clients Accused by U.S. of Tax Crimes

Seven former UBS AG clients, including two who pleaded guilty, were accused of collectively hiding more than $100 million from the Internal Revenue Service as the U.S. extends its crackdown on offshore tax evasion. U.S. prosecutors in New York today released indictments against Shmuel Sternfeld, Sybil Nancy Upham, Ernest Vogliano and Richard Werdiger, as well as a criminal complaint against Kenneth Heller. Federico Hernandez, 44, and Jules Robbins pleaded guilty today in federal court in New York. Upham, 72, and Werdiger, 62, pleaded not guilty to their indictments.

http://www.businessweek.com/news/2010-04-15/u-s-announces-multiple-tax-prosecutions-in-manhattan-court.html

OECD crackdown on tax havens seen lacking teeth

Over the past year, the number of countries on an Organization for Economic Cooperation and Development "gray list" of tax havens that have not fully implemented internationally agreed upon tax standards has dropped to 17 from more than 40. But some say the havens are getting off lightly, and that it is more or less business as usual. For starters, they say the number of TIEAs a country needs to sign to get off the "gray list" list is far too low at 12. In addition, the countries tax havens sign with may have little money moving offshore. Take the example of the Bahamas, a balmy Atlantic archipelago and international financial center that is home to more than 250 licensed bank and trust companies. It moved off the OECD "gray list" in March after signing 18 TIEAs, surpassing the 12 required bilateral agreements. These included TIEAs with the "Nordic Seven," which include Sweden and Norway, but also Greenland and the Faroes Islands.

http://www.reuters.com/article/idUSTRE63H2BI20100418

Now we know the truth. The financial meltdown wasn't a mistake - it was a con

The global financial crisis, it is now clear, was caused not just by the bankers' colossal mismanagement. No, it was due also to the new financial complexity offering up the opportunity for widespread, systemic fraud. Friday's announcement that the world's most famous investment bank, Goldman Sachs, is to face civil charges for fraud brought by the American regulator is but the latest of a series of investigations that have been launched, arrests made and charges made against financial institutions around the world. Big Finance in the 21st century turns out to have been Big Fraud. Yet Britain, centre of the world financial system,

http://www.guardian.co.uk/business/2010/apr/18/goldman-sachs-regulators-civil-charges

Bloomberg's Offshore Millions

It was a dark time for the city. In 2008, and early into the next year, morale was low, Wall Street was sputtering and Mayor Michael Bloomberg was steeling New Yorkers for pain. Brace for service cuts and tax hikes, he warned--while also pledging to find a way to keep tax money, particularly from the city's richest citizens, from fleeing. "I've said this before, but the first rule of taxation is, you can't tax too much those that can move," Mr. Bloomberg intoned on a radio show late in the crisis. "You know, we're yelling and screaming about the rich. We want the rich from around this county to move here. We love the rich people."

http://www.observer.com/2010/politics/bloomberg%E2%80%99s-offshore-millions

National Bank of Abu Dhabi Added to Sponsor Roster for Next Week's Latin America Mid-East Investors Forum in Abu Dhabi

ABU DHABI, United Arab Emirates, April 21, 2010 - The National Bank of Abu Dhabi is the newest sponsor of next week's Latin America Mid-East Investors Forum, a move that reinforces the growing bond between Latin America and the Middle East in a number of areas including agribusiness, real estate, infrastructure, oil, renewables and more.

The Forum takes place this coming Monday and Tuesday, April 26th and 27th, at the Fairmont Bab Al Bahr in Abu Dhabi, and features senior-level executives from Latin America's corporate and investment community, as well as public sector leaders such as the Brazilian Development Bank (BNDES) and the head of Public Credit for the Republic of Mexico.

Registration to the forum is nearly full, with a few seats left for qualified institutional investors representing SWFs, family offices, asset managers, private equity and direct investors, and high-net worth retail investors. Registration for these delegates is free of charge and must be confirmed before the event starts.

Press is also invited to attend and cover the event at no cost. Visit www.latinfinance.com/la-meif or contact Alex Rubin on
arubin@latinfinance.com, +1-305-357-4216, to register.

UBS Client Pleads Guilty to Tax Fraud

A wealthy client of the Swiss bank UBS pleaded guilty on Monday to tax fraud, the ninth American caught up in an investigation of the bank's offshore private banking services, The New York Times's Lynnley Browning reports. The bank client, Harry Abrahamsen, of Oradell, N.J., pleaded guilty in Federal District Court in Newark to one count of failing to file proper disclosures on his UBS offshore accounts with the Internal Revenue Service, according to court papers filed in the case.

According to court papers, Mr. Abrahamsen used a sham offshore corporation in Panama known as Primrose Properties S.A. to help hide his UBS accounts.

http://dealbook.blogs.nytimes.com/

BVI residents defrauded; Anguilla native charged for allegedly operating pyramid scheme

A former BVI resident has been charged in the United States for running fraudulent pyramid schemes which have defrauded several BVI and USVI residents of more than $3 million. Janice Dorette Rey, 48, a native of Anguilla, was arrested by U.S. Marshalls in February 2010, a press release from the Financial Investigation Agency (FIA) has stated. Rey is now in custody in the United States awaiting trial for various offences relating to fraud, in which she is accused of operating a pyramid scheme titled "Global Cohesive Economics (GCE)" which was used to defraud several BVI residents, the FIA states.

http://bvinews.com/?p=1989

Holders Of Swiss Bank Accounts Should Not Be Branded As Criminals

Julius Baer chairman Raymond Baer has hit out at criticism of Swiss private banking, saying clients of the banks in the Alpine state should not be treated as potential criminals, responding to mounting pressure on the country's bank secrecy laws. "In recent years, virtually no new untaxed European money has flowed into Switzerland," Baer says in a speech to shareholders, according to Dow Jones, citing the text of prepared remarks.

"Swiss bank-client confidentiality, as we have known it, does not exist any longer," Baer said. He also urges European Union member states to "not slam doors on those who are seeking a path to full tax compliance".

www.wealthbriefing.com

A new report provides detailed analysis of the Finance and Banking market

This report introduces Datamonitor's proprietary Tax Amnesty Assessment Index. It is a quantifiable assessment framework of 15 criteria, grouped within five critical amnesty conditions, that can be used by offshore banks to determine the likely impact of any announced amnesty on their assets under management.

Scope

*Presents findings of our Offshore Banks Survey 2010 covering Jersey, Guernsey, Isle of Man, Switzerland, Hong Kong and Singapore

*Introduces our proprietary Tax Amnesty Assessment Index, allowing offshore banks to analyze the impact of any future tax amnesty

*Assesses the success (or failure) factors in four amnesties: US, UK, Italy and Australia

*Identifies 15 critical criteria that make an amnesty a threat to offshore business

Highlights

Nearly 70% of Channel Islands/ Isle of Man's offshore client base is domiciled in Western Europe (and around half are based just in the UK), which is a legacy of the strength of the UK banks in those centres. However this means that these centers risk losing a significant amount of business to a successful UK amnesty.

In Jersey, Guernsey and Isle of Man it is the UK government's future plans that are making banks nervous, because of the reliance they have on UK domiciled clients. And this same reliance on a single country (Germany) is causing banks in Switzerland to keep a close eye on developments there.

Some countries' clients fear for the safety of their wealth rather than their personal safety. This was confirmed by Datamonitor's Offshore Banks Survey, where more than 40% of Swiss respondents cited "They feel their money is safer offshore" as a main reason for clients to put money outside their domicile.

When you want to invest in the Cayman Islands, the place that you should be contacting is the Chamber of Commerce, as this is the best center to get any kind of business related information. This island has been a favorite spot for most business ventures for a long time now, since it has many potentials for investing in a Cayman Company.

There are many options to choose from in the Caymans, whether you want to invest in real estate, mutual funds or perhaps a business partnership, as any investments done on this island would be a lucrative venture. It is said, that investments flourish on this island simply because of the expansion in the population and the tourism industry.

In addition, there are also some key factors such as:

The stability in the government; the strong economic climate based on tourism; the intercontinental banking options and also the cutting edge national infrastructure.

The fact that investors would not have to pay the local taxation, such as capital gains, non-resident tax, income tax or any other comparable taxes that you will find in Cayman.

There are absolutely no restrictions on investors in regards to purchases.

There is maximum privacy and the investors don't have to worry about reporting earnings or ownerships to the government agencies.

Anxious US Taxpayers Who Disclosed Foreign Bank Accounts and Await Their Call From the IRS Need to Decide Whether to Accept the "Offshore" Penalty or Withdraw From the Program, Says Marks Paneth & Shron Director and Former IRS Special Agent The Call From the IRS Will Come; Once It Does, US Taxpayers Must Make Tough Decisions About Whether to Accept the 20% Offshore Penalty or Dispute It by Showing "Non-Willful" Failure to File an FBAR via an Audit, Says David Gannaway.

US taxpayers who disclosed their foreign bank accounts under the government's Offshore Voluntary Disclosure Program are growing anxious as they wait to hear from tax authorities.

But instead of worrying about whether the call from the IRS will come, they should be more concerned with the decisions they'll have to make once they're contacted, says David Gannaway, a former IRS special agent with the Criminal Investigation Division who is now a Director in the Litigation and Corporate Financial Advisory Services Group at New York accounting firm Marks Paneth & Shron LL.

According to Mr. Gannaway, anxiety is mounting among the more than 15,000 US taxpayers who submitted applications before the October 15, 2009 deadline and who complied with the Information Document Request due on January 15, 2010. "The IRS is working through its backlog of cases," Mr. Gannaway says. "US taxpayers can rest assured that they will hear from the IRS in due course."

"What they need to be concerned about is the decision they'll have to make once the IRS does call -- should they accept the standardized penalty, or contest it by asking for an audit. An audit can be difficult and time consuming, but it could drastically lower the 20 percent 'offshore' penalty amount that taxpayers will have to pay," Mr. Gannaway says.

ST HELIER, Jersey, March 31, 2010 - Abbey International is currently celebrating twice over having won the coveted Best International Bank award in this year's Investment International Finance Awards and this week secured a "Best Buy" listing for its popular 18 month fixed rate deposit currently paying 3.57% AER with Moneyfacts, the independent industry monitor (source: Moneyfacts.co.uk). The Investment International awards are amongst the oldest in the offshore banking industry, having been running for some 20 years. Awarded solely from reader votes, over 800 magazine subscribers and website users took took part in the voting which started at the end of November 2009 and ran up until 31st December.

Commenting on the award, Jane Matthews, Head of Client Experience at Abbey International said, "This is an important award for us - we realize that international banking is a fiercely competitive market, so to win an overall award like this, we have had to both offer consistently attractive products and back these up with excellent client service. Now ultimately part of Banco Santander, the largest bank in the euro zone by market capitalization and third in the world by profit, we believe our client offering based around strength, stability and service is a winning combination. Looking to the future in 2010, we are anticipating being able to offer clients an increasingly diverse range of products, reflecting the changing demands of the market, but all built with the same objectives of wealth preservation and wealth creation - supported by our relationship managed service".

In 2009, Abbey International became the first major offshore bank to launch its range of Visa Infinite and Visa Platinum deferred-debit cards which offer a range of lifestyle services and enhanced levels of cover. The bank's product range is evolving as it move towards offering a range of accounts and services which are designed to appeal to a more discerning high net worth client. The Abbey International 18 Month Limited Offer Fixed Rate Deposit Contract has a minimum opening balance of GBP100,000 and is available in sterling only to new and existing clients. Abbey International is part of the highly regarded Santander Group, which has more than 150 years experience in banking and clients all over the world. For further information on banking with Abbey International in Jersey call +44(0)1534-828-828 or log onto www.abbeyinternational.com For media use only and not to be relied on by consumers to make financial decisions.

Swiss banks and Swiss private banking are recognized as the ultimate banking resource for high net worth individuals, used by the rich and famous, sports stars and big corporations. Despite recent attacks on offshore banking in Switzerland, Swiss private bankers still maintain the decades-old reputation for confidentiality and security.

The Swiss cities of Zurich and Geneva are world famous for the private banking services they offer - not to mention many other smaller cities which manage wealth on the scale of global financial centres.

What sets Swiss banking apart?

Its reputation for banking expertise, and of course the bank secrecy law. Swiss bank secrecy, codified into law by the 1934 Swiss banking Act, has ushered billions of dollars into Swiss banks - wealth fleeing from corrupt governments, excessive taxes, and the threat of frivolous litigation