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Wednesday, November 30, 2005 - Vol. 7 No. 240
In Today's Letter:
Asset Protection:   Protect Your Assets in Liechtenstein.
Wealth:   Investing or Doing Business Offshore.
Comment:   How to Protect Yourself.
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Asset Protection


Protect Your Assets in Liechtenstein

Liechtenstein's banking and financial secrecy statutes historically have been considered stronger even than those in nearby Switzerland.

The 2000 anti-money laundering laws adopted under FATF pressure did weaken secrecy somewhat, but Liechtenstein still boasts some of the strictest confidentiality statues in the world. While banks must now keep records of true clients' identities, such records are not made public. Secrecy also extends to trustees, lawyers, accountants and to anyone connected to the banking or financial professions. All involved are subject to the disciplinary powers of Liechtenstein's Upper Court.

A court order is required to release or examine an account holder's bank records. Creditors seeking bank records face a time consuming and costly process. Liechtenstein is not obliged to honor a foreign court's information request. Such requests may be approved if it can be shown that the alleged offense involves a clear violation of local Liechtenstein law.

Wealth/Investments


What You Need to Know Before Investing or Doing Business Offshore...

While investing or doing business offshore is perfectly legal for U.S. citizens and residents, there are a few legal formalities you should keep in mind.

The most important of these is that you are responsible for paying taxes on your worldwide income. In addition, many types of offshore investments are subject to separate reporting requirements. Also, transfers of US$10,000 or more in cash or cash equivalents across U.S. borders must be reported, as well as the formation and funding of a foreign corporation, trust or partnership.

While it's easy to comply with some of these requirements-such as the annual filing of the "foreign bank account reporting" (FBAR) Form TD F 90-22.1, other forms (such as those necessary to report a foreign trust relationship) are more complex. To assist you in complying with these more complex reporting requirements, we recommend the services of a qualified tax attorney.

For further details, please see "IRS and Treasury Reporting Requirements for U.S. Persons with Interests in Foreign Bank, Brokerage and Insurance Accounts or Ownership in Foreign Entities," a Web page prepared by Sovereign Society Tax Advisor Vernon Jacobs, at http://www.offshorepress.com/AICPA .

Comment


How to Protect Yourself.

Dear A-Letter Reader:
Since 9-11, many Americans have begun to learn the need for constant vigilance against the depredations of not only possible terrorists, but by our own US government

Yesterday I talked with a person attending a conference in Florida who related in detail how a neighbor, with whom he had a legal dispute, had "turned him in" to the IRS, alleging he was engaged in tax evasion of some sort. Three years later, after $70,000 in defensive legal fees, this wrongfully person accused was cleared.

Last year it came out that the FBI allowed a person in Boston to be murdered to protect a favored FBI informant and then lied about it; an FBI agent was convicted in this case. The FBI also allowed an innocent man to sit in jail for 20 years in Boston, convicted on false FBI testimony meant to protect FBI informants. And former Atty. Gen., John Ashcroft wanted to deputize every American to spy on every other American in his notorious TIPS proposal that fortunately failed.

To fight for your rights, you must be able to justify every aspect of your lifestyle in writing with carefully kept records. The IRS probably won't catch the drug kingpin raking in millions a year, but a hard-working businessman who communicates with Switzerland too often may be stalked.

If the IRS thinks your lifestyle is unusually expensive for what they perceive to be your social position, you could become the target of an investigation. (IRS agents have been known to skulk around country club parking lots, trying to match suspected tax evaders to luxury vehicle ownership).

The IRS claims to have 1,000 "controlled informants," people who regularly inform on others for pay. Some of them are accountants. (Doesn't that give you a warm fuzzy feeling?) Michael Levine, a retired US Customs and DEA officer, says there are 15,000 informants on the federal payroll. That's not counting the 10,000 casual informants who claim IRS rewards each year for turning in friends and neighbors, many of seeking revenge or settling a score.

Informing is big business. A congressional investigative report revealed that in three recent years, the US Justice Dept. spent $125.6 million paying informants. This huge sum was based on a percentage of the cash and assets seized as a result of the informant's information. Many of these stool pigeons are ex-cons and small-time crooks who made deals with the law to avoid jail time. And some are "jail house informants" seeking to get out by informing on other inmates, truthfully or not.

And these days almost anything government wants to make a crime, they can; money laundering, conspiracy, tax evasion are all terribly elastic concepts.And then there is "terrorism" -- a cover for almost anything government wants to do in secret or otherwise.

Be wary of situations that invite someone with a grudge to turn informer to hurt you. A fired employee or disgruntled ex-spouse may get even by telling lies to a government bureaucrat accusing you of cheating on your taxes or laundering money.

You don't have to be paranoid, but you do need to be careful.

That's the way it looks from here.
Bob Bauman, Editor

PS: You get far greater privacy by going offshore with your assets and even making your home offshore. Find out more by clicking here:LINK: http://www.isecureonline.com/reports/190STHOW/E190FB72/

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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER .
* Bob Bauman, Editor * Daniel Aponte, Jr., Managing Editor,
* Matthew Barrett , E-Commerce Mgr. * Erika Nolan, Publisher.
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The A-Letter provides accurate information on the subject matter covered and advertisements displayed, so far as we can ascertain. We cannot certify the absolute accuracy of referenced articles nor do we necessarily endorse products advertised herein. The Sovereign Society advocates full compliance with all applicable tax and financial reporting laws. All LINKS are operative at time of publication. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed under securities laws to address your particular investment situation.
LEGAL NOTICE: This document is based on SEC filings, current events, interviews, press releases and knowledge gained as financial journalists and may contain errors. Investment decisions should not be based solely on this document. The Sovereign Society expressly forbids its writers from having financial interests in securities they recommend to readers. Sovereign Society, its affiliated entities, employees and agents must wait 24 hours after an initial trade recommendation published on the Internet, or 72 hours after a direct mail publication is sent, before acting on that recommendation.

THE SOVEREIGN SOCIETY Ltd., 5 Catherine St., Waterford, Ireland
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All contents COPYRIGHT 2005 by Sovereign Society Ltd. All rights reserved. Reproduction of all or part of this document in any form is prohibited without express written consent of Sovereign Society. Protected by US copyright laws 17 USC 101 et seq., 18 USC 2319; violations punishable by 5 years imprisonment and/or $250,000 in fines.

 
 
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