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11.30.01. Cayman Islands Surrender. A-Letter.
THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Prosperity & Privacy in the Offshore World
Friday, November 30, 2001 - Vol. 3 No. 94
In This Issue:
* COMMENT: Cayman Islands Surrenders to I.R.S.
* OFFSHORE: Bahamas High Court Major Upset Ruling. St. Vincent Clean Up. Nevis Eases Secrecy. Panama Rails. Swiss 'Bad Rap'. Gibraltar Sharing? EU Super State. New World Post 9-11.
* WEALTH: U.S. Bank Spying. Bank Spy Software. Tax Harmony Hurts U.S. Economy. Fleeing South Africa. Cuban Offer. Bankrupt Nations. Anti-Money Laundering Follies. US. Super Sex Champs.
* PRIVACY: Is This America? US Spies on Net Users. Software Maker Accused. Canada, U.K. Rush Toward Police States.
COMMENT:
Cayman Islands Surrenders To I.R.S.
The Cayman Islands, until now one of the world's leading tax havens, has signed a far reaching tax information exchange agreement giving the US government broad access "upon request" to virtually all financial information. The move ends the islands' tax haven status. In effect the Caymans government now will serve as an enforcement arm of the IRS, applying US tax law to US persons with business there.
Michael Alberga, a leading Caymanian lawyer, said the agreement represents "a 360 degree shift" in a 30-year-old policy. He called it "perplexing" that the Caymans got nothing in exchange. Last year he accused the OECD and rich nations of practicing "economic terrorism" against small nations such as the Caymans. Since then the government has adopted a host of OECD demanded laws that foretold the new US agreement announced this week. In May 2000 Caymans caved into the OECD, promising increased 'transparency'.
Suggesting independence from the UK may be the solution, The Cayman Net News denounced the agreement as "force fed" by Britain, charging the islands had been "victimized" and "compromised" by London.
The US will now have free access to all banking and other records for US criminal, civil and administrative tax investigations relating to US income taxes. Effective date for criminal tax evasion: Jan. 1, 2004; for all other tax matters, Jan.1, 2006. Nothing in the agreement bars retroactive claims by the IRS.
Because the CI levies no income taxes and tax evasion is not a crime there, until now dual criminality requirements blocked most foreign tax investigations. The new accord waives Cayman privacy laws, requiring disclosure of beneficial ownership of trusts, international business corporations and other entities.
A British overseas territory, the Cayman Islands ranks as the world's fifth-largest financial center, after New York, London, Tokyo and Hong Kong. It hosts 57,900 IBCs, 465 financial institutions, including most of the world's top banks, 2,621 mutual funds, 114 trust companies, 541 insurance companies and thousands of closed-end and hedge funds. Offshore business accounts for 30% of a GDP of US$1.4 billion. As of June 2000, total assets of Caymans banks stood at US $747.6 billion, a 50% growth over a 1996 figure of US $497 billion.
Those figures will soon take a decided nosedive as an army of IRS agents prepares for a mass invasion of the Cayman Islands.
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TEXT of US-Cayman Agreement:
http://www.caymannetnews.com/Tax%20Info%20Doc.html
http://www.treas.gov/press/releases/agree.pdf
Cayman government's official spin:
http://globalarchive.ft.com/globalarchive/article.html?id=011127006314
NEWS stories:
http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT33P1DHLUC
http://www.modbee.com/workmoney/story/1233092p-1301536c.html
Cayman Net News editorial:
http://www.caymannetnews.com/stories.html#Editorial
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* OFFSHORE *
BAHAMAS HIGH COURT NIXES ASSET FREEZE LAW
NASSAU. In a stunning blow to the government, the Bahamas Supreme Court ruled a new asset forfeiture law unconstitutional. Observers say this calls into question a series of laws that have impaired the islands status as a tax haven. The decision comes as The Bahamas suffers a major recession, much of it due to a crippled offshore sector.
LINKS: http://www.miami.com/herald/content/business/digdocs/065974.htm and http://www.thenassauguardian.com/news_display.php?prid=2914.
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ST. VINCENT PLAYS CATCH UP
KINGSTOWN. Embroiled in an offshore banking scandal, this FATF blacklisted nation passes a new anti-money laundering law.
LINKS: http://www.tax-news.com/asp/story/story.asp?storyname=6490 and http://www.naplesnews.com/01/11/florida/d708909a.htm.
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NEVIS EASES FINANCIAL SECRECY
CHARLESTOWN, Nevis. The island assembly eases secrecy on bank and IBC beneficial ownership.
LINK (scroll down): http://www.cweek.com/current.html
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PANAMA RAILWAY OPENS
Panama's transcontinental railroad opens for cargo business, putting the Atlantic and Pacific Oceans little more than an hour apart.
LINK: Click Here.
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SWISS DECRY 'BAD RAP' ON DIRTY CASH
Fact 1: Switzerland enforces some of the world's toughest anti-money laundering laws. Fact 2: It has a bad image as a dirty cash haven.
LINKS: http://www.scotlandonsunday.com/world.cfm?id=SS01045777 and http://www.tax-news.com/asp/story/story.asp?storyname=6480.
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GIBRALTAR JOINT SOVEREIGNTY DEAL
Britain says it wont surrender The Rock to Spain, but it may share.
LINKS: Click Here and http://www.tax-news.com/asp/story/story.asp?storyname=6433
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GERMANY, FRANCE WANT E.U. SUPER STATE
French and German leaders want a European super state with EU wide police, military, courts, customs, criminal laws.
LINK: Click Here
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POST 9-11 IT'S A NEW WORLD OUT THERE
A new international order may not have emerged after Sept. 11, but the outlines of a new world are emerging.
LINK: http://www.observer.co.uk/comment/story/0,6903,605602,00.html
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* WEALTH *
U.S. BANK SPY SYSTEM QUESTIONED
WASHINGTON. Civil liberties and privacy concerns raised about a possible government-banks data spy system.
LINKS: http://dailynews.yahoo.com/htx/ap/20011126/us/terror_money_banks_1.html and http://dailynews.yahoo.com/h/nm/20011126/bs/financial_terror_wsj_dc_1.html.
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BANKS SPY ON ACCOUNTS WITH SOFTWARE
Bank account holders are constantly spied upon by bank software.
LINK: Click Here.
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'TAX HARMONY' DRIVE HURTS U.S.A.
Heritage Foundation's Dan MITCHELL explains why the OECD's 'tax harmonization' drive threatens the US economy.
LINKS: http://www.tax-news.com/asp/story/story.asp?storyname=6470 and Click Here.
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MERRILL LYNCH BAILS OUT OF SOUTH AFRICA
JOHANNESBURG. A major financial firm ends private banking.
LINK: http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3NM4BXJUC
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COMMUNIST CUBA OFFERS COMPENSATION
HAVANA. Cuba offers to compensate 6,000 U.S. firms and citizens whose property was nationalized, for a price.
LINK: http://www.bayarea.com/rc/news/docs/1685888l.htm
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INTERNATIONAL BANKRUPTCY
Should nations be allowed to file for bankruptcy? IMF says Yes!
LINKS: Click Here and Here.
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ANTI-MONEY LAUNDERING FOLLIES
Fighting dirty cash gets headlines but few victories.
LINK: http://www.usatoday.com/news/comment/2001-11-28-ncguest2.htm
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U.S. SEXUAL SUPER POWER
The US is the sexual super power of the world. Greeks second.
LINK: http://uk.news.yahoo.com/011127/80/cjki0.html
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* PRIVACY *
THIS IS AMERICA?
Sovereign Society Council of Experts member Harry BROWNE, former US presidential candidate, asks what's happening to America.
LINK: http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=25456
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U.S. NOW SPYING ON INTERNET USERS
Police already are using new anti-terrorism powers to monitor cable modem users without obtaining a search warrant.
LINK: http://www.wired.com/news/conflict/0,2100,48711,00.html
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SOFTWARE MAY HELP FEDS SPY
A leading US software maker is accused of helping feds snoop.
LINKS: http://www.wired.com/news/conflict/0,2100,48648,00.html and http://www.theregister.co.uk/content/55/23057.html.
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CANADA RAMS THROUGH POLICE STATE
OTTAWA. Canadian government smothers debate on terror bill.
LINK: Click Here.
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BRITISH LABOUR WARS ON FREEDOM
LONDON. Tony Blair's first war casualty is freedom.
LINKS: Click Here and Here.
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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER. E-mail to: info@sovereignsociety.com. * SUBSCRIBE FREE or send to a friend at LINK: http://www.sovereignsociety.com
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THE SOVEREIGN SOCIETY Ltd., 5 Catherine St., Waterford, Ireland. TEL: 353-51 844 068 FAX: 353-51 304 561. Copyright (C) 2001. All domestic & international rights reserved.
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