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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Prosperity & Privacy in the Offshore World
Tuesday, August 13, 2002 - Vol. 4 No. 79
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In This Issue:
* COMMENT: Inconsistency & Bugaboos.
* OFFSHORE: Lord Ashcroft Hounded. US Lied to Austria. Channel Islands Threat. German Amnesty. Finns Fear Estonia. OECD Deadly Demands. Bahamas Hit Hard. Nicaragua's Moment. New US Corporate Curbs Upsets UK, Europe. Foreign Travelers Health Tips.
* RE-INCORPORATION POLITICS: Bermuda Betrayed. DC Lobbying Frenzy.
Pension Fund Offshore Boycott. US Jobs Gone Offshore.
* WEALTH: Offshoreon.com: A Must Read! British Cash Hypocrisy.
US Forfeiture Grows. IRS Opposed. Denver Deadbeat. Clearstream
Info Source. South African Investors Retrench. CNN Old 'News'.
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* COMMENT: Inconsistency & Bugaboos.
Dear A-Letter Reader:
Among other things, Ralph Waldo Emerson told the world: "A foolish consistency is the hobgoblin of little minds." But then he also was the same sage who said: "Hitch your wagon to a star." Well, there aren't many stars in the US Congress, and not much consistency either. But hobgoblins? Maybe. You've seen at lot in this space in recent months about the fake moral indignation of US politicians fulminating against corporate malfeasance of all sorts. Most recently these worthies have clamored aboard the anti-offshore re-incorporation bandwagon, attacking legal business decisions fully permitted by the US tax code.
Bermuda, the Cayman Islands, Barbados and other tax havens suddenly became targets for cheap shots because their low business taxes attract American companies. Now Congress wants to to punish these same legally acting companies by denying them billions in contracts with the US government. Better to look tough, rather than adopting real reforms of the unfair, US double taxes on business.
The Wall Street Journal has had the temerity to point out that the same principle being loudly applied to offshore tax havens is not applied to domestic tax competition among the States of the Union.
Many large US multi-state companies use domestic low tax, corporate friendly states, such as Delaware or Nevada, to shelter income from taxes. Indeed, people often move freely from high tax states, such as New York or California, to no income tax states such as Florida, New Hampshire or Tennessee.
Will we now see congressional proposals to penalize US citizens who move to no tax states? Will Congress punish corporations who incorporate business activity in Delaware to avoid taxes? How about denying all federal benefits to people who make interstate tax savings moves?
You can see what I mean about "consistency."
By the way, a "hobgoblin" is defined as a "mischievous goblin" or a "bugaboo." That in turn is said to be "an aginary object of fear."
Rather like this whole phony issue of US corporations going offshore.
That's the way that it looks from here.
BOB BAUMAN, Editor
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COMMENT LINKS:
* Tax Maneuver in Delaware Puts Squeeze on Other States. (Subs only)
LINK:http://online.wsj.com/article/0,,SB1028846669582427320,00.html
* US States Target Tax-Avoiding Corporations. Tax-News.com.
LINK:http://www.tax-news.com/asp/story/story.asp?storyname=9035
* It's the Tax Code, Stupid. Citizens for a Sound Economy.
LINK:http://www.cse.org/informed/issues_template.php/1066.htm
* US Constitution, Art.1, sec. 8, power to regulate commerce.
LINK:http://caselaw.lp.findlaw.com/data/constitution/article01/28.html#5
* States in tax hiking frenzy. Christian Science Monitor.
LINK:http://www.csmonitor.com/2002/0812/p02s02-usec.html
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* OFFSHORE *
BRITISH PRESS KEEPS HOUNDING LORD ASHCROFT
UK peer, a major financial influence in BELIZE, now is questioned about his role as a director of Bermuda based Tyco Inc.
LINKS: http://politics.guardian.co.uk/conservatives/story/0,9061,771707,00.html
http://www.tax-news.com/asp/story/story.asp?storyname=9044
U.S. DEA agent goes to jail; sold info on Lord Ashcroft & Belize.
LINK:http://www.observer.co.uk/business/story/0,6903,772366,00.html
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U.S. PROSECUTORS LIED TO AUSTRIAN GOVERNMENT
Federal prosecutors lied to persuade Austria to extradite a businessman convicted of fraud in absentia; US judge vetoes sentencing deal.
LINKS:http://www.orlandosentinel.com/business/nationworld/orl-bizweiss
08080802aug08.story?coll=orl-business-headlines
http://www.heraldtribune.com/apps/pbcs.dll/article?Date=
20020808&Category=APN&ArtNo=208080573&Ref=AR&SectionCat=NEWS02
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U.K. LABOUR IMPLIED THREAT TO CHANNEL ISLANDS
ST. PETER PORT, Guernsey. New UK minister offers cooperation, so long as the Channel Islands do what London tells them.
LINK:http://www.tax-news.com/asp/story/story.asp?storyname=9042
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GERMAN CHANCELLOR OFFERS OFFSHORE AMNESTY
BERLIN. Behind in elections polls, a desperate Gerhard Schröder
offers tax amnesty for repatriated offshore funds.
LINK:http://www.telegraph.co.uk/news/main.jhtml;$sessionid$UJ4B5OPRL
LF0JQFIQMGCFF4AVCBQUIV0?xml=/news/2002/08/12/
wgerm12.xml&sSheet=/news/2002/08/12/ixworld.html&_requestid=243006
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FINLAND FEARS ESTONIAN TAX HAVEN
TALLINN, Estonia. Finnish unions fear corporate exodusto low tax Baltic neighbor when EU admission is complete. LINK:http://www.baltictimes.com/business.htm#2
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EU, OECD TAX DEMANDS DEADLY TO OTHER NATIONS
PANAMA's economy relies upon competition in world financial markets; the OECD does not want any nation to compete.
LINK:http://www.nationalreview.com/nrof_schlecht/schlecht072202.asp
* Foreign Policy magazine article by Dan Mitchell on the OECD.
LINK:http://www.freedomandprosperity.org/Articles/between-the-lines.pdf
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BAHAMAS ECONOMY HARD HIT BY BAD LAWSNASSAU. 91% of islands' employers say offshore law changes last year have hurt the nation's economy and cut jobs.
LINK:http://www.tax-news.com/asp/story/story.asp?storyname=9029
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NICARAGUA'S DEFINING MOMENT
Will corruption charges against ex-president be successful?
LINK:http://www.miami.com/mld/miamiherald/news/opinion/3844794.htm
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E.U & U.K. TURMOIL OVER NEW U.S. CORPORATE RESTRICTIONS
* US fraud law confuses Europe's top companies.
LINK:http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/
FullStory&c=StoryFT&cid=1028185679354
* German, EU legal actions possible against new US law.
LINK:http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/
FullStory&c=StoryFT&cid=1028185677452
* Alarm in London over US fraud law.
LINK:http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/
FullStory&c=StoryFT&cid=1028185679197
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OFFSHORE TRAVELERS HEALTH TIPS ATLANTA,
Georgia. Before you travel anywhere in the world, the
US CDC web site gives you health information about your destination. What to know before you go.
LINK:http://www.cdc.gov/travel/
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* OFFSHORE RE-INCORPORATION POLITICS *
BERMUDA SEES U.S. BETRAYAL; LOOKS ELSEWHERE HAMILTON.
Inversion US political tax fight promotes CARICOM membership, justified distrust of Washington.
LINK:http://www.theroyalgazette.com/apps/pbcs.dll/article?Date=20020808&
Category=NEWS&ArtNo=108080063&Ref=AR
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LOBBYISTS FIGHT NEW U.S. OFFSHORE RESTRICTIONS WASHINGTON.
Firms enlist ex-lawmakers to limit threatened changes in offshore tax breaks and government contracts.
LINKS:http://www.sunspot.net/news/nationworld/bal-te.lobby09aug09.story?
coll=bal-news-nation
http://www.nytimes.com/2002/08/10/politics/10LOBB.html
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U.S. PENSION FUNDS MAY BACK OFFSHORE BOYCOTT NEW YORK.
US pension funds meet to consider cutting investment links with US companies that move offshore to tax havens. LINKS:http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/
FullStory&c=StoryFT&cid=1028185675838
http://www.tax-news.com/asp/story/story.asp?storyname=9048
http://www.ananova.com/business/story/sm_648196.html?menu=
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ANOTHER U.S. OFFSHORE EXPORT:
JOBS Thousands of US call center jobs are moving overseas.
LINK:http://www.sun-sentinel.com/business/local/sfl-sbcalls11aug11.story?
coll=sfla-business-headlines
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* WEALTH *
EXCELLENT OFFSHORE TAX INFORMATION SOURCE
Bermuda-based web site provides comprehensive information on current
status of OECD, FATF & offshore tax developments. A MUST READ!
LINK:http://www.offshoreon.com/articles/3362.asp?docid=3362
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U.K. ANTI-MONEY LAUNDERING ACTION TAKES YEARS LONDON.
UK Labour government repeatedly accuses other nations of not fighting dirty cash, but takes 2 years to act in such cases.
LINK:http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/
FullStory&c=StoryFT&cid=1028185628750
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2ND U.S. COURT BACKS TERRORIST PROPERTY SEIZURE
Judge rules government can seize millions based on its charges of terrorism and defendant has no right to a review hearing.
LINK:http://www.washingtonpost.com/wp-dyn/articles/A1020-2002Aug9.html
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IRS U.S. NONRESIDENT REPORTING RULES OPPOSED
Heated opposition from the Center for Freedom and Prosperity.
LINK:http://www.freedomandprosperity.org/Articles/bna08-06-02/bna08-06-02.shtml
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U.S. OFFSHORE CON MAN ON TRIAL DENVER,
Colorado. $5 million milked from gullible Australians.
LINK:http://www.denverpost.com/Stories/0,1413,36%7E33%7E783365%7E,00.html
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LUXEMBOURG'S CLEARSTREAM GIVES GOOD INFO
Europe's major financial clearing house web site requires registration, but gives you a host of tax and other useful offshore information.
LINK:http://www.clearstream.com
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SOUTH AFRICAN INVESTORS FLEE OFFSHORE MUTUAL FUNDS JOHANNESBURG.
R1.5 billion pulled out of offshore unit trusts.
LINK:http://www.sundaytimes.co.za/2002/08/11/business/money/money02.asp
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CNN 'NEWS' NOTES NIGERIAN SCAM
The so-called 'news' TV channel discovers a very old story.
LINK:http://www.cnn.com/2002/TECH/internet/08/11/nigeria.scam/index.html
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