September 27, 2002
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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Prosperity & Privacy in the Offshore World
Friday, September 27, 2002 - Vol. 4 No. 99
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In This Issue:
* COMMENT: Dead Directive.

* OFFSHORE: Big Nation Corruption. UK Colonials, IR Hypocrisy. Jersey Mimics Man. Hong Kong Liberties. Dubai OFC. US-Barbados Tax Treaty in Doubt. Costa Rica Makes Residency More Difficult.

* WEALTH: FATF Ends Blacklist. Exempt Funds. IRS Impotency. US Forfeiture Laws Used Against Business. Nigerian Embezzler. EU Deficits. Deadbeat Governments.

* PRIVACY & RIGHTS: Bank Privacy Dead? 9/11 Investigation Finally. The (Shutter) World as Ron Paul Sees It!!!
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* ADVERTISEMENT *

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* COMMENT: Dead Directive.

From PARIS, France.

Dear A-Letter Reader:
More often than we will ever know, (but not often enough), little known executive branch policy decisions spare citizens from potential suffering at the callous hands of tax hungry government bureaucrats.

This was the week when a correct Bush White House policy choice saved the American economy from a major body blow. At the same time cross-border foreign investors everywhere had their financial privacy reconfirmed. Both salutary events flowed from the death of the European Union's odious 'saving tax directive' or STD.

As we had predicted some months ago, Glenn Hubbard, chairman of the President's Council of Economic Advisers, confirmed that the Bush administration will not agree to EU demands for broad sharing of information on all savings and investment accounts held in the US by foreigners. "We are not for the European savings initiative," he said.

Non-readers of The A-Letter may wonder what the EU's STD was all about. As aptly put by the Cato Institute: "This plan would mandate automatic and unlimited exchange of [financial] information between nations with regard to nonresident savings." It would have freed the high tax EU proponents from low tax competition and would have ended what little financial privacy still remains.

Had the US agreed with the EU, Switzerland's bank secrecy would have been jeopardized and other nations that guarantee financial privacy, such as Austria, Luxembourg, Monaco, Panama and Andorra, all might have have been forced into unwilling agreement.

This decision was hard fought behind closed doors in Washington, with holdover Clinton US Treasury appointees doing everything they could to block the right decision. Special honors for leading the fight go to the Center for Freedom and Prosperity, the tireless and articulate Dan Mitchell of the Heritage Foundation and Veronique deRugy of the Cato Institute. And we like to think The Sovereign Society and The A-Letter did our part too.

Now the Bush folks should be consistent and clamp down on the IRS which is doing exactly what the EU wanted to do -- conducting illegal fishing expeditions that violate privacy rights and presume tax evasion guilt without a shred of real proof.

That's the way that it looks from here.
BOB BAUMAN, Editor
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* COMMENT LINKS:
* US opposes plan to share savings data with EU. Financial Times. LINK:
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1031119662230
* White House Opposes EU Information Sharing Proposals. Tax-News.com
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9507
* US opposition endangers UK backed savings tax plan. LINK:
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1031119672516
* Center for Freedom & Prosperity Savings Tax Directive web page.
LINK: http://www.freedomandprosperity.org/eu/eu.shtml
* EU Savings Tax Directive a Tax Cartel in Disguise. Cato Institute.
LINK: http://www.cato.org/new/05-02/05-30-02r.html
* U.K. Continues Attack on Swiss Bank Secrecy. Bloomberg News. LINK:
http://quote.bloomberg.com/fgcgi.cgi?mnu=news&ptitle=Politics UK&tp=ad_uknews&T=news_storypage99.ht&ad=uk_politic&s=APZIZExUiU3dpc3Mg
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* OFFSHORE *

TAX HAVENS CHARGE BIG NATION CORRUPTION
Haven group says hypocritical high tax countries allow corruption.
LINK: http://news.bbc.co.uk/2/hi/business/2279263.stm
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BRITISH O.S.T. MEETING
LONDON: Indentured colonials supposedly 'consult' with UK. LINK:
http://www.fco.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPage&c=Page&cid=1007029391629&a=KArticle&aid=1032957920321
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MORE U.K. LABOUR HYPOCRISY LONDON: 
Blair government tries to crush tax havens but UK Inland Revenue secretly uses havens to its own advantage. LINK:
http://www.thisisgloucestershire.co.uk/displayNode.jsp?nodeId=84282&command=displayContent&sourceNode=84281&contentPK=2655820
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JERSEY MAY FOLLOW ISLE OF MAN, END CORPORATE TAXES ST. HELIER: 
Tax competition among UK havens forces corporate tax cuts.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9485
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HONG KONG'S LOST LIBERTIES
Business as usual as new Red China law threatens SAR freedom. LINKS:
http://www.bizjournals.com/pittsburgh/stories/2002/09/23/smallb2.html
http://www.newsday.com/news/nationworld/wire/sns-ap-hong-kong-subversion0924sep24,0,876313.story?coll=sns-ap-nationworld-headlines
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DUBAI OFFSHORE CENTER HAS MANY APPLICANTS
25 financial firms sign up for new Arab Gulf OFC.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9506
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AMERICAN POLITICS ENDANGERS U.S.-BARBADOS TAX TREATY
Existing treaty tax breaks for offshore US companies may be ended.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9488
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COSTA RICA CURBS POTENTIAL FOREIGN RESIDENTS SAN JOSE: 
No more in-country applications for residency allowed.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9486
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* ADVERTISEMENT *

ARE YOUR OFFSHORE ASSETS REALLY SAFE?

Don't go offshore without it! The US has dozens of MLATS that permit asset seizure in some offshore havens. Sovereign Society Editorial Director, Mark Nestmann has prepared an exclusive report listing all US MLATs now in effect, analyzing the impact upon offshore investors and suggesting practical strategies to deal with their terms. To learn more, CLICK here:

LINK: http://www.agora-inc.com/reports/190SMNML/W190C992/

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* WEALTH *

F.A.T.F. ABANDONS NATIONS BLACKLIST
Financial Action Task Force (FATF) suspends self-appointed role as dirty money judge, ends country blacklisting. LINK: http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1031119656314
* FATF meets in October; RUSSIA may get off blacklist.
LINK: http://english.pravda.ru/economics/2002/09/25/37196.html
* Online gambling web sites tell FATF they can keep clean.
LINK: http://www.winneronline.com/articles/september2002/fatf.htm
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VENTURE CAPITAL FUNDS EXEMPT FROM U.S.A. PATRIOT RULES
WASHINGTON: Restricted withdrawals make abuse unlikely. LINK:
http://www.washingtonpost.com/wp-dyn/articles/A3088-2002Sep25.html
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I.R.S. CLAIMS WIDESPREAD U.S. TAX EVASION
WASHINGTON: Agency head claims IRS can't keep up with evasion. LINKS:
http://www.rockymountainnews.com/drmn/business/article/0,1299,DRMN_4_1438257,00.html
http://www.tax-news.com/asp/story/story.asp?storyname=9499
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U.S. PROSECUTORS WANT TO SEIZE CORPORATE OFFICIALS ASSETS WASHINGTON: 
Drug civil forfeiture laws to be used on business crooks. LINK:
http://quote.bloomberg.com/fgcgi.cgi?T=uspolitics_news.ht&s=APZG2zBYMUHJvc2Vj
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NIGERIAN SCAM DUPE EMBEZZLES $2.1 MILLION DETROIT: 
Legal secretary strips law firm, sends cash to offshore banks.
LINK: http://www.dmnews.com/cgi-bin/artprevbot.cgi?article_id=21664
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EUROPEAN UNION ECONOMIC PLANS DYING, DEAD BRUSSELS: 
Deadline for curbing deficits keeps on moving farther away.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9501

* French government plans tax cuts.
LINK: http://news.bbc.co.uk/2/hi/business/2281852.stm
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DEADBEAT GOVERNMENTS DOUBLE IN NUMBER LONDON: 
Debt defaults by sovereign governments keep on rising. LINK:
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1031119603557
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* PRIVACY & RIGHTS *

BANKS DUMP CLIENT FINANCIAL PRIVACY CAPE TOWN, South Africa: 
Government bank supervisors of 120 nations agree to invade account holders privacy to pursue alleged terror suspects.
LINK: http://www.forbes.com/markets/newswire/2002/09/19/rtr725822.html
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INVESTIGATION OF 9-11 INTELLIGENCE FAILURES
A year later the US Congress finally agrees to an independent inquiry into the massive failure of US agencies to head off 9/11 terror attacks. LINK:
http://www.washingtonpost.com/wp-dyn/articles/A62636-2002Sep24.html
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READ THIS AND WEEP
U.S. Rep. Ron Paul (R-Tex) describes the world and US predicament in stark , honest terms. Who wants to add a war to all this?
LINK: http://www.lewrockwell.com/paul/paul56.html
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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER. 
* SUBSCRIBE FREE or send to a friend at LINK: HOME
PLEASE DO NOT RESPOND DIRECTLY TO THE A-LETTER. SEND E-MAIL TO: INFO@THESOVEREIGNSOCIETY.COM
====================================
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 Ltd., 5 Catherine St., Waterford, Ireland
TEL: 353-51 844 068 FAX: 353-51 304 561
Copyright (C) 2002. All domestic & international rights reserved.
September 25, 2002

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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Prosperity & Privacy in the Offshore World
Wednesday, September 25, 2002 - Vol. 4 No. 98
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In This Issue:
* COMMENT: Editor Travel; OffshoreOn.com

* OFFSHORE: Manx Treaties. Offshore Lobby. Nigerian Funds. OECD Hurts Havens. Ireland Challenges. HK$ Scare. Brunei Bid.

* WEALTH: Shell Banks. Venture Capital. Hedge Funds. Minimum Tax. Becker Prosecution. Comp Plans Hit. Trade War. China Ahead of US.

* PRIVACY & RIGHTS: Ashcroft Coalition. Brit Protests. 809 Scam.
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* ADVERTISEMENT *

US Government Backed "Portfolio Repair" Program Pays Out Millions of Dollars to "In-the-Know" Investors

* Michael Farrell, age 50, received about $1.675 million last year. The year before that he got $400,000. * Jennifer Stevens, 31, pocketed $391,000 last year alone, from this same source. * Joseph Galligan, 43,received $31,200 last year as part of this same deal. If you qualify,you can start receiving payments almost immediately, no matter what your situation. This bureaucratic loophole won't stay open forever. All the details here:

LINK: http://www.agora-inc.com/reports/TRW/WTRWC917/

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* COMMENT: Editor Travel; Offshore-Onshore.com

Dear A-Letter Reader:
Your peripatetic editor is off to attend the Anglo-Irish Bank's 3rd Annual Global Investment Seminar in Vienna, Austria. Along the way I'll be stopping in Paris to visit some old friends and hopefully get a bit of R&R. I'll be reporting along the way from various venues so you'll get the offshore news as always, with help from our US and Irish office folks.

AIB is one of the Sovereign Society's preferred offshore banks for our members. That's because of Austria's strong financial privacy laws that are written into that nation's constitution, as well as AIB's good record of service and reasonable rates.

On another front, we at the Sovereign Society have been impressed with a relatively new offshore web site and its publications, although unlike the A-Letter, its services are available only to subscribers. It's called OffshoreOn.com and is aimed at offshore professionals around the world. Below are LINKS to their sample stories and a LINK for subscribing if you wish. Check them out and we think you'll be pleased.

That's the way that it looks from here.
BOB BAUMAN, Editor
=============================
COMMENT LINKS:
* Anglo-Irish Bank Vienna. LINK:
http://www.angloirishbank.at/en/home/index.asp
* Anglo-Irish Bank Seminar. LINK:
http://www.feenews.org/schedule.htm
* Sovereign Society Offshore Convenient Bank Accounts. LINK:
http://www.sovereignsociety.com/vmembers.php?sec=acctprog
* Sample Offshoreon.com articles:
* Regulatory Uncertainty Caused Fall in IBC Registrations
LINK: http://www.offshoreon.com/articles/3498.asp?docid=3498
* Pace of Captive Insurance Registrations Increases
LINK: http://www.offshoreon.com/articles/3505.asp?docid=3505
* Carlos Menem Case Blocked Due to Incomplete Requests
LINK: http://www.offshoreon.com/articles/3547.asp?docid=3547
* For Offshoreon subscriptions, LINK:
LINK: https://www.offshoreon.com/secsubscribenow.asp
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* OFFSHORE *

ISLE OF MAN SEEKS MORE TAX INFO TREATIES
DOUGLAS, IoM. Yesterday we reported on a new tax information exchange treaty between the Isle of Man and the US. Now news of Manx TIEAs with Ireland and Germany. Good-bye Manbx financial privacy?
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9475

* List of US IRS TIEAs and other tax treaties (not complete)
LINK (pdf download): http://www.irs.gov/pub/irs-apa/treaty.pdf
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OFFSHORE COMPANIES HIRE WASHINGTON LOBBYISTS
Major US corporations that have moved offshore fight congressional tax curbs with high powered DC lobbyists. LINK:
http://www.washingtonpost.com/wp-dyn/articles/A57407-2002Sep23.html
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OFFSHORE BANKS HIT FOR NIGERIAN FUNDS
Banks in Switzerland, Liechtenstein, Luxembourg and the UK hold over US$1 billion of former Nigerian dictator's alleged loot. LINK:
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT
/FullStory&c=StoryFT&cid=1031119577580
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NEW REPORT SHOWS O.E.C.D. HURTS SMALL NATIONS
Large nations help themselves commercially with rules aimed at tax havens and that supposedly fight corporate crime.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9478
Text of ITIO statement at LINK: http://www.itio.org/news.htm
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IRELAND CHALLENGES U.K. HAVEN DESIGNATION
DUBLIN: Government may fight UK listing as 'tax haven' under CFC law.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9467
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HONG KONG DOLLAR PEG AGAIN QUESTIONED
More scares about unpegging HK$ to the US$.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9471

* HONG KONG a leader in attracting direct foreign investment.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9443
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BRUNEI IS A BERMUDA WANNABE
The Sultanate looks to Bermuda for its own offshore haven planning.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9474
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LINK: http://www.agora-inc.com/reports/190SMNPS/W190C962/

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* WEALTH *

U.S. TREASURY MAY BACK DOWN ON SHELL BANKS
Major opposition from US banks may dilute new rules to be issued under the USA Patriot Act aimed at offshore shell banks. LINK:
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT
/FullStory&c=StoryFT&cid=1031119498370
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USA PATRIOT RULES BURDEN VENTURE CAPITAL FIRMS
Investors must be fully vetted to find who they are.
LINK: http://www.herring.com/mag/issue116/3720.html
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HEDGE FUNDS PATRIOT RULES LESS RESTRICTIVE
More narrowly defined US Treasury Dept. rules issued. LINK:
http://hedgeworld.com/news/read_news.cgi?section=legl&story=legl1510.html

* US Treasury singles out hedge funds for scrutiny. LINK:
http://www.institutionalinvestor.com/iiochannel/alternativeinvestments/
20020920000900.htm
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U.S. ALTERNATIVE MINIMUM TAX HITS MILLIONS
36 million Americans may be hit by anti-wealth tax. LINK:
http://www.guardian.co.uk/uslatest/story/0,1282,-2025541,00.html
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TENNIS STAR BECKER PROSECUTED FOR TAX EVASION
German tax collectors claim he is not a resident of MONACO.
LINKS: http://www.itv.com/news/World925638.html
http://www.tax-news.com/asp/story/story.asp?storyname=9454
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U.S. SENATE ATTACKS OFFSHORE COMPENSATION PLANS
Executive tax breaks may be killed by pending legislation. LINK:
http://www.institutionalinvestor.com/iiochannel/alternativeinvestments
/20020920000800.htm
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U.S.-EUROPE TRADE WAR IMPERILS CORPORATE TAX BREAKS
A civil war over taxes within a trans-Atlantic trade dispute.
LINK: http://www.nytimes.com/2002/09/20/business/20TRAD.html
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CHINA GETS MORE FOREIGN INVESTMENT THAN DOES U.S.
Tax bound US displaced as first choice of offshore investors. LINK:
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/
FullStory&c=StoryFT&cid=1031119542114
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* PRIVACY & RIGHTS *

U.S. A.G. ASHCROFT INSPIRES UNUSUAL ALLIANCE
Anti-rights decisions cloaked in anti-terrorism create an unlikely coalition of American conservatives and liberals. LINK:
http://www.sacbee.com/content/politics/story/4528626p-5548113c.html

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400,000 BRITS PROTEST BLAIR POLICIES
LONDON: "I love my country, I fear my government."- Placard carried by one of the 400,000 who thronged London to oppose Labour's 'anti-
country' policies, which include a ban on fox hunting. LINK:
http://www.newsday.com/news/nationworld/wire/sns-ap-britain-countryside
-march0922sep22(0,7280382).story?coll=sns-ap-nationworld-headlines

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AREA '809' TELEPHONE SCAMS
Don't respond to e-mails, phone calls, or web pages that tell you to call an "809" phone number. More info from AT&T:
LINKS: http://www.att.com/fraud/home.html#thre/s/
http://www.cs.ucsd.edu/users/bsy/area.html
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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER. * SUBSCRIBE
FREE or send to a friend at LINK: HOME
PLEASE DO NOT RESPOND DIRECTLY TO THE A-LETTER.
SEND E-MAIL TO: INFO@THESOVEREIGNSOCIETY.COM
====================================
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 Ltd., 5 Catherine St., Waterford, Ireland
TEL: 353-51 844 068 FAX: 353-51 304 561
Copyright (C) 2002. All domestic & international rights reserved.