==================================
THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Prosperity & Privacy in the Offshore World
Wednesday, November 06, 2002 - Vol. 4 No. 116
==================================
In This Issue:
* COMMENT: Liars Do Figure.
* OFFSHORE: EU Tax Sharing Plan Dying; Swiss Refuse EU Demands.
EU Tax Blocked. Jersey Signs IRS Deal. UK-Irish Companies May Sue.
Rock to Vote. US-Canada Border Dispute. Panama Censors Internet.
Rich Australians Tax Target. Nigerian Fraud Stop? Zimbabwe Expat Tax.
* WEALTH: Big Banks Hit Shell Banks. Offshore SARs? US Bad Tax Policy.
Beirut Real Estate Booms with Saudi Cash.
==================================
* ADVERTISEMENT *
In just 30 seconds the life for which you've worked so hard, for you
and your family, can be stolen forever. For decades very wealthy
families and individuals have used powerful strategies to protect their
wealth. Now the Oxford Club has created a resource that allows you
access to these same safeguards. It's called the 'Complete Art of
Wealth Defense'. Discover how you too can protect your wealth here:
LINK: http://www.agora-inc.com/reports/300SCAWD/W3CAC812/
==================================
* COMMENT: Liars Do Figure.
Dear A-Letter Reader:
Today the US Commissioner of the Internal Revenue Service, Charles O.
Rossotti, ends his five year term. In a parting shot, he claimed the
IRS is losing the war against tax cheats, especially the wealthiest
and most sophisticated among them. He made his farewell complaint in
an interview with The New York Times' David Caye Johnson, a slavish
shill for the IRS.
"The departure of scandal tainted IRS commissioner is great news for
taxpayers and the Bill of Rights," said Cato Institute Fiscal Policy
Analyst Veronique de Rugy. "As it is, his tenure has been highlighted
by flagrant attacks on the Fourth Amendment and gross abuses."
What caught my eye was a statement attributed to Rossotti that the IRS
had identified 82,100 taxpayers who he said use offshore accounts to
evade taxes, with an estimated annual tax loss at $447 million, less
than $7,000 per taxpayer. This raised even the eyebrows of sympathetic
Times 'reporter' Johnson, who noted this new number is "a modest figure
when compared with his [Rossotti's] previous estimates of multibillion
dollar losses" from alleged offshore tax evaders.
In 2000 the IRS estimated that 505,000 taxpayers had an offshore bank
account, but earlier this year they had upped the number to 2 million.
Quite a jump in less than one year, eh?
Talk about discrepancies! Only last May the same IRS Commissioner,
demanding federal subpoenas for thousands of offshore credit card
accounts, claimed offshore tax evasion was costing the government
$20 billion to $40 billion in 2000 alone! Jack Blum, a Washington
lobbyist who is regularly quoted as an IRS consultant on tax evasion,
estimated that offshore evasion cost government $70 billion annually.
Some months back we commented on the patently absurd figures the
IRS had been throwing around about offshore tax evasion, concluding
that the entire charade was consistent with traditional IRS scare
tactics used each April 15th. Of course the dutifully 'news' media
swallowed all this IRS baloney without questioning.
Well, if the retiring IRS Commission can't figure out whether it's $447
million or $70 billion being lost, or whether supposed offshore evaders
number 505,000 or 2 million, he's being completely consistent with
the way the IRS mishandles most matters under its jurisdiction.
That old saying is: "Figures don't lie, but liars do figure."
And that's the way that it looks from here.
BOB BAUMAN, Editor
==================================
COMMENT LINKS:
* Departing Chief Says IRS Is Losing War on Tax Cheats.
LINK: http://www.nytimes.com/2002/11/05/business/05IRS.html
* IRS: Efforts to Combat Abusive Tax Schemes. GAO. May 22, 2002.
LINK: http://www.gao.gov/cgi-bin/getrpt?GAO-02-733
* The Latest IRS Scare Campaign. Cato Institute.
LINK: http://www.cato.org/dailys/04-12-02.html
==================================
* OFFSHORE *
E.U. TAX INFORMATION SHARING PLANS COLLAPSE
With the US and SWITZERLAND refusing to go along with European
Union demands to end financial privacy, it finally dawns on thick EU
politicians and tax collectors they are not going to get what they want.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9898
* UK Chancellor fails to persuade SWISS to end bank secrecy. LINK:
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/
FullStory&c=StoryFT&cid=1035872998699
* Swiss and British lock horns over banking secrecy. LINK:
http://www.swissinfo.org/sen/Swissinfo.html?siteSect=111&sid=1436793
* Swiss refuse to end banking secrecy. Daily Telegraph. LINK:
http://money.telegraph.co.uk/money/main.jhtml;$sessionid$1CNJVY
BWJHBFVQFIQMFCFFWAVCBQYIV0?xml=
/money/2002/11/05/cnswis05.xml&sSheet=/money/2002/11/05/ixcity.html
* AUSTRIA says EU tax deal near collapses. LINK:
http://www.ananova.com/business/story/sm_703501.html?menu=
-----
E.U. PLANS FOR ALL EUROPE TAX BLOCKED
Ireland, UK join other EU members in stopping EU 'tax harmonization.'
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9888
-----
JERSEY SIGNS TAX INFO SHARING AGREEMENT WITH U.S.
WASHINGTON: Channel Island formally agrees to TIEA giving
IRS access to US persons' financial and banking records.
LINKS: http://news.bbc.co.uk/1/hi/business/2402989.stm
http://usinfo.state.gov/cgi-bin/washfile/display.pl?p=/products/washf
ile/latest&f=02110403.wlt&t=
/products/washfile/newsitem.shtml
* For full TIEA TEXT, see LINK at bottom of this page:
LINK: http://www.ustreas.gov/press/releases/po3595.htm
* Jersey fund assets up 14% in 2001.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9892
-----
U.K. COMPANIES IN IRELAND CHALLENGE TAX RULING
LONDON: Lawsuit considered against UK Revenue tax haven rule.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9860
-----
20,000 TO VOTE IN ROCK REFERENDUM
Sovereignty is the question in British colony claimed by Spain.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9891
-----
NEW U.S.-CANADA BORDER CROSSING RULES
Canadians claim discrimination; US claims needed anti-terrorism.
LINK: http://www.buffalonews.com/editorial/20021105/1049169.asp
-----
PANAMA GOVERNMENT IMPOSES PHONE MONOPOLY
Protecting telecom deals, government blocks Internet ports. LINKS:
http://www.linuxandmain.com/modules.php?name=News&file=
article&sid=277
-----
RICH AUSTRALIANS TREATED LIKE CRIMINALS
Tax collectors force total information disclosure for wealthy
and all their family members; rich become tax targets. LINK:
http://www.theaustralian.news.com.au/common/story_page/0,57
44,5430928%5E16946,00.html
* Most Australians would cheat on taxes if they could. LINK:
http://www.sundaytimes.news.com.au/common/story_page/0,703
4,5417188%5E462,00.html
-----
NIGERIA TOLD TO END FRAUD NOW
US, EU give African nation Dec. 15th deadline to end e-mail scams. LINK:
http://www.vanguardngr.com/articles/2002/columns/c105112002.html
-----
BANKRUPT ZIMBABWE TRIES TO IMPOSE EXPAT TAXES
HARARE: Mugabe out of funds, wants to tax 3 million expatriates.
LINK: http://allafrica.com/stories/200211040471.html
==================================
* ADVERTISEMENT *
Legally obtain a second passport and live the life of your dreams. Own a
private stretch of beach on some sleepy Caribbean or Greek isle, or a
16th century farmhouse in the French countryside; a villa along the
Spanish or Italian Riviera; an oak beamed cottage on a secluded mountain
range in the center of Europe. Countries worldwide are filled with
extraordinary possibilities, most never even explored, considered or
obtained by average persons. Find out what a second passport can do for
YOU; click here:
LINK: http://www.agora-inc.com/reports/190SGOPS/W190CB15/
==================================
* WEALTH *
MAJOR FOREIGN BANKS TRY TO CURB SHELL BANKS
Wolfsberg Group, led by Swiss bank UBS, adopt anti-shell bank rules,
compromise bank secrecy, but have no enforcement powers. LINK:
http://reuters.com/news_article.jhtml?type=worldnews&StoryID=1682265
-----
OFFSHORE FUND MANAGERS WARNED ON SARs
US may try to extend suspicious activity reporting to US
persons who invest offshore, fund managers told.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=9894
* 'Behavior detection' software to spy for Merrill Lynch. LINK:
http://www.businesswire.com/cgi-bin/f_headline.cgi?day0/22309
2157&ticker=
-----
NEITHER EQUALITY NOR PROSPERITY
US tax policies drive wealthy individuals and corporations offshore.
LINK: http://www.washtimes.com/commentary/20021105-39611316.htm
-----
BEIRUT REAL ESTATE BOOMS WITH SAUDI CASH
Lebanon enjoys high priced real estate building boom as
Arab cash flees US, Western banks and investments. LINK:
http://www.reuters.co.uk/newsArticle.jhtml;jsessionid=5MKR2BV2G14ZGC
RBAE0CFEY?type=worldNews&storyID=1673497
* Rich and poor live in stark contrasts in Lebanon.
LINK: http://www.dailystar.com.lb/04_11_02/art11.asp
==================================
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.