Wonder why Congress would allow the US to be taken from first world to third world on about $150,000 salary plus health benefits? Below you see why. These pols are getting super-sized pay-to-play in a system that allows anyone to pay someone else through these offshore accounts. DOES THAT SOUND LIKE GOOD PUBLIC INTEREST, DEMOCRATIC LAW? Yet, your neo-liberal here in Maryland is all for this banking system. We are fortunate to have International Journalists working with Wikileaks-like sites to locate lots of this money and to whom it is attached and we will pull together cases to claw this back. We need to have a candidate that will connect the US to the International Criminal Courts so this massive fraud can be handled like the Holocaust looting. These journalists are using the same structures to hunt and identify wealth according to country carted to these offshore accounts.
"According to the CBC, there was a massive leak of 'files containing information on over 120,000 offshore entities — including shell corporations and legal structures known as trusts — involving people in over 170 countries. The leak amounts to 260 gigabytes of data, or 162 times larger than the U.S. State Department cables published by WikiLeaks in 2010...In many cases, the leaked documents expose insider details of how agents would incorporate companies in Caribbean and South Pacific micro-states on behalf of wealthy clients, then assign front people called "nominees" to serve, on paper, as directors and shareholders for the corporations — disguising the companies' true owners.' Makes a good read and there are some good interactive components. Perhaps Slashdot readers can figure out how the source of the leak, the D.C.-based International Consortium of Investigative Journalists got their hands on this data."
The good news is that the American people can and will get this money back as we organize and reverse this corporate hold on government by getting rid of neo-liberals and rebuild the democratic party. Just think how much money Obama and neo-liberals could have brought back to government coffers and now, they are play-acting that there is a crisis around every corner to hide why they are dismantling the US public sector!
The first thing a neo-liberal supermajority in 2008 did was to protect the wealth inequity by massive corporate fraud. The next thing....make it easier to hide and/or keep the massive wealth the few now have. The estate tax and other legislation from the Depression era designed to keep a few from amassing this huge wealth we have today are being dismantled by neo-liberals. ALL OF MARYLAND DEMOCRATS ARE NEO-LIBERALS.
You see that the top states working hard to hide wealth are democratic leaders-----HARRY REID OF NEVADA AND JOE BIDEN OF DELAWARE. You know, those blue-collar kind of guys! WAKE UP AND RUN AND VOTE FOR LABOR AND JUSTICE!
America’s Most Wealth Friendly States Continue to Bid for Your Clients’ Trust Business
Posted by Jerry Cooper, Contributor - on January 15th, 2010
State legislatures are still enacting trust law enhancements to provide greater protection for your client’s wealth.
As more wealthy families cross borders to protect assets, they choose to set up personal trusts in states other than their own to take advantage of favorable trust laws.
According to recent data, 72 percent of U.S. households with more than $1 million in investment assets use trusts as a key component to their estate planning.
The main reasons to cross borders are:
• Some states don’t tax assets held in a trust, while distributions might be taxable in your home state.
• Trust codes in some states seek to protect assets from lawsuits and creditors.
• Some states allow “dynasty trusts” which permit future generations to avoid estate taxes.
Over the last few years a growing number of states have revised their trust codes to add features that provide for creditor protection, low or no state income tax and ability to establish a dynasty trust which allows for assets to pass to heirs for generations to come.
Nevada recently revised its trust code to provide for directed trusts. Directed trust statutes provide for an ability for the trustee to appoint an investment advisor to manage assets within the trust. This provides for low trustee fees and minimal trustee liability and provides flexibility to the investment manager ultimately benefiting the client.
Steven J. Oshins, an estate planning attorney and author of several trust laws in Nevada says, “Nevada’s new directed trust statute is critical to high net worth investors.” He adds, “Nevada now offers everything Delaware offers and more because of the combination of its 365-year dynasty trust law, two-year statute of limitations on self settled asset protection trusts and no taxation.”
Alaska revised its trust code to make it more difficult for divorcing spouses to grab trust assets. State trust laws vary widely and clients should compare jurisdictions for features that best fits their needs. Some of the most important trust features include whether or not a state has income tax.
When setting up a trust arrangement having a trust in a state that has no income tax has a definite economic financial impact on your client’s family. Therefore, no state income tax is amongst the most important.
Dynasty trusts are important beginning next year when estate taxes resume at a 55 percent tax rate. The general rule is the longer the period of time that the trust can exist the better it is.
Other factors include the number of trust providers or independent trust companies in the state which is an indication of whether a trust center is beneficial to a client and the time zone from New York.
But going out of state for a trust may not always make financial sense, especially for smaller trust accounts. Since the most favorable jurisdictions might be in states where you don’t know an individual trustee, you might need to hire a corporate trustee, which can cost about between ½ of 1 % to 1% or less of trust assets per year, depending on the size of the trust.
Moving an existing trust may also involve additional fees and may require court approval, depending on how the trust was originally drafted and state law.
With great states spread around the country, one important factor to consider when seeking a home for a trust is the avoidance of state income taxes. Trust experts say one of the first factors to look for when examining where to set up a trust is whether the assets are subject to state taxes.
The idea is to let trust investments grow for as long as possible free of state taxes, which can save significant sums of money, especially in high-tax states such as New York and California. (Beneficiaries, however, may be taxed on distributions, depending on whether their home state has an income tax.) Alaska, Delaware, Florida, Nevada, South Dakota, and Wyoming are attractive because they don’t impose any taxes on trust assets.
The following chart, the Best States for Trusts gives you a thumbnail view of which states are best. It is divided into three tiers Tier 1 being the best, Tier 2 being good and Tier 3 being marginal. Given that Alaska, Delaware, Nevada, South Dakota are in Tier 1 they are probably your best choices for trust business.
States bidding for trust business often will not tax those assets they are betting on increased economic activity which will bring other prosperity to the state such as job creation, corporate tax revenue collected from trust companies, corporate tax assessments from the trust companies.
It is for this reason that state legislatures continue to sharpen their pencils and enact new laws designed to attract wealthy baby boomers and their parents’ estates for future generations. Trust accounts have been an important port of the investment landscape.
For wealth management organizations advisors can gain additional income and provide more value to their service by bundling trust services within investment management. Last year several advisory firms launched their own trust companies in order to be better positioned to provide these services.
This includes Wealth Advisors Trust Company and Dominion Trust Company in South Dakota, both new launches targeting wealthy clients from a wealth-friendly trust state. This trend was featured in an Investment News Article last summer, More Advisory Firms Expected to Start Trust Companies.
Trusts can be created for a variety of other purposes including avoiding probate, passing on a family home to heirs, protecting money from creditors, caring for disabled child or even providing for a pet after one dies. Trusts continue to grow in popularity thanks to the aging population and more aggressive trust marketing by financial firms and the concerns about maximizing trusts’ growth performance.
Asset protection trusts have gained in popularity as marketing vehicles for advisors over the last several years with Alaska, Delaware, Nevada and South Dakota being the most popular jurisdictions. Doctors, business executives and other professionals have become increasingly interested in these trusts, advisors say. With these you transfer assets into a trust run by an independent trustee who can give your client distributions from time to time. These trusts if set up properly are in most cases able to keep the assets of the trust out of reach of creditors.
If you notice, the three banks handling the most offshore accounts and wealth are the same 3 most guilty of the massive financial frauds of last decade with almost no penalty and lots of flooding of Fed money at the time of the crash.
We know much of the money is-----we only need Rule of Law reinstated to get it. As the US Congress fights over the IRS tax scandal regarding political non-profits rage, the IRS is being defunded more and more so tax recovery does not happen.
THIS IS A NEO-LIBERAL ADMINISTRATION AND NOT ONE WORD FROM CONGRESS AS TO THESE TRILLIONS OF DOLLARS OF TAX EVASION.
'The three private banks handling the most assets offshore are UBS, Credit Suisse and Goldman Sachs'
22 July 2012 Last updated at 12:20 ET
Tax havens: Super-rich 'hiding' at least $21tn
A global super-rich elite had at least $21 trillion (£13tn) hidden in secret tax havens by the end of 2010, according to a major study.
The figure is equivalent to the size of the US and Japanese economies combined.
The Price of Offshore Revisited was written by James Henry, a former chief economist at the consultancy McKinsey, for the Tax Justice Network.
Tax expert and UK government adviser John Whiting said he was sceptical that the amount hidden was so large.
Mr Whiting, tax policy director at the Chartered Institute of Taxation, said: "There clearly are some significant amounts hidden away, but if it really is that size what is being done with it all?"
Mr Henry said his $21tn is actually a conservative figure and the true scale could be $32tn. A trillion is 1,000 billion.
Mr Henry used data from the Bank of International Settlements, International Monetary Fund, World Bank, and national governments.
His study deals only with financial wealth deposited in bank and investment accounts, and not other assets such as property and yachts.
The report comes amid growing public and political concern about tax avoidance and evasion. Some authorities, including in Germany, have even paid for information on alleged tax evaders stolen from banks.
The group that commissioned the report, Tax Justice Network, campaigns against tax havens.
Mr Henry said that the super-rich move money around the globe through an "industrious bevy of professional enablers in private banking, legal, accounting and investment industries.
"The lost tax revenues implied by our estimates is huge. It is large enough to make a significant difference to the finances of many countries.
"From another angle, this study is really good news. The world has just located a huge pile of financial wealth that might be called upon to contribute to the solution of our most pressing global problems," he said.
'Huge black hole' James Henry says his $21tn figure is a conservative estimate
The report highlights the impact on the balance sheets of 139 developing countries of money held in tax havens that is put beyond the reach of local tax authorities.
Mr Henry estimates that since the 1970s, the richest citizens of these 139 countries had amassed $7.3tn to $9.3tn of "unrecorded offshore wealth" by 2010.
Private wealth held offshore represents "a huge black hole in the world economy," Mr Henry said.
Mr Whiting, though, urged caution. "I cannot disprove the figures at all, but they do seem staggering. If the suggestion is that such amounts are actively hidden and never accessed, that seems odd - not least in terms of what the tax authorities are doing. In fact, the US, UK and German authorities are doing a lot."
He also pointed out that if tax havens were stuffed with such sizeable amounts, "you would expect the havens to be more conspicuously wealthy than they are".
Other findings in Mr Henry's report include:
- At the end of 2010, the 50 leading private banks alone collectively managed more than $12.1tn in cross-border invested assets for private clients
- The three private banks handling the most assets offshore are UBS, Credit Suisse and Goldman Sachs
- Less than 100,000 people worldwide own about $9.8tn of the wealth held offshore.
A spokesman for the Treasury said great strides were being made in cracking down on people hiding assets.
He said that in 2011-12 HM Revenue & Customs' High Net Worth Unit secured £200m in additional tax through its compliance work with the very wealthy.
He said that agreements reached with Liechtenstein and Switzerland will bring in £3bn and between £4bn and £7bn respectively.
Top Offshore Banking Locations for Enhanced Privacy and Protection
Emma Mackenzie | 7 Nov 2012 |
Offshore bank accounts are commonly misrepresented as a financial tool for the ultra wealthy. In reality, most individuals can establish offshore bank accounts that benefit from low minimum deposits, tax-free savings, increased privacy, and asset protection. Depending on your citizenship, your financial objectives, and your banking needs, the most appropriate jurisdiction in which you should select to set up an offshore account will vary.
Besides being an effective investment and tax friendly vehicle, an offshore bank account offers numerous advantages to account holders. Not only can individuals make use of offshore accounts to diversify their investment portfolios, but also they can benefit from tax savings, high interest rates, legal protection, and financial stability. However, knowing which jurisdiction to establish your account in is key to achieving your financial goals. Many countries require personal presence for the opening of an account, while other locations may require substantial deposits. Upon deciding on your primary banking goals, you can then ascertain the most suitable jurisdiction to bank with.
Here we provide the top five locations that offer unparalleled banking privacy to account holders.
#1 Seychelles The Seychelles is a renowned jurisdiction for the opening of offshore bank accounts; individuals can achieve asset protection in a financially stable and secure climate whilst enjoying 100% anonymity and heightened account privacy. One of the most favored aspects of the Seychelles as an offshore banking destination is that the jurisdiction’s governmental authorities have no direct access to bank information without a court order. In addition, there is no personal presence required to open a Seychelles offshore account.
Seychelles is favored not only for its high levels of privacy and banking protection, but also for its tax friendly climate; the country has 13 double tax treaties including Cyprus, Barbados, UAE and China. Further to this, the Tax Information Exchange Agreement (TIEA) is signed only with the Netherlands, making the Seychelles an excellent choice for individuals seeking tax and privacy benefits.
- Online banking access
- International wire transfer payments
- 1-2 days to open account
- Available banking currencies include but are not limited to USD, EUR, GBP and CAD
#2 Cyprus Although Cyprus is an EU member state and thus operates in accordance with the EU Savings Tax Directive 2005, information regarding interest paid to legal entities including trusts and foundations are not subject to the directive and as such, cannot be passed over to tax authorities. In addition, Cyprus authorities cannot obtain any financial or banking information regarding an account holder without a court order.
Cyprus bank accounts boast 100% anonymity and no personal presence is required to open an account.
- No initial minimum deposit is required
- No minimum balance is required
- Tax friendly jurisdiction with double tax treaties with 45 countries
- Access to online banking
- International wire transfer payments
- Banking currencies include USD, EUR, GBP and CAD
Belize offshore bank accounts have a credible reputation as a safe financial vehicle for asset protection and wealth management purposes. Banking institutions, which provide offshore accounts, are regulated by the Belize Central Bank in accordance with:
- The Banks and Financial Institutions Act 1995
- The Introduction of the Offshore Banking Act 1996
- The Money Laundering (prevention) Act 1996
- International bank cards
- Savings and time deposit accounts
- Exempt from local taxes or exchange control restrictions
- Accounts can be in any major currency including USD, EUR, CAD
- Account can be opened in 1-2 working days
- Access to online banking and bank cards
#4 Singapore Singapore’s domestic tax law favors offshore bank account holders in that the government of Singapore cannot access banking information on the account holders, information on investment gains, and bank-deposit interest activity under domestic tax law. Account holders therefore enjoy advanced levels of privacy and banking secrecy, as the government cannot pass over any financial information to the tax authorities of the account holder’s country of domicile.
As one of the world’s largest offshore financial centers, Singapore is widely regarded for its continued commitment to asset protection and banking privacy through the enforcement of strict secrecy regimes. One way of furthering your banking privacy is to open an offshore Singapore account under the name of a foreign entity such as a trust, foundation, or corporation. In doing this, certain situations may allow account holders to be exempt from reporting requirements on their personal assets.
- Accounts can be opened in any major currencies including SGD, USD, EUR and AUD
- Singapore remains a top financial center for stability and secure monetary controls
- Lowest tax rates in Asia
- Accounts can be held in gold
- Access to online banking
- International wire transfer payments
- ATM bank card with worldwide acceptance
- Quick set up (usually 1-2 business days)
- Online banking is available to all account holders, enabling transactions to be performed internationally
- Choice of either corporate or private bank account to suit your needs
- No fund transfer restrictions
- No tax on interest, investment income, inheritance, exchange controls and capital gains
- Dubai is a reliable and stable financial center with no tax exchange agreements with any countries
- Flexible banking system
- Dubai’s legislation favors the confidentiality and privacy of investors and account holders
Due to the European Union Tax Savings Directive 2005 – known informally as the automatic exchange of information – all EU countries are now restricted in the level of financial privacy they can guarantee to offshore investors. This has subsequently catapulted the popularity of banking in offshore locations, particularly in the Caribbean and Asia. Other agreements such as the Tax Information Exchange Agreement (TIEA) also adversely affect the financial privacy of individuals banking in countries member to the TIEA.
The future of offshore banking confidentiality Nevertheless, maximum banking privacy can still be achieved, legally, professionally and quickly by opening an account in one of the abovementioned locations. Not only will account holders enjoy anonymity, banking privacy and financial confidentiality with respect to their banking activities, but in many cases, they have the opportunity to open an account under the name of a corporation to achieve 100% anonymity and confidentiality.