Invest Offshore Newsletter

Published: Thu, 12/31/15

Newsletter Issue #98 Invest Offshore
 
 

December 31, 2015
Offshore Investment Guide

Dear ,

Happy New Year 2016

Happy New Year

Planning on hiding behind a double blind trust?

Things have changed that make you a target now.

Need a compliant tax, reporting and asset protected structure for International Projects?

IRC 402(b) is the only compliant tax deferred mechanism for both funders and participants that is Government regulated, registered and recognized non-disclosure.

Old financial strategies like the double blind trust no longer function:

  • U.S. and international regulatory exchange of information agreements directly target ''hiding behind'' financial account entities
  • Trusts, Foundations, IBC, LLC and Life Insurance Policies are now a red flag pointing at you
  • The U.S.A., O.E.C.D and 13 other countries seek out and share financial account reporting
  • The International Monetary Fund and the World Bank seek out illicit transfer of money abroad
  • The intermediaries dealing in entities abroad are themselves committing criminal offense

The ONE safe method is transparency that retains non-disclosure, secret and private benefits.

IRC 402(b) is exempt from foreign financial account reporting in the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) of the O.E.C.D. and 13 other countries.

Only this specific entity can be used to defer income as tax deferred on gains and accumulations outside the U.S. that is registered in Double Tax Agreements, Tax Information Exchange Agreements and by the Internal Revenue Service W-8BEN-E box 29e as Secret and Private. Which means there is no W-9 filing.

  • FATCA reporting exemption is registered and recognized
  • Exempt from international tax disclosure reporting
  • Transparent yet not included in worldwide taxable assets
  • Can invest tax free in U.S. real estate
  • This IRC 402(b) can invest in businesses (projects), real estate and securities globally
  • Tax paid on income only when withdrawn
  • Can be used for Funders and Custodians globally
  • Can be used for Project Participants globally
  • Can be used for Project Employees - substantially reduces payroll costs
  • Contributions to IRC 402(b) is exempt from Trust reporting and a deductible business expense

Be safe and secure world-wide Contact us today for a free report and consultation.


Economic Law and Market Timing
from a recent Q&A with Arthur Fixed

Q: How does your system differ from a cycle analysis? Martin Armstrong has been very successful using cycle analysis.

A: I don't use a system I claim authorship for. I apply the laws of economics to the facts at hand. I use the scientific method — observation to get the facts — and logic to properly evaluate their relevance. Where a dominant cycle is "controlling” a price movement, this will play out in a manner consistent with economic law. Cycles don't contradict economic law. I use cycle analysis as a confirming indicator. Frequently, there's more than one cycle to consider, and sometimes a cycle movement could have more than one possible result. I believe that applying economic law is more secure than cycle analysis, but I do regularly read Martin Armstrong and David Stockman, Marc Faber, and Gerald Celente. They help clarify the application of premises set forth by Ludwig von Mises and Murray Rothbard.

Q: Tomorrow is the winter solstice. Will that cycle have an effect?

A: Yes. I will be spending less time in the office. I will start looking forward to spring and the Chinese New Year on February 8, 2016.

Q: Larry Summers, interviewed on Bloomberg this week, said the reason government economists where unable to predict any of the recessions since WWII was that the economy is too complex to predict and that making such a prediction would contribute to pessimism and therefore be self-fulfilling. How do you explain the economists' incompetence?

A: I do not think they're incompetent, unlearned, or dumb. They are doing their job exactly as they're being paid to do it.

Q: I do not follow. Please explain.

A: This is an important issue that deserves close attention. Government economists are among the 97% producing propaganda deliberately designed to mislead. They perform the same function as the priesthood did during the Middle Ages. The priesthood's job was to keep the peasants working on the land for the nobility. Read the Magna Carta, on public display at the British Museum of History, and it will be clear. The text says: God created the earth; J C was the only begotten son of God; Peter was the agent of J C; the Pope was Peter’s agent; the Pope gave the British Isles to the King in return for his loyalty; the King gave the land to the noblemen in return for loyalty; and the noblemen gave the peasants use of the land in return for their loyalty, which included payment of taxes, military service, etc. Therefore, the peasants must follow the noblemen's orders because the nobility's rule is legitimized by the divine right of God. The economists know they are being paid to lie. They know their function is to fool the sheep so the sheep don't rebel and allow themselves to be shorn. The economists know their pay is several times larger than what they could earn for any job they're qualified for in a free market. Most of the intellectual class plays a similar role. The recent Paris Agreement promises global warming academicians 100b a year for their studies. The next time you hear an economist mention full employment or the general welfare, etc., think 'divine right of kings'.

Q: That's a very interesting historical presentation but how does it help me trade gold mining shares?

A: If you start with an erroneous premise, your conclusion will be faulty. Government economists are not stupid. They understand what they're being paid for. They serve the parasites controlling the instruments of government. In general, expect the opposite of what they say to be true. This will take you at least one step closer to understanding reality. And knowing the truth may be 97% of what you need to win.

Q: How do you differ from other investment advisors and financial managers?

A: I do not deal in investment nor do I render standard financial advice. What I am offering is a pure speculation based on the application of economic law. I do not take custody of client funds. It is possible to enter into a contract in which I would give information needed to take advantage of a financial opportunity. This requires you to have funds in your bank or brokerage account and to give the trading instruction to your bank or broker. If I were to take custody of client funds or securities or put in buy and sell orders, I would require registration, licensing, and supervision by multiple bureaucrats.

Q: Registration would permit you to advertise and substantially increase your business. Why don't you do that?

A: I've had every registration imaginable in the past. I do not wish to talk to bureaucrats. Results are likely not as good with bureaucratic intervention for two reasons: the time and cost of dealing with bureaucratic regulation and the fact that the system I use is inherently anti-bureaucrat and therefore likely to invite bureaucrats to undermine the business. Also, I only want people who have paid for the advice to have it. I will not invite the bureaucrats to take a look.

Q: Could you summarize what you do, focusing on how you differ from the standard business model.

A: Certainly. First, I use economic law to identify an opportunity and the timing. This may sound simple. It is not. Ninety-seven percent of everything written about financial matters is propaganda deliberately designed to mislead. My book covers this in detail. Second, I use leverage and compounding to increase profits. This is explained in materials located in www.stcredit.ch' private client section (access requires instructions and a password). And third, I work at staying in top physical, mental, and emotional form so that I can do one and two better. That is beyond the scope of this blog. It will be treated in my upcoming book.

Market Commentary (above) by Arthur Fixed

The Art of Speculation during Civil War


PRC Offshore Life Insurance

The International Monetary Fund and the World Bank are pressuring the Peoples Republic of China to get corruption and bribery out of their tax system and the illicit transfer of money abroad. The intermediaries they are dealing with are themselves committing criminal offence.

It is a criminal offence to deal with money or assets of any description anywhere in the world that objectively, reasonably could be expected to be the proceeds of tax evasion. If that non-disclosed money appears as an illicit transfer of money the intermediary who facilitated that is perilously close to having committed a crime. PRC tax authorities enforce now little-known and widely ignored regulations.

The Beijing billionaires who set up cryptically named companies in the British Virgin Islands to hold their fortunes are in the cross hairs. So are the Guangdong salesmen living and working in Africa and Latin America. China’s tax officials are now demanding that citizens start reporting exactly how much money they earn overseas.

In asking for this information, national and municipal tax agencies in China are quietly beginning to enforce a little-known and widely ignored regulation: Citizens and companies must pay domestic taxes on their entire worldwide incomes, not just on what they earn in China.

“Chinese tax authorities’ more strictly enforce worldwide taxation, which has always been required of Chinese individuals,” said Edmund Yang, a PricewaterhouseCoopers partner in Beijing. Hiding assets or pretending someone else called ”Aunty”, a business, trust or nominee account owns them puts you at criminal risk needlessly

Banking secrecy is no longer there. That’s gone. It is over.

The transition to financial transparency for the entire world of money is not an option, but a necessity in the new dawn of governments gathering and sharing your financial information.

The roots of China’s decision to embrace worldwide taxation trace to the early 1990s. Still a very poor country then, China sent teams of tax officials to the United States, Britain, Germany and other nations to seek advice on drafting a modern tax code. The team paid a long visit to the Internal Revenue Service and was given a two-volume bound copy of the United States tax code and a five-volume copy of Internal Revenue Service (IRS) regulations.

Chinese officials chose the American definition of income, with its worldwide scope, in issuing their tax code in 1993. It remains in force today, although with many amendments.

China has taking the first steps to enforce that broad definition. The government of Guangzhou, the commercial hub of southeastern China, have summoned executives from 150 of the largest corporations to explain the obligation of their employees to pay Chinese taxes. Municipal governments in Beijing and other big cities have contacted big companies in their jurisdictions and told them to provide detailed information on incomes.

The State Administration of Taxation in Beijing has a separate campaign to curb tax evasion by Chinese companies that make overseas investments. New rules made in 2015 ban a wide range of international investments deemed to be tax shelters.

The rules hit many wealthy Chinese individuals, who commonly make their overseas investments through specially created companies, often located in the Caribbean.

Enforcement of the tax regulation and compliance had been low partly because China lacked data on its citizens’ overseas earnings and investments. But the Chinese government has seized on the continuing United States effort to gather more information on the overseas activities of American companies and citizens which uncovers Chinese persons in the process. China has agreements with the United States and other countries to share information on overseas financial accounts belonging to Chinese citizens. The Chinese tax enforcement effort comes as overseas investments by Chinese individuals and companies surging, national tax officials are looking for ways to collect on that trend.

Local governments are seeking new source of tax revenue to offset dwindling revenue from other sources.

The finances of local governments across China have deteriorated considerably in the last two years. Sales of government-owned land to developers for apartment buildings and office towers have dropped as real estate prices have fallen and housing starts have tumbled. At the same time, Beijing has overhauled its system of business taxation to the disadvantage of local governments.

Local governments used to assess a tax of 5 percent on the revenue of most businesses in service industries and real estate, and shared part of the proceeds with the central government. Beijing is phasing out these taxes in favor of value-added taxes, which go directly to the central government. That has given municipalities a powerful incentive to step up enforcement of individual and corporate income taxes, which they still collect and then split with the central government.

While China is taking a page from the United States playbook, Beijing’s tax policies in some ways are even tougher.

The top income tax bracket in China is 45 percent, compared with 35 percent in the United States. That top bracket for the Chinese also kicks in at $12,900 a year after deductions, a much lower income level than in most industrialized countries. In China, overseas citizens are eligible only for an extra deduction of $210 for each month they are overseas.

Tax and regulatory protection is an ORS402(b) occupational pension which is Hong Kong Government regulated, registered and recognized by the People’s Republic of China (PRC). Contact us today for a free white paper and/or set-up a private Skype consultation.


Privacy and Secrecy Offshore

Keep your financial secrets where they are protected by international law by all governments.

Privacy and Secrecy in an ORSO 402(b) Financial Account is Formally Recognized by All Governments including the People Republic of China and the United States of America for Tax Deferral.

The old Tax Haven hiding strategy no longer works because who can you trust? Since we know that that you can't trust a bank, as well; you can't trust a Trust and you can no-longer hide behind a nominee financial account. Further, in the distant past there were people who used anonymous bearer shares; those have been abolished too. So what's a person supposed to do, to protect the family wealth?

The legal basis for a 402(b)

The legal basis for a 402(b) client really boils down to two things that count. One is that there needs to be growth (contributions) rather than a capital injection. Secondly , is the W8 BEN-E. The client needs to have somebody who is able to sign it. Whether it is you or me or someone else that the 402(b) Trustee authorizes, the client has to have it. Without that there is nothing because an account can't be operated without it.

Regardless of the headlines the client needs to forget about capital injection and go for predictable growth which is something that is not abusive and he needs to be in a position where he can get someone to sign a W8-BEN-E for him.

Thirdly , has to do with what is happening to IRA's. You have seen the analysis that people are pumping IRA's full of low price, pre-IPO's stock and when the IPO blooms somehow or another that is supposedly a magic call. So these people are looking pretty slippery, well they are not slippery as the IRS is investigating them now.

The difference between the IRA onshore and the 402b offshore is the 402b message that needs to get across is that the 402(b) is different because you are not asking for tax breaks up front. You are asking for tax breaks later on and the later on is all that counts and it has to be sensible and justifiable.

Tax Law, Securities Law, Trust Law are all subordinate to Pension Law. IF someone says they have or want a trust then they have or want something that has no tax advantage for themselves....yes their are trusts whereby you give your money away forever and therefore lower your future tax bill but you can achieve the same result by standing on a street corner and giving your money away...The point is that we are talking tax strategy that gives you a benefit for YOU.

Contact us for more information


How to Avoid International Tax Pitfalls

The Regulatory Landscape Globally Has Changed These Changes Can Not Be Ignored

As a result many old and new rules regarding pension assets held by employees outside their country of residence are enforced to a far great degree than they ever have been before. Tax authorities, for the first time, have easy access to information about your assets.

Foreign bank accounts and Foreign Trusts with an ''International Retirement Plan'' label on them no longer function in the new dawn of inter-government regulatory exchange of foreign account financial information.

Banking Law and Trust Law don't function for multinational pension plans.

There are new rules on how to invest overseas and you can take it that all forms of overseas investment structures or forms should be regarded as reportable and subject to tax except for one.

We are the One Stop Solution to Government Regulated, Registered and by Government and Governance Recognized International Pension law In short, this internationally (Common, Civil and Sharia Law) recognized retirement plan structure allows for secrecy, privacy, asset protection and tax and succession planning for multinationals and high-net worth individuals worldwide in full non disclosure financial institution reporting and individual tax compliance.

Contact us today for the corresponding white paper - 402(b) and/or a free consultation.

Invest Offshore

 

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Disclaimer: This document was produced by and the opinions expressed are those of Invest Offshore as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Invest Offshore to any person to buy or sell any security. Any reference to past performance is not necessarily a guide to the future. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Invest Offshore does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof.

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