Dear ,

Recently we've had so many inquiries about tax deferral for cryptocurrency and the establishment of offshore funds dedicated to BitCoin trading, that we're responding to the demand by having our legal team research the global tax implications of this new burgeoning asset class and how the regulations are changing, country by country.

Please contact us if you are a newly minted BitCoin Millionaire in need of offshore asset protection.

Structure Cryptocurrency Offshore - The Only Tax Rules Compliant and Double Tax Agreements Non-Reporting and Excluded Account

The pension regime is very important internationally and one thing the OECD organization has done amazingly well is Double Tax Agreements.

They have come out with an amendment to the OECD model double tax agreement that introduces a completely new concept, which is very beneficial to specific pension funds; by defining what is and what is not a recognized plan.

A recognized plan is a non-reporting and an excluded account.

This is where compliance is a legally binding position in FATCA rules, CRS rules, DTAs and OECD agreements. This specific pension law is actually defined in several different tax laws as being recognized, certificate of tax resident and legally binding; which means that holders of these pensions can not be accused of being involved with a tax avoidance scheme. Therefore, being recognized is not a law firm opinion or an attorney sales pitch because this structure is registered in several different tax laws.

Retirement law is not a tax haven, insurance product or company, nor a personal trust. Internationally recognized retirement law is carved out under the Foreign Account Tax Compliance Act (FATCA), carved out under Common Reporting Standard (CRS), Automatic Exchange of Information (AEoI) and specifically mentioned in Double Tax Agreements (DTA); unlike banks, law firms, LLC's and insurance companies.

This is the only type of existing foreign financial account that individuals can use to defer income on gains and accumulations. That it is a tax rules compliant and excluded account

The electrifying reaction today is that the ''on balance sheet'', the ''off balance sheet'' and the old bribery stuff that has been used in the past e.g. BVI, Cayman, Panama, Switzerland and Trusts do not work now. If those who are providing those structures are non-compliant it leads to money laundering charges; conspiracy to defraud.

This pension law solution may not actually work for some because current capital holdings can not be injected as a pension contribution. Capital can be acquired into a pension.

To find out if you can set up a pension fund that can acquire your capital request our white paper , ''How to Structure Capital Offshore''.

A Clean Nominee Bank Account for cash flow that is a specifically recognized category by tax authorities as not being your income

For the purpose to ensure that taxpayers pay the right amount of tax to the right jurisdiction, the Automatic Exchange of Financial Information general rule is that the cash flow is automatically income to the person in command and control of the cash flow. That means that cash flow is your income unless it is specifically recognized category by tax authorities as not being your income.

The freeway to receive funding gross rather than suffering a current tax is the Clean Nominee Bank Account structure because this cash flow is recognized as not income and is a non-reportable financial account ”deemed tax compliant” exempt beneficiary that is not subject to tax’.

Raising capital for projects and investments can be exempt from insurance and securities regulations. In reliance on its permissions and exemptions, the Clean Nominee Bank Account framework will facilitate issuers’ access to new markets streamlining the issuers’ licensing and compliance requirements.

The Clean Nominee Bank Account is not a tax haven, insurance product, company or a personal trust. International recognition is carved out under the Foreign Account Tax Compliance Act (FATCA), carved out under Common Reporting Standard (CRS), Automatic Exchange of Information (AEoI) and specifically mentioned in Double Tax Agreements (DTA) and Intergovernmental Agreements (IGA), unlike banks, law firms, Trusts, LLC’s and insurance companies which are not even mentioned.

Assets held in this Clean Nominee Bank Account are recognized globally as not included in worldwide taxable assets and not subject to any social legislation.

Historic structures: transfer pricing, diverted profit tax, carried interest no longer function for offshore tax planning.

Investment vehicles require a look at what the future is to be.

Governments and governance look through everything. Everything is considered a tax avoidance scheme except that which is formally recognized and registered as not.

Excluded does not mean to include it just in case.

Practical application examples of asking the right question:

1. Direct investment in Real Estate projects are subject to capital gains tax.
2. Providing project financing via a Clean Nominee Bank Account, pension fund structure, is entirely different than a direct investment into real estate. In other words, it depends on how the pension fund, which owns the finance company, is providing project financing. For example a profit share of a development is legally different to the sale of those properties by that pension fund.

Project financing is not a gain on real estate it is a gain on having put up the money and Double Tax Agreement* specifically deals with capital gains with exception.

* see s.323 Tax Exemption from FIRPTA for U.S. property exemption

Knowing the right questions for offshore tax planning and the right structure are reasons tax attorneys with experience need to be engaged.

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