Hi ,

During an event hosted in St Kitts and Nevis last week, an Ernst & Young (EY) tax specialist reiterated the importance of grasping the difference between citizenship and tax residency – a mistake still commonly made by journalists and lawmakers unfamiliar with the concept of citizenship by investment (CBI).

This is largely because economic citizenship in St Kitts and Nevis, for instance, does not qualify a person for tax residency, unlike other countries where the eligibility may be automatic.

Gibraltar Residency (Category 2 Individual Status), can be particularly useful for sovereign identity. Perfect for those who may wish to show a tax authority in a primary jurisdiction, that they are subject to taxation in Gibraltar, to persuade them that they should only pay a nominal amount of tax in their home jurisdiction. At the same time as they keep their taxation level in Gibraltar to a minimum.

Apply within for an introduction to Residency in Gibraltar.

Category 2 Individual Status is available to all non-Gibraltarian individuals who establish a residential address in Gibraltar, have not been ordinarily resident in Gibraltar during the preceding 5 years, and do not derive any income from Gibraltar sources other than from Gibraltar Tax Exempt Status companies.

• The Government of Gibraltar will normally insist that the address to be established in Gibraltar is purchased by the individual for his exclusive use during a minimum period of 7 months in a year, and that he resides in Gibraltar for a minimum of 30 days in each calendar year (which period need not be consecutive).
• The minimum costs of an apartment for this purpose will normally range from £300,000 to £500,000 and will have to be classified as an approved property for this purpose.

What are the advantages of Category 2 Individual Status?

• Category 2 Individual Status is obtained by application to the Financial & Development Secretary of Gibraltar, and once granted allows the individual to elect the level of taxation which he wishes to pay in Gibraltar while being guaranteed that his total tax bill will not exceed GBP £27,560 per annum. The minimum amount of tax payable in Gibraltar under this status is £22,000 per annum with the provision that the tax is only levied on the first £80,000 of assessable income.

It should be noted, however, that simply because a Category 2 Individual pays tax in Gibraltar, this does not automatically mean that they will not be taxed by one or more other foreign jurisdictions. It would obviously be up to the individual himself to ensure that this does not happen and that his tax affairs are arranged competently to accommodate an annual tax minimum commitment of £22,000 in Gibraltar (assuming that this represents a substantial saving to his tax bill in the country where he is currently tax resident).

Please note the maximum assessable income is capped at £80,000 with maximum tax payable £27,560. There are no allowances or deductions. Tax is payable only up to the maximum assessable income of £80,000. Any income in excess of £80,000 is not subject to tax in Gibraltar.

• Category 2 Individuals are only taxed on income remitted to Gibraltar.
• Additionally, in each year of assessment the Category 2 Individual will have to make a return to the Commissioner of Income Tax.

The individual can exercise an option before the termination of the year of assessment and advise the Commissioner that he shall be deemed to have a taxable income in Gibraltar in that year of assessment of £80,000 notwithstanding that the income remitted to Gibraltar is less than that amount. The advantage of this is that no tax return will need to be made to the Gibraltar Authorities.

Documentation to be presented before The Financial & Development Secretary together with the individual’s initial application

• 1 Curriculum Vitae pertaining to the individual seeking Category 2 Individual Status in Gibraltar.
• 2 Written references regarding the good character and financial standing of the individual in question from a lawyer, banker or accountant.
• Evidence that he and his family enjoy private medical insurance cover to include Gibraltar.
• A written undertaking from the individual’s representative in Gibraltar confirming that his client will abide by the Category 2 Individual Status conditions.
• A declaration from an accountant as to the estimated total net worth of the individual applicant which should stipulate a net worth in excess of GBP£2 Million
• A fee of GBP £1000. (This is not an annual fee, and is exclusive of any future tax payments made by the individual to the Gibraltar tax authorities).

Further documentation to be presented to the Gibraltar Immigration Department for the issuance of a Gibraltar identity card. The following documentation would be required to be presented in person by the applying individual after a period of about 2 to 3 working weeks from the time of the initial application:

• 2 passport sized photographs
• Evidence of Private Medical Insurance with cover to explicitly include Gibraltar
• 1 copy of the individual’s passport
• A fee of GBP £10

What a successful applicant can hope to receive from The Financial & Development Secretary

• A Certificate stating that he is registered as a Category 2 Individual.
• A Gibraltar identity card which is, essentially indistinguishable from a Gibraltar residency card and which is valid for a period of 1 year, but thereafter may be renewed via a relatively simple process which requires the applicant to be present in person.
• A receipt/certificate from the Gibraltar Tax Department upon receipt of the first payment of tax.

Annual Responsibilities of the Category 2 Individual

• To be present in person once a year for the renewal of his Gibraltar identity card.
• To submit a statement of accounts in June of each year to the Gibraltar Tax Department testifying to the amount of worldwide income earned so that tax at the agreed rate may be properly assessed.

There is no requirement for a full set of accounts to be presented, nor for the details contained therein to be audited.

Costs

The full costs for applying for category 2 status (inclusive of the GBP £1000 application fee payable to the government of Gibraltar), is from GBP £8000.

Digital Asset Management is a key reason why global market investors want a ''Offshore Crypto ! Capital Structure''

*Members in a financial structure designed for crypto currency trusts, seamlessly invest and trade in a regulatory and tax compliant environment.

For the members*, this represents the ability to seamlessly invest and trade assets through a retirement Trust vehicle. Members can enjoy the benefit of accruing value tax-free and ultimately distributing the income to some members on a tax-exempt basis in many jurisdictions.

Any transaction in a crypto curreny/ token is either registered or ''exempted'' from registration.

Financial Institution ''Exempted from Registration'' is Legal Non-Disclosure Reporting.

The Automatic Exchange of Financial Information (AEOI) The Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) call on tax authorities of participating countries to obtain financial account beneficial ownership information from their financial institutions and automatically exchange that information with other countries on an annual basis.

Comprehensive cross-border transfer of peoples most sensitive financial records

This comprehensive cross-border transfer of sensitive financial data between jurisdictions raises important privacy and data protection concerns. Information may be used for other purposes where such use is permitted by the laws of the sending jurisdiction and is authorized by the sender.

Rules on reporting but there are no rules on data management

Within the CRS are rules on reporting but there are no rules on data management. What this means is that the use of financial data can potentially be expanded beyond its intended purpose of combating tax evasion.

Governments all over the world have instant access to peoples financial records, your financial structure must be compliant

Governments all over the world have instant access to people’s most sensitive financial records including bank accounts, assets, income, insurance, interest paid, capital gains, property ownership, investments, crypto currency, tokens, sale of real estate, and more.

The Offshore Capital Structure Blueprint is ideally suited for a Cryptocurrency Investment Fund. Basically, anyone with business cross-border that needs to protect and grow assets with legal systems and defer taxes on capital gains and accumulations, while creating a transparent, globally tax compliant profile.

Annually the 402(b) Custodian of an Offshore Capital Structure is excluded from reporting the value of your tax deferred account. YOU file to the IRS Form 8938 “Zero value” and you report the actual value on the FBAR Form. This process validates transparency with the IRS. The Custodian is specifically an excluded FFI by FATCA.

The information can be found here: Offshore Capital Structure

By Larry Sanger, cofounder of Wikipedia

THIS MESSAGE IS mainly for the leaders and enthusiasts of the broad-based movement toward decentralizing content, but especially social media. I’m not trying to start a new project or organization—after all, decentralization is what I am encouraging. I’m partly trying to start a conversation among individuals, to get them thinking and talking—but on a massive scale. But I’m also trying to inspire people to action, to come together and go the last mile to achieving robust and extremely widespread decentralization.

I’d be championing decentralization, and I’d be up in arms about where the social media giants have been taking us, especially in recent years, even if I weren’t CIO of Everipedia, which is decentralizing encyclopedia writing. Like many of us, I’m incensed at Big Tech for their increasingly bold and arrogant incursions into both our privacy (which puts our information security at risk) and our free speech. As power has come to be concentrated in the hands of Big Tech corporations, they have increasingly posed a threat to our rights. So I’m impatient to see decentralization happen; only with the same decentralization on which the Internet itself is built can we hope to secure our rights to privacy, information security, and free speech.

I recently wrote a proposal on how to decentralize social media, and it got quite a bit of traction and discussion. The response amply underscored two facts: First, there is a huge amount of support, latent or explicit, for the idea of decentralizing social media; second, there are plenty of very smart people already at work on various aspects of this vision. (Continued…)

Read the rest of the article in Wired by clicking the link below:

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