!! # OFFSHORE SERVICES Company Formations, all offshore services banking

The following summary looks at the world of tax havens and tax saving locations world-wide. There are about 33 jurisdictions worldwide that qualify as tax or finance havens. A partial list includes:

Caribbean: Antigua, Belize, Bermuda, Bahamas, Barbados, British Virgin Islands, the Caymans, Costa Rica, Dominica, Grenada, Netherlands Antilles, Nevis, Panama, Turks and Caicos;

Europe Offshore: Channel islands, Cyprus, Gibraltar, Guernsey, Isle of Man, Jersey, Malta, & Sark;

Europe Mainland: Austria, Hungary, Latvia, Liechtenstein, and Luxembourg & Switzerland;

Pacific Rim: Cook islands, Hong Kong, Marshall Islands, Nuie, Thailand, Philippines & Singapore.

THE WELL KNOWN TRADITIONAL HAVENS OUR RATING:

**** Switzerland - Regardless of what some people claim Switzerland is still a good place to bank compared with most other countries. For over 300 years Swiss banking secrecy has been protecting funds entrusted with Swiss banks. The banking Tradition that forbids bankers to disclose any information about his clients dates back to the days when Geneva's Protestant bankers secretly lent funds to the (catholic) kings of France Swiss bank, secrecy is strictly regulated by both civil and penal law. Violation of bank secrecy is thus punished twice: firstly by a prison sentence for the banker according to penal law, secondly by a fine for the Bank and by damages for the client whose banking information has been released. Switzerland is unusual in Europe in that they attach greater importance to the respect of privacy than they do to taxation matters. No Swiss Bank has the right to inform, even the Swiss tax authorities, of details relating a clients transactions, but when it comes to foreign tax authorities they have even less rights. Because the Swiss do not consider tax evasion to be a crime they will not comply with any requests for co-operation under any tax related mutual assistance treaties which are received from foreign governments. Switzerland and Liechtenstein both receive our maximum rating.

**** Liechtenstein - All that applies to Switzerland applies to Liechtenstein, in fact, even the currency is the same. It has to be said however, that when making a comparison between the two, Liechtenstein wins because it is much smaller and somewhat more discreet than Switzerland. The main reason for this being that it would be very difficult to get tax spies into the banking centre of a small country of only 30.000 people where virtually all the bankers know each other. Of course they may persuade someone to leak information but as far as we know it has never happened and if it did he probably wouldn't last long. The only drawback with Liechtenstein is that whilst Zurich airport is excellent (my personal favourite), Liechtenstein is far less accessible as it doesn't have an airport itself and this necessitates a one hour drive from Zurich, on the other hand if you are not in a hurry it is a pleasant drive through the mountains and an excellent place for a weekend away, at any time of year.

** London. - Still Europe's financial capital, no end of helpful companies operate in London and the banks are straightforward to deal with, the only drawback is that the whole country is getting a bit like the USA with obsessions about money laundering.
http://www.dedicate.co.uk/@uk/england/england-tourist.htm

** United States - Wire transfers into the USA clear through New York and it is America's financial centre, is it a tax haven? No, is it discreet? Another no, the Internal Revenue Service (IRS) and Financial Crimes Enforcement Network (FINcen) can nose around any account at anytime. The USA is OK for keeping a small USD account, but privacy is non existent. So why is it here you ask? The answer is that although it is not a tax haven a wide range of communications facilities are available and in addition a Delaware or Wyoming LLC corporation can be used to maintain zero tax liability, at minimal cost (annual fees only �220 / $350). The biggest plus is that an American LLC does not look like a tax avoidance device, after all what looks best on headed paper Incorporated in the Cayman Islands or incorporated in Wyoming USA?
http://www.usatourist.com/

NOTE: USA scores ** but Wyoming and Delaware LLC's rate **** as corporate vehicles

** Hong Kong - A major offshore banking and company formation centre but since the July 1997 hand-over to China things are not looking so good. Many people think ' but it's self governing and it is unlikely the Chinese will disrupt things' but bit by bit they are tightening their grip. Whilst it seems OK at the moment try telling a Tibetan you think the Chinese are probably OK and I am sure he will have a few words to say. Our advice is to avoid it, why take the Chance? The world is full of alternatives. http://www.hkta.org/intro.html ** Singapore- Not a tax havens as such but wealthy Burmese, Thai, Hong Kong and Malay have banked in Singapore for years and it seems very stable, apart from the current currency instability in the area. Although Indonesians also choose Singapore due to the problems of corruption at home in their own banking systems and utilise both banking an trust formation services. The soaring costs and rigid supervision in the financial services area since the Nick Leeson scandal make the place less attractive.
http://www.singapore.com/cgibin/var/online/var.htm

*** Luxembourg - Luxembourg is one of the oldest and most established banking havens in the world. Until recently it was prohibitively expensive to bank there. Incorporation laws do not promote Luxembourg as a good place to form IBC's, but banking secrecy laws were recently reaffirmed, making it an excellent choice for discreet banking and investing, especially recommended for Non-EU Passport holders. Luxembourg also has the advantage over non-European Union member Switzerland, in attracting funds from high-tax neighbours such as fellow EU nations Germany and the Netherlands. A possible drawback: Future EU moves to limit banking secrecy and co-ordinate taxation.
http://www.luxweb.lu/

** Channel Islands (Jersey and Guernsey) - So popular that some private banks there are raising the minimum amount required to open an account to over US$ 100,000.00. Guernsey and Jersey have their own legislatures, and are not part of the United Kingdom both islands are internally self governing and issue their own passports, levy their own taxes and have a separate legal system. The UK government is responsible only for Defence and foreign affairs, other than this the islands are independent, although the British Labour government is continually sniffing around attempting to cause problems even though it has no constitutional right to interfere in the islands internal affairs. Contact us for a copy of the Edwards Report before doing serious business in the Islands. http://www.jersey-mail.co.uk/jsyinfo.htm and http://tourism.guernsey.net/contents.html

*** Andorra - This little mountain tax haven in the Pyrenees has discreet banking, modern communications and zero income tax, even property is reasonably priced. France and Spain originally governed Andorra but it is now totally self-governing. In our opinion it is well worth a look whether for tax benefits or just a spot of skiing. http://www.xmission.com/~dderhak/andorra.htm

** Isle of Man - Another possession of the British crown, similar to Jersey and Guernsey. Like the Channel Islands the Isle of Man is separate from the UK and is internally self governing and issues its own passport, levies its own taxes and has a separate legal system. The UK government is responsible only for Defence and foreign affairs. Other than this the island is independent although the British Labour government is continually sniffing around attempting to cause problems which it has no constitutional right to do. Future problems could include new rules from the European Union, which might affect the Isle of Man even though the Island is not a member. Our opinion is that the main problem of relations between the IOM and the EU is the IOM's willingness to comply with various legislation, even in spite of the negative long term effects on its economy. Stay tuned! Regardless of the EU problems high incorporation and annual costs, and ties to England make it a secondary privacy haven in our opinion. The corporate taxes based on profits are no thrill either.

*** Mauritius - An island off the coast of Africa, Mauritius has become a kind of tax haven without really trying, with most of the money being deposited by rich Indian businessman and families, what does the future hold? Based on our experience this is an up and coming jurisdiction evidenced by the fact we sold only 2 Mauritius companies in all of 2000, but 28 in the first 6 months of 2001. Japan - With the Chinese take-over in Hong Kong, offshore banks have been allowed to set up in Japan but they can only work with non- Japanese individuals or subsidiaries of Non -Japanese companies, as they cannot operate in the normal Japanese market. They are pretty well unregulated in Japan and outside the Jurisdiction of the parent company. As a result they are in a kind of no mans land. We have heard they are very helpful but if you have any details E mail us at info@alloffshoreneeds.com.

Macau - Macau reverted to Chinese rule at the end of 1999 and is trying to promote itself as some sort of offshore centre. Frankly, it has serious crime problems and the bulk of the money is probably tied up in the Casinos, which are the major attractions, as most Chinese are keen gamblers. Moving to a lighter note relating to the Chinese interest in gambling; I was once in London's China Town when a fight developed between two dogs, one an Alsatian the other a Mongrel, I couldn't believe my eyes when I realised that the Chinese guys standing around were suddenly gambling on the outcome, within seconds of it starting money was rapidly changing hands in all directions and from the noise of the people howling at each other in Cantonese you could easily have been in Kowloon! Clearly, if you like gambling Hong Kong or Macau would probably suit you and no doubt a few offshore facilities could be arranged as well.
http://turismo.macau.gov.mo/

Bangkok - Thailand set up the Bangkok International Banking Facility scheme to promote its capital as an offshore banking centre. In 1994 Singapore's United Overseas Banking Group upgraded its representative office there to the status of an offshore branch. Unfortunately the comparatively recent crisis in the value of the currency and the equity market may keep Bangkok from ever seeing the brighter side of success.
http://tourismthailand.org/

The Cook Islands - The Government of the Cook Islands is committed to the continued success of the industry whose contribution to the Cook Islands economy is now second only to tourism. The trust companies have paid annual fees to the Government of approximately $2 million for the past few years. That revenue base is increasing as the industry continues to grow, servicing markets in Asia, Europe and the Americas. The outlook for the industry is good. Historically the Cook Islands have long been an offshore home for New Zealand money, rather like the role of the Channel Islands to the UK. The Cooks and Nauru may be too remote for most serious players in the offshore game, having said that with modern communications many people feel the location is not as important as the facilities available and in this area they are good contenders with a wide range of formation services and trust facilities, although some shaky laws in the Trust Act and the susceptibility to US influence, make it a secondary choice for many people. One advantage in the Cook Islands is no recognition of foreign judgements, One year statute of limitations for fraudulent transfers is also the shortest, making them popular for some. Up and coming but not really a serious contender yet, keep an eye on the Cook Islands though, things can move fast. http://www.polynesia.com/

*** Vanuatu - Vanuatu is a true international finance centre, established in 1971. It is serviced by a professional infrastructure of accountants, banks, lawyers and trust companies. The finance centre has the following features: There is a complete absence of income tax, capital gains tax, withholding tax, estate duty. There are no exchange controls and no reporting requirements in relation to movements of funds. Port Vila (the capital) has first class international communication facilities, with its own earth satellite station and twenty-four hour telephone, telex and facsimile transmission facilities. The democratically elected government is strongly committed to the development and promotion of the finance centre. Confidentiality is assured, particularly for offshore entities, by means of strict secrecy provisions contained within the various pieces of legislation to which they relate.
http://www.paradiseadventures.com.au/vanuatu.htm

The Caribbean has lots of places to minimise tax and maintain corporate and personal financial secrecy. Bahamas - The Bahamas levies no taxes on capital gains, corporate earnings, personal income, sales, inheritance or dividends. A Two-year statute of limitations applies for fraudulent transfers. Freedom from Tax means the Islands, of which there are over 700, are still a great place to do business. The Bahamas is actually the third oldest democracy in the world, so excellent political stability. Quite good for IBC's although not anonymous and banking secrecy is not as good as it once was, but respectability can count for a lot and the Bahamas are a well regulated jurisdiction.

** Bermuda - The domicile of choice of Hong Kong companies since the 1997 hand over. No taxes on income, profits and capital gains. A recent vote to stay under British rule should help bolster the already heady status of Bermuda.

**** British Virgin Islands - British Dependant Territory. Has become a bit tougher lately, requiring personal appearances to open some bank accounts and other transactions. No taxes on IBC's, but weaker trust laws. Banks monitored by the Bank of England means stability but also possible snooping. Miami - Not a tax haven but the closest part of the USA to the Caribbean a major offshore centre for private banking clients in Latin America. The glaring problem is the tainted reputation of drug-laundered money and illicit gains.

*** Cayman Islands - The British Crown Colony of the Cayman Islands consists of Grand Cayman, the sister islands of Cayman Brac and Little Cayman, in the Caribbean Sea. None of the islands has any rivers, but vegetation is luxuriant, the main trees being coconut, thatch palm, seagrape and Australian pine. This small nation boasts US$450 billion in deposits and managed money making it the largest offshore financial centre in the world. The Caymans also face the same sort of money laundering problems as Miami, but there are no capital gains taxes, income taxes or profits of any kind and the government has done a pretty good job of cleaning up the crime problems. Unfortunately the Caymans have lost much of their lustre last year when they caved in to US authorities. Other drawbacks are that IBC set up is expensive and IBC's must have local meetings.
http://caribbeansupersite.com/cayman/index.htm

Grenada, West Indies - Recent investments of Billions of US dollars is turning this jurisdiction into a terrific potential source of offshore activity, including good private banking resources. The newness of it prevents some of the major world banks from accepting IBC's yet, though keep your eyes on this one! Netherlands Antilles - Home of the spectacular and famous Quantum Fund managed by George Soros and with branch offices of more than 50 international banks including the likes of ABM AMRO and Deutsche bank ,they will remain a smart choice for the educated money. ** U.S.Virgin Islands - This is the only U.S. tax-free haven in existence. The weather is phenomenal all year round with the exception of the odd hurricane. Also, a place where you can relax and spend an extended holiday.

** Gibraltar - Hampered by territorial squabbling between Britain and Spain. The problems with deliberate obstruction at the border are a major headache. Having said that, we have FOUND THAT it is an excellent place to operate from, whether you set up business here or simply live in another country and operate through Gibraltar. So what is available? Modern Communications, reliable postal services, company formations, sophisticated banking and if you set up here you can operate using Spanish GSM phones within Gibraltar, but receiving from transmitters in Spain. The other advantage (or disadvantage depending how you look at it) is that the minimal contact between Gibraltar and Spain opens up multiple privacy possibilities. One unique benefit of Gibraltar is that it is the only part of the EU which doesn't levy Value Added Tax, this means some of the Channel Islands benefits are also available here but with EU membership thrown in. Downside are the continual new rules from the European union and a register of shareholders is required to be kept in Gibraltar. Shareholders and directors are public record requiring nominees. On the plus side, Gibraltar is highly stable with no recognition of foreign judgements. No income tax for IBC's and a two year statute of limitations for fraudulent transfers.
http://www.alloffshoreneeds.com/

***Cyprus - Carving a niche in the Russian offshore banking businesses and establishing itself as an attractive alternative has proven to be the path to Cyprus's elevation into the offshore big leagues. The authorities are introducing secrecy regulations and tax incentives. The major drawback is the distinct division between Greek and Turkish rule and the fact another war cannot be totally ruled out. http://www.cyprustourism.org/

** Malta - Has strict secrecy provisions and double-taxation treaties with the EU and other European countries. THE GULF STATES ** Bahrain - Bahrain is one of the financial services centres of the Middle East. Utilising sophisticated worldwide communications, it serves both a regional and international clientele and provides a complete range of financial and banking services including well-developed offshore facilities No taxation and free foreign exchange movement combined with a Stable currency and banking environment, make this Middle Eastern centre well worth a look. ** Dubai - Popular with the wealthy in India and has the potential to take business from Bahrain, if Islamic fundamentalism gets a strong hold. Quite useful for various niche banking arrangements.

*** Belize - Is a beautiful by nature, independent country located on the Caribbean coast of Central America. This young nation is in a dynamic process of development and has introduced the most modern legislation tailored at offering the very best and secure offshore financial services. Belmopan is the administrative capital and the seat of government. Belize City with a population of 60,000 is the major commercial centre. The official language spoken is English, but Spanish is widely spoken, and many Belizeans are bilingual in English and Spanish. The Climate is sub-tropical with an average temperature of 80OF. The recent challenge by the SEC left the US regulators cold and they held up like a champ! NO recognition of foreign judgements, total privacy for IBC's. Permits bearer shares. No registration of shareholders required. Great for IBC privacy.
http://www.belizenet.com/btbdirectory.html

Costa Rica - is only popular in the US and Canada because of all the press about Americans retiring there in recent years, and for that reason has become kind of a prima Donna of sorts, with expensive real estate and less privacy. Strong ties to the US include sharing of information with the IRS authorities from some banks. We only utilise Costa Rica for some Trusts and private banking.

*** Panama - Panama represents an excellent choice for the formation of an offshore company with low annual fees, low formation costs, rock solid secrecy provisions and the benefit of zero tax on income earned outside Panama. The country has a sophisticated international banking and communications system, with no need to file annual accounts or returns. Another Panamanian plus is that in spite of political problems, from time to time, the financial sector has always remained independent and has never been disrupted in any way.
http://www.iaehv.nl/users/grimaldo/p_places.html

As you can see, not only are there many advantages and disadvantages to different haven jurisdictions but when it comes down to it, only a few have enough strong features to be included in our programs.