Obama, Offshore Tax Havens and the Impact on Non-Americans
(panamalaw.org) Introduction – USA President Elect Obama has been touting efforts to close 34 offshore tax havens. His latest list did not include the countries we work in, but did cover many havens in EU and the Caribbean. The subject here would be can he do this, what can he do and how will it affect the non-Americans that use offshore tax havens around the world for corporations, trusts, foundations, banking, IBC’s and stock brokerage service.
What Does Obama Want To Do? – He wants to shut all the offshore tax haven jurisdictions down. This would mean no more privacy with corporations, trusts, foundations, banking and stock brokerage. He would eliminate anything that gets in the way of full transparency. He wants to make the offshore banks collectors of taxes not just for the USA but for all the other high tax countries in need of more and more tax dollars to carry out their spending programs. Relax this is what he wants, only.
What Can Obama Do? - He can get with the other high tax countries in the G-20 and gang up on the tax haven countries. He can get some to cave in to varying extents. Most will stand up to him but probably make some concessions. The offshore havens will be diminished in size and scope. There will be fewer of them. They will stop taking more people from many different countries, Americans will fare the worst in this area. Most of the countries we work in have awful relationships with the USA and will ignore Obama and his gang with their demands.
The high tax G-20 countries can put further restrictions and disclosure requirements on offshore accounts and corporations. They can tax money going to and from them. They can require a form to be filled out and approved before any funds can be send there or received from there. One needs to move before these new laws and regulations get passed. This means very soon. Obama gets into office on Jan. 20th. His country is broke, full of homeless people and running very expensive wars. He needs money. The G-20 nations due to being in bed with USA to varying degrees are also in very bad shape and badly need money. Watch out.
Second Passports and Citizenships – These will soon come under attack as well. This allows a person to still be himself or herself with same picture, fingerprint and signature in their new identity but then again it is not himself. Get your second citizenship and passport before they outlaw dual nationality. Then you get grandfathered in and those that wait will have the door closed in their face, probably forever. As a citizen of another country you can escape the fishing expeditions that the countries will be conducting under the new transparency and openness policies Obama and the G-20 will be promoting. With the current worldwide financial crisis they are hungry for money so do not wait to see what happens, move first and fast,
What Can You Do - The key point here is speed. Do not wait for Obama to get into office and beat the drum for more and better tax collection and less privacy. The high tax countries will quickly accept him as a leader and get behind the charge against the tax havens. The thing to do is get your offshore structure in place before the various countries enact any new rules and regulations. Have your structure in place beforehand so it will be grandfathered in. Next move all the assets you are thinking about moving offshore, out now. Do not delay or wait to see what will happen next. Assume the worst and you will not be disappointed.
