Offshore News Digest for Week of April 29, 2002

U.S. COMPANIES RACE TO GO OFFSHORE

Threatened by possible federal legislation, American companies race to save taxes by re-incorporating offshore.

WEALTHY LEAVING AMERICA

WASHINGTON. Taxes and other restrictions on wealthy Americans are driving them offshore -- and could wreck the US economy.

For the official IRS lists of expatriating Americans:

SWISS SECRECY CONFUSION

ZURICH. Amid rumors Swiss politicians may sell out the nation's strict banking secrecy, the government denies it. Then a top banking regulator says secrecy may have to yield. Who's in charge?

SWISS BORDER BANKERS BUMMED

LUGANO. The Italian tax amnesty has Swiss border town bankers nervous as cash flows south by the billions of euros.

U.K. SAYS GIBRALTAR VOTE WILL BE HONORED

LONDON. UK Labour government says it will assure that Spain will honor any referendum result on Gibraltar sovereignty. Oh yeah?

LABOUR THREATS CAUSE JERSEY CRISIS

ST HELIER. British Labour's threat to penalize JERSEY unless it follows EU tax orders causes a crisis in this Crown dependency.

And these same threats cause Barclays Bank to locate its new private client banking on the ISLE of MAN, rather than Jersey.

NEW REPORT UPHOLDS FINANCIAL PRIVACY

WASHINGTON. Task Force on Information Exchange & Financial Privacy recommends balancing financial privacy and national security.

For the full report in pdf format:

Richard Rahn asks, "Do You Need Financial Privacy?"

I.R.S. MAJOR VIOLATOR OF FINANCIAL PRIVACY

Dan Mitchell calls for reforms to end IRS and US tax code violations of Americans' financial privacy.

'NATIONAL SECURITY' SNOOPS

US government subpoenas flood telecom industry demanding personal information about Americans and their financial records.

USA PATRIOT ACT HURTS SMALL BUSINESS

New law imposes costly, unnecessary rules on small businesses.

AMERICANS BACK CIVIL LIBERTIES

Concerned about terrorists, Americans don't want to surrender their liberty in exchange for security.

THE WAR AGAINST OUR FREEDOMS

Will the US government succeed where terrorists have failed?

LIBERTY CHANGES THE WORLD

David Boaz new book 'Toward Liberty: The Idea That is Changing the World' is highly recommended.

U.S. AIMS AT UNREPORTED OFFSHORE ACCOUNTS

The US Treasury and IRS are stepping up enforcement of the law requiring reporting of all US persons' offshore financial accounts.

BAHAMAS ELECTION WONT CURE ILLS

NASSAU. Thursday's election will produce a new prime minister, but it wont change the destruction of the islands' offshore financial role.

GRENADA OFFSHORE BANK CLEAN UP

ST. GEORGE'S. 1 more bank closed, 4 under investigation, added to 32 shut down since 2001. Only 13 banks remain.

SWISS POLL SHOWS BANK SECRECY SLIPPING

A new poll says 53% of Swiss says bank secrecy should be eased, 55% say tax evasion should be a crime.

JERSEY CHIEF FIRES BACK

Answers UK critics who claim anti-EU tax attitude is childish.

ROCK RESIDENTS FIGHT FOR IDENTITY

The people of GIBRALTAR fight for their own way of life and have been resolutely British since the early 18th century.

GOVERNMENT EYES U.S. BANK FOREIGN OWNERSHIP

Federal banking agencies have serious concerns about cross ownership between foreign and US banks as a risk to the financial system.

LITIGATION OUT OF CONTROL

A major reason to move assets offshore, the explosion of lawsuits in the United States, including massive class action law suits.

SAME OLD OFFSHORE SCAMS

13,000 investors swindled out of US$60m (£41m) in Internet fraud.

Nigerian Internet e-mail fraud rolls on.

U.K. LABOUR TAX THREATENS FOREIGN FIRMS

LONDON. Growing alarm over plans for the taxation of UK branches of overseas companies; mass exodus from UK predicted.

O.E.C.D ILLEGAL COERCION OF OFFSHORE HAVENS

The Boston College International & Comparative Law Review says the OECD has no legal basis for its blacklisting of tax havens.

VANUATU CHARGES O.E.C.D. IS WRECKER

A leading islander says the OECD is trying to destroy small tax havens.

BAHAMAS PARLIAMENTARY ELECTION

NASSAU. Leadership and jobs were the issues; the offshore financial community sees more hard times ahead.

BERMUDA WILL SURVIVE

HAMILTON. So says one of its financial leaders.

F.B.I. STING USES DOMINICA BANK LURE

MIAMI. Money laundering entrapment grabs a Latin businessman.

E.U. HIGH COURT UPHOLDS GIBRALTAR OFFSHORE COMPANIES

EU Court of Justice rules The Rock's tax exempt companies are not unfair state aids to business; a victory for the embattled tax haven as rumors swirl about its doubtful future as a British colony.

MALTA A MEDITERRANEAN SWITZERLAND?

VALETTA. EU membership opponents want the island to become an international financial haven like Switzerland.

NETHERLANDS MOVING RIGHT?

Conservative parties ready to move up in the coming election.

MITCHELL EXPOSES PROTECTIONISM

WASHINGTON. Dan Mitchell of the Heritage Foundation exposes the fallacies of proposals to curb offshore re-incorporation by US companies seeking to avoid high US taxes.

DOLLAR DIPS AGAINST EURO

Thursday the dollar was down & the euro up.

U.S TREASURY SECRETARY'S DOLLAR RIDDLES

Pressure on the dollar produces muddled Washington statements.

U.K. LABOUR RETURNS TO SOCIALIST ROOTS

LONDON. Tax and spend is once again Labour Party policy.

And UK taxing of offshore funds is under discussion.

BRIT E.U. TAX PLAN ALTERNATIVE CAUSES U.K. PROBLEMS

Britain's proposed replacement for the EU withholding tax is causing more problems than the rejected original.

BRIT EXPATS MUST BE CAREFUL

Get the straight tax facts before you decide to go.