Posts Tagged ‘Bank Secrecy’
The Rise of new Economic Migrants from Canada
Netherlands Antilles a Tax Haven?
The irony. Canada was the country of choice. Remember the flight of economic migrants to Canada and other countries during the fearful days of China’s takeover of Hong Kong? Their capital influx was very much welcomed to prop up a less than stellar economy. But the tide had been changing for some time – has this been biting the Canadian economy? Perhaps. But then, I’d take some of their cash rather than none at all. If government policy is seen cracking down on overseas investments, then it’s just not too hard to see large chunks of cash fleeing and never to return.
Minister for Internal Revenue Jean-Pierre Blackburn said, “The amount Canadians have invested in countries that could potentially be used as tax havens amounted to C$146 billion in 2009, up from C$88 billion in 2003.” Is this another G20 Bank Secrecy bashing or fishing expedition?
And in the same breath adds a qualifier that “Safeguarding cash in those places is not illegal but makes it easier to avoid declaring income for tax purposes.” Yes, it’s not illegal. It wasn’t illegal then, why is it supposed to be now? It was quite clear that investing overseas is very much a welcomed activity especially when the home market tanks and investors get screwed out of their hard earned savings. I wonder if protectionism is rearing it’s ugly head. Canada should be very careful not to create a Bank Secrecy backlash they cannot recover from on the world stage.
Lately, UBS, Swiss Banks, Leichstenstein, Cayman Islands has been mentioned and the Netherlands Antilles is the only jurisdiction which has a tax treaty with Canada. I wonder why it has taken so long?
Let’s face it. North America is far from the ideal investment continent with tiny or negative growth prospects. While other developing countries offer far greater returns prospects. As an added bonus, these jurisdictions also offer very low taxation – like Hong Kong. Large financial centers can have capital that moves very quickly and efficiently. And protectionism can be in the way of services, not just goods…cash is a commodity and banking is a service.
I’d much rather see a more comprehensive reduction in financial burdens on the population and much better stimulation of the economy than having to go after so called tax cheats. The returns thus far of C$25Million seem hardly worthwhile considering the amount of time and effort required to procure that money. Well, come to think of it, governments spend far more for negative returns…so this might not be too bad of a venture after all. But Minister, do you ever consider the negative impact this might have on how Canada might be viewed on the world stage? Afterall, the past economic boom has been also in large part involving the immigration influx. It affects real estate, it affects the banking sector, it affects world trade, it affects world relations. I sincerely hope that is not being affected negatively, all for the sake of the arbitrary “G20 rules”.
Just imagine, Canada goes crazy and starts to be seen to be clamping down on hard earned savings…and if the savings are large…is it too hard to imagine a new class of Economic Immigrants? Put another way. People will likely flock to their destination of choice. After all, a large retiring population seeking a modern country with great medical resources, and endless business opportunities might just be the ticket out of a cold and tax unfriendly country. I’d hate to see “snow-birds” become permanent migrants to a warm and friendly place.
Technorati Tags: Bank Secrecy, banking sector, Capital, Economic Migrants
Tags: Bank Secrecy, banking sector, Capital, Economic Migrants
Posted in Bank Secrecy Backlash | 1 Comment »
As a super financial centre, Singapore is set to defend it’s Bank Secrecy.
Singapore is firing its salvo of response, setting its position to any near future foreign pressure, possibly in response to the French Foreign Ministers, claim that after the European Countries have been forced to clean up their act, the Far Eastern ones will be next; and also in response to Obama’s new forceful stance and proposed legislation against banking secrecy.
At least for now, domestic law still prevents the government from providing any foreign depositors’ information; which will soon end with new legislation. This, because of intense pressure from the OECD and the recent G20 summit gray list.
[But even after such legislation, Singapore will be willing to investigate income that isn't taxed locally only if there are documented suspicions of tax evasion and proof the foreign authority requesting the information can't get it directly from the foreign investor or deposit-holder.
The authorities "will negotiate long and hard" with each country individually, said a person familiar with government thinking. "Singapore won't scare away its affluent foreigners." ] Excerpt from the Asian Wall Street Journal.
The government “will be selective about whom it negotiates with and it will in no way give the impression that bank secrecy here will be compromised.”
It is clear Singapore, lately voted as the 3rd best financial centre in the world, intends to maintain its Asian Switzerland of the East status.
Technorati Tags: Bank Secrecy
Tags: Bank Secrecy
Posted in Bank Secrecy, Headline, Private Banking | 1 Comment »
Have you ever wondered about the mysteries surrounding Europe’s best keepers of private financial affairs? Yes, I do mean the Swiss Bank Secrets.
What if I told you that the Swiss Banks have about 2.5 trillion dollars in foreign assets under management? A stunning figure placed under “secrecy” isn’t it?
They are in fact very much an open secret or perhaps shall we call it “bank client confidentiality”? But what is it about the Swiss Banks that make them so impenetrable? Very simply, it’s their countries’ laws which are very closely tied to the modus operandi of their banking and bankers’ rules of operation. You may find out more about it here at the Swiss Bankers Association.
The following 6 items are some of the main reasons why Swiss Banks are a formidable challenge to penetrate:
1) Swiss bankers are under obligation to keep any information about you or your account strictly confidential.
2) This bank secrecy is among the strictest in the world and stems from an age-old historical tradition. It is established in Swiss law.
3) Any banker who reveals information about you without your consent risks several months in prison. The only exceptions to this rule concern serious crimes such as gun smuggling and drug trafficking.
4) Bank secrecy is not lifted for tax evasion. This is because failure to report income or assets is not considered a crime in Switzerland.
5) Neither the Swiss government, nor any other government, can obtain information about your bank account. They must first convince a Swiss judge that you have committed a serious crime punishable by the Swiss Penal Code.
6) Bank secrecy will not be lifted for private matters such as inheritance or divorce if you have kept your banking information strictly confidential. It is up to plaintiffs to prove that the account exists if they wish the judge to pursue the case. In this respect, the numbered account provides the maximum degree of confidentiality.
The above were taken from a shortlist of Swiss banking info from this site here.
They are obviously very careful on behalf of their clients. Just make contact with a Swiss Bank and you’ll find out for yourself.
Many people have that incredible fear that if things are made so secretive, they cannot possibly be legal. That, is certainly false perception. Of course many government agencies and banks within your own country will try to allude to that illegality. But, truth be told, they are perfectly legal. You can find out more about it from the Swiss Private Banking agents here. You’ll find that they will happily talk to you and suggest a minimum initial deposit of US$300,000 to start.
Of course, with all these extreme treatment of the law and care for their clients, a specialty banking school catered strictly for Swiss Banking was developed many years ago. At the very least, one can feel secure in the training these special breed of bankers get.
So, putting it all together, the entire country is really geared towards protecting assets and private banking with banking secrecy as the main industry.
Technorati Tags: Bank Secrecy, swiss banks
Tags: Bank Secrecy, swiss banks
Posted in Bank Secrecy, Personal Bank, Private Banking | 1 Comment »
