Canada
Tells Scotia Bank: Don't Open Accounts for Canadians in your Offshore Branches
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US
Postal Service has been opening your mail since 1997 with
the
blessing of the US Government - Did you Know?
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Some of Our Readers Report:
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YOU’VE GOT MAIL – But
who else is reading it?
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We had reported some time ago that the US
Postal Service was opening mail if it was financially related and if it
had come from outside the US. I would like to say that this is just
the opinion of a conspiracy theory fanatic, but we did a small test a while
back, which proved otherwise. We started to notice that any mail
bound for a US address, which looked like it was coming from a bank, investment
company, etc. was routinely opened and then resealed in one of those plastic
bags the postal service uses. This of course under the premise that
the letter got caught in the sorting machine at the post office facility
and the nice people at the post office were resealing it for you.
However, it would seem that only financial related correspondence was constantly
getting caught in the sorting machine, while everything else was not.
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In conjunction with this, we also noticed
that almost every single piece of correspondence passing through the hands
of Fedex courier service were also being opened (coming from or going to
a location outside the US), with of course the formal US Customs Dept.
seal across the top. While every country has the right to screen
for contraband and dangerous materials, it seems very odd that a flat 8x11
envelope containing paper documents only should be opened. After
all, I would tend to think that the expensive x-ray equipment and drug
sniffing dogs would quickly determine if a package was suspicious or not,
but a flat envelope with paper documents?
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All this is mentioned because one of our
clients from Canada recently reported that a courier envelope containing
bank account application forms (from a bank outside of North America) was
opened by Canadian Customs. Not only was the envelope opened, but
also just a few short days later, the gentlemen received a call from Revenue
Canada indicating that he was being audited. Is this a simple coincidence?
Well, considering that the Canadian Customs Department and Revenue Canada
are now one and the same government agency, it would seem a little too
convenient or coincidental to me.
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CANADA: The New Police State?
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Very recently one of our readers reported
difficulty in obtaining some information from a bank in Belize (for the
purposes of getting an account opened). Here is what the gentlemen
found out, and wrote to us accordingly (the following paragraph is what
he reported to us in his own words exactly):
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Thank you for your response about Panama
Foundations. The opening of a bank account in an off shore location
is something that I have tried. I contacted the Scotia bank in Belize and
got no response. I then asked the local Manager of Scotia bank to contact
Belize. He did, and the letter he received from Belize stated that Revenue
Canada had told Scotia bank not to open accounts for Canadian citizens.
What do you make of that?
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What do I make of it? Well, This
is nothing more than a continuance in the old bag of tricks displayed previously.
How is it possible for a government agency to ORDER or DIRECT that a Canadian
Bank may not permit that accounts be opened at a branch office outside
of Canada - for Canadian citizens. How is this possible indeed, coming
from a so-called democratic government? What is the Canadian government
so afraid of? Are there more Canadians leaving the country than we
might be lead to believe? Why the strong-arm tactics?
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We have always advocated the idea of staying
away from branches or subsidiaries of banks or financial institutions from
your home country. For Canadians, this means Scotia Bank and quite
possibly US banks as well. For Americans, this means Citibank, First
Union and all the rest. In fact, I would say to a citizen of either
country, stay away from any bank that has a banking license in or is a
subsidiary of any North American bank. Why? Because even in
so-called tax-haven jurisdictions whereby banking privacy is the local
law, government agencies from the high tax governments have been known
to threaten the parent bank in their own jurisdiction (to release account
information about its citizens that may be banking in the offshore jurisdiction).
The flip side of the argument is that many clients know a particular bank
name or feel comfortable with the bank’s size and international presence.
However, at what price do you pay for banking with such an institution?
Possibly your confidentiality to start off with.
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In The News:
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TORPEDOING GLOBAL TAX NANNIES – Forbes
Magazine Editorial
June 2001 – By Steve Forbes
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Another constructive move by our Treasury
Chief has been to kibosh an initiative of high-tax countries to force low-tax
countries to raise their levies. The Paris-based, 30-member Organization
for Economic Cooperation & Development (OECD), known to nonmembers
as the rich man's Club, wants to impose sanctions on "money-laundering
tax havens." Its real purpose: to wage war against low-tax entities. Or
as OECD bureaucrats put it, "to eliminate harmful tax practices." The Bush
Administration rightly saw the OECD move as an attempt to become the world's
tax policeman and to force high-tax regimens on sovereign states.
Naturally, France was the prime mover. It and other tax-happy welfare nations
in Europe have long cast a jaundiced eye on those who don't squeeze their
citizens' pocketbooks sufficiently. Look at the European Union's constant
berating of Ireland for its policies of cutting taxes.
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O'Neill made clear the U.S. would vigorously
pursue genuine tax cheats and fight criminal money-laundering efforts.
But he rightly saw the distinction between those laudable goals and the
less-than-laudable efforts to force low-tax countries to impose more exactions
on their citizens.
Editor’s Note: Mr. Steven Forbes, my friend,
by god you got it right. However, Treasury Chief O’Neill still says
he will continue to more or less harass US citizens where ever they may
be (or at least have this as a policy), so the war is not over quite yet.
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http://www.forbes.com/global/2001/0611/015_2.html
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Beating the Tax-Man Offshore: Many Americans
Hiding Their Money in Offshore Tax Havens - By Brian Ross, ABC News.
April 2000
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The island country of Nauru, in the middle
of the Pacific, is a place where Americans have found an ingenious new
way to beat the IRS, according to the government.
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Rep. Tauzin Caught on Tape at Seminar
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In the middle of the investigation of
Schneider, IRS investigators were stunned to find a prominent congressman,
Rep. Billy Tauzin, R-La., speaking at one of Schneider's seminars in Canada.
Tauzin says he went as part of his campaign to eliminate the income tax
altogether, not to endorse Schneider's schemes. "Our purpose was
simply to go out and encourage people to repeal the income tax code," said
Tauzin. "And that's the only purpose." When asked if he regrets
going, Tauzin answered, "Knowing what I know, yeah, of course."
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Tauzin's staff also provided Schneider
with a quote from the congressman, praising Schneider's most recent book
on offshore banking. Tauzin said he regrets that, as well, and has
demanded Schneider stop using it. Didn't read the book," said Tauzin.
"Not interested in reading it." He may not be the only one to be
put in a bad spot by Schneider. In a raid on Schneider's office last
month, the IRS seized the names of thousands of his clients who signed
up in the Nauru bank scheme and may soon find themselves under investigation.
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Editor’s Note: I of course know of Jerome
Schneider, but do not know him personally. While some of his information
may be interesting and worthwhile, I do not agree with the idea of selling
average people Class B banking licenses from a Polynesian Island.
These banking licenses are not what people think they are (most people
do not understand the difference between a Class A and Class B license),
and they are expensive for the average person (US$ 35,000 or more).
In addition, owning such a license will not solve a tax problem.
The IRS or Revenue Canada will most assuredly harass you regardless of
what the tax code says, or what the law says about unreasonable search
and seizure. In addition, you may find it very difficult getting
a correspondent banking relationship in the US or Europe, which is what
you ultimately, would want (cars need gasoline to run and banks need correspondent
relationships to move money in different currencies). Plus, think
hard about doing business with someone maintaining a US based office.
Kind of like leaving the chicken coop door open in front of the hungry
fox.
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http://abcnews.go.com/sections/wnt/WorldNewsTonight/wnt010412_taxhavens_feature.html
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The Jingoism of World Powers
– International Herald Tribune
Thursday, June 21, 2001
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Regarding "Love It or Hate It, but the
World Needs America" (Opinion, June 16) by Thomas L. Friedman:
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I could not help but be amused by this
article. It smacks of the same jingoism that has beset every empire at
the peak of its power, only to come back to haunt the former empire after
the inevitable decline comes. Decline comes because populations and societies
mature and age just like people. It's only a matter of time.
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As an African I've been amused to see
the turn in European-American smugness directed at the rest of the world
turn into a bitter rivalry about who gets to be top dog. Living in
Britain, I have noticed the bitterness over loss of empire. I have seen
the once mighty English humbled into an apathetic and dour people on the
one hand, and a happy liberal minority on the other capable of seeing that
it's better to get along with people than to try to dominate them. The
English used to love being despised. It was the ultimate confirmation of
their superiority. It's all history now.
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This is exactly how modern Americans love
being hated. It makes them feel special because they have had such a long-running
inferiority complex toward Europeans. It is the ultimate in "the underdog
comes back to quash his foes." This is what all this global power play
boils down to. Juvenile national ego-games. It is ridiculous.
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http://www.iht.com/articles/23446.htm
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Comments from a Political Leader in Malaysia:
(see on-line news link below)
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They do not wish to change a particular
Government for a fairer and more democratic one (United States and World
Bank member countries in general). They only wish to see destruction,
which befell other countries to happen to our country. They wish us to
become their client state. It is not that they love the opposition and
wish to see them taking over the Malaysian Government. They only use the
opposition as a tool to achieve their evil intentions."
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He claimed the West hated his government
because it had fought globalization and refused intervention by the IMF
and the World Bank after the 1997 Asian economic crisis. "They hate
Malaysia, especially the current leadership and they hate it extremely.
They especially hate it because Malaysia was able to defend the economic
and financial attack they launched," he said.
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http://www.smh.com.au/news/0106/22/world/world2.html
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Editor’s Note: The list of ticked-off
political leaders from small countries is growing. In other words,
not everyone is taking the bait that the WTO, the OECD and whatever group
of alphabet letters has everyone’s best interest at heart. Many feel
these political organizations should NOT be in a position to dictate or
act as a forum for something other than trade alone. So, if you are
looking to get away from the heavy hand of such policies - why not change
your Bermuda Shorts for a Malaysian Sarong? They say Malaysia is
nice this time of year.
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For additional information setting
up an offshore company for your business, offshore banking, or for questions
regarding residency – second citizenship matters, please contact Ascot
Advisory Services: Email:
info@ascotadvisory.com
Tel. 809-334-5387 or
809-756-1917
http://www.ascotadvisory.com/
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John Schroder has presented this information
as a service to clients and readers, and is solely responsible for its
content.
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