Bank Privacy Warning!

by | Nov 29, 2001 | Archives

Bank privacy is dead.

Many previous messages including:

have warned about the erosion of bank privacy.The message below passed on by tax attorney and eClub advisor Leslie Share shows that these warnings must not be taken lightly!

	Caymans to Share Tax Information		November 27, 2001		By THE ASSOCIATED PRESS		Filed at 11:24 a.m. ET		WASHINGTON (AP) -- The Cayman Islands, long considered a Caribbean 	haven for tax evaders, signed an agreement Tuesday with the Bush 	administration to share tax information that would help the United 	States track down violators.		Treasury Secretary Paul O'Neill formalized the pact Tuesday with 	Christopher Meyer, the British ambassador to the United States, and 	Cayman Islands Gov. Peter J. Smith. O'Neill called the agreement a 	"signal event" in curbing tax avoidance.		"It is my sincere hope that, with the signing of this agreement, the 	Cayman Islands will be recognized as a leading financial center that is 	committed to upholding international standards," O'Neill said.		The accord will enable the Internal Revenue Service to	pierce the secrecy of accounts at Cayman Islands financial 	institutions, paving the way for audits that could uncover tax evasion, 	drug money-laundering and other misdeeds, said former IRS Commissioner 	Donald Alexander.		"Right now, nothing is a fair description of the	cooperation the United States is getting," said Alexander, now with 	the law firm Akin, Gump, Strauss, Hauer & Feld. "It's a hotbed of tax 	evasion. This is a good step in the right direction."		Smith, the Cayman Islands governor, said the tropical	British possession seeks to be viewed throughout the world	as a financial center that will "embrace sound regulation	and keep pace with international standards ... We have made	a clear choice to be leaders."		Senate hearings earlier this year disclosed that the United States 	loses an estimated $70 billion in tax revenue each year because assets 	are concealed in offshore tax havens. Although many like the Cayman 	Islands have little or no direct taxation, their bank secrecy laws are 	more important to individuals and businesses seeking to evade taxes in	their home countries.		Manhattan District Attorney Robert Morgenthau told senators that about 	$800 billion is on deposit at some 600 banks licensed in the Cayman 	Islands -- more than twice the amount deposited in all New York City 	banks combined.		The money is there, Morgenthau said, "because those who	put it there want a free ride ... some of this avoidance is legal, but 	much of it is not."		Led by O'Neill, the Bush administration has shifted the	U.S. focus in dealing with tax haven countries away from an 	international effort to overhaul tax structures and toward negotiated 	treaties that allow easier U.S. pursuit of suspected cheaters.		O'Neill pledged in July that within a year, the	administration would complete negotiations on such treaties with half 	of the 35 countries listed as tax havens by the Paris-based 	Organization for Economic Cooperation and Development. The Cayman 	Islands was one of several jurisdictions that pledged greater openness 	last year to avoid being included on the OECD list.		Others on that list include Antigua and Barbuda, the	British Virgin Islands, Barbados and Panama.

Leslie Share also shared the fact that there is more information at thesights below:

Treasury Department:


NY Times Link

The best way to maintain control of your wealth today is through a genuineinternational business. This is why I am focusing on this subject at our next three courses in Ecuador January 25-27 2002 and February 22-24 and March 22-24.

Until next message, good global business and investing!