... Business ... (IBCs)By William ... October ... ...
International Business Corporations (IBCs)
By William Cate
Published October 1999
[http://home.earthlink.net/~beowulfinvestments [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
Most American Multinational Corporations operate outside the States
as an IBC. If you call their export division, you'll find that you are
talking to someone in Zurich or Nassau. The reason is that using an IBC to
sell their products or services overseas saves the company on taxes.
Had the 19th Century founders of these icons of American Industry
foreseen the 20th Century Western tax revolution, Switzerland would have
been the home of American industry. Since WWII, Swiss Tax legislation makes Switzerland a poor choice for an IBC. But, if you follow my public company strategy, you need only worry about the next Decade, not the next hundred years.
Professional money trades through IBCs. New hot shot stock brokers
see that the money appears to be located in Geneva, St. Vincent, Douglas,
etc. They save their money for a trip to visit the IBC investors in Europe,
H. K, or the Caribbean. They may have a great vacation. They never find the
investors. To find those investors, they should have gone to Houston,
Miami, New York, London, Toronto and other cities where stock market
professionals live.
Public companies with a global market for their goods or services
are worth taking public. It's wiser to incorporate the global company in a
Caribbean tax haven than in Delaware, Nevada, or Ontario. Your tax haven
incorporation won't reduce your corporate taxes on income your company
earns in Canada, the United States or Germany. It will reduce your
international tax obligations. If you doubt me, review the audits of any
American multinational corporation trading on the New York Stock Exchange. You can find their audited financial statements at the U. S. Securities and Exchange Website.
Owning the insider stock of a public company through an IBC makes
sense, if you aren't part of the "Pump & Dump" crowd. If your tax haven IBC
holds the stock for several years, the tax consequences are no different
from your holding your stock without selling it. However, at the point of
eventual sale, if your plan is to live out your life in a tropical
paradise, you can legally save on your taxes. This statement is truer for
Canadians than Americans, but an IBC will save you tax dollars.
If you are going to trade stock for a living, you are better off
trading it through an IBC. Let me cite one example. Under Canadian
(Provincial) Securities Law, a Canadian resident can't receive the stock
dividends from an American spinoff. Canadian residents are paid two
Canadian cents (C$0.02) for each share of stock they would have gotten. Had
they lived anywhere else in the World, they would get stock worth dollars
per share. The stock is worth hundreds of times more than the Canadian cash
payment. Assorted laws in many jurisdictions ensure that professional stock
players trade through an IBC.
If you want an example of the widespread use of tax haven trading,
the VSE objected to the Standard Charter Bank (SCB) in Nassau several years
ago. The objection was that this British Bank seemed to be an inside trader
in many VSE stock scams. In fact, the SCB had no interest nor involvement
with the VSE. They did have VSE stock promoters as clients. These clients
traded VSE stock through the SCB.
Do you have a reason to form an IBC, now? If you want my help, I'll
be leaving November 1 for my biannual two-week IBC trip to the Caribbean. I
form IBCs for clients. I oversee the IBC process to ensure that the
paperwork is handled quickly and efficiently. This ensures that the process
in completed on time and on budget.
To contact the author: Visit the Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit the Global Village Investment Club Website:
[http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
Five Myths About Inflation
A classic definition of inflation is any increase in the money supply. Understanding inflation is vital to anyone seeking investment profits or attempting to build a successful company. As with most basic issues of the global economy, inflation is surrounded by myths and misinformation.
Recession Planning
The clouds of a 2006 Recession are starting to form on America's horizon.Politicians know that Recessions or Depressions are bad for their reelectionchanges. Bad economic times tend to create unemployment among the nice folksholding office at the time of economic stress. You can expect the Governmentto do everything possible to delay a Recession until after the November 2006election. However, the American economy is currently caught in an upwardmoving inflation and a Recession would still the fires of a runawaycurrency. The Real Estate Bubble may be about to burst. And, America'sfinancial institutions appear to be in increasing trouble over failedderivative bets.
African Aid
Africa, like everywhere else in the world, has its fair share of honest, intelligent; hardworking people who want to see their families have a better standard of living. Unfortunately, most of these people are living below the poverty line. The reasons that Africa, with all of its natural resources, is an economic basket case are complex. They start with the 16th Century Africans' failure to adopt an effective immigration policy. The result was the European immigrants divided up the continent without regard to historic tribal boundaries. The modern result has been tribal wars waged with modern weapons from the Sudan to Rwanda.
