Palladium Newsletter - February 2010

Dear Clients,

Welcome to our second newsletter.

We hope that you find it an ever useful way of in keeping up to date with our services and matters 'Offshore'.

Last month has brought more surprises in the offshore world, especially as regards the desperation of European governments and the IRS to feed their addiction for tax revenues. Further, many individuals in those countries who are (still!) wealthy intend to leave those countries for the likes of Switzerland, UAE and Singapore: for a more rounded lifestyle, certainty of taxation as well as to enjoy lower taxes.

The German government may incarcerate those who steal under domestic law but on the international stage the country feels at rights to receive stolen goods - and publicly - as illustrated by Germany's intention to purchase a stolen list of clients from HSBC Geneva. Further, Belgium and Austria may follow suit. Worse still, it is now publicly known that the UK taxman is invoking reserved anti-terrorism powers in order to snoop on several thousand citizens for tax offences.

Meanwhile the Laerstate case has highlighted the punitive way HMRC in the UK now defines 'management and control' of non-UK companies - and underscores the need to use professional 'offshore' directors who fully consider their companies business - and not just appoint nominees.

On this front, we are continually developing our practice of providing quality professional directors for BVI and other offshore vehicles. We provide both personal and corporate directorships at a reasonable cost but such that the company concerned is being legitimately and successfully managed as a going concern and not as a stooge for onshore beneficiaries.

UK - residence and central management and control of companies - the latest update from the courts:

http://www.martindale.com/legal-management/article_Withers-Bergman-LLP-Withers-LLP_859160.htm

This is now live - viel Spaß dabei!

www.palladiumtrustservices.net/de/

We now offer New Zealand Family Limited Partnerships and Trusts exclusively for clients resident in the ever-growing Brazil.

New Zealand's particular advantage for Brazilians is that is does not appear on Brazil's list of 34 jurisdictions with harmful tax practices (introduced by Law No. 9.430, of December 27, 1996) and with which Brazilians may only deal after inducing heavy taxes on themselves.

Moreover, New Zealand is highly respected by Brazil as a corruption-free (the world's least corrupt country, according to Transparency International) and progressive modern economy. We aim to serve some of the staggering private wealth there by providing ethical, tax-efficient solutions which concurrently offer them much needed confidentiality and security.

Goldman Sachs is on this curve also:

http://www2.goldmansachs.com/our-firm/press/press-releases/archived/2009/pwm-brazil-launch.html

Palladium articles of FLPs and Trusts: (in Brazilian Portuguese)

NZ Trusts for Latin American Families (Portuguese).pdf

NZ Family Limited Partnerships (Portuguese).pdf

BVI Business Companies' popularity continues unabated and we now have a list of shelf companies available. This solution guarantees our clients both that companies they require may be used in 'same day completions' or also simply that unnecessary delays in company incorporations in the BVI do not occur.

Current List:



PSTs offer BVI company shareholders the peace of mind as regards the succession planning of those shares. Under normal circumstances, when the shareholder of a BVI company dies, BVI probate is invoked and this is often a costly and timely process, not to mention the issues which arise where said probate is contested.

Using a PST is cost effective and passes ownership of those shares whilst obviating the need for BVI probate. E-literature on the PST is available for you on request.


Finally thanks to you all for your support of Palladium and we look forward to working with you in the future.

Stephen


German Government to purchase stolen tax data from HSBC, Geneva?
http://www.theaustralian.com.au/business/news/germany-to-track-hidden-money-in-swiss-banks-in-tax-evasion-crackdown/story-e6frg90x-1225825817975

UK: taxman has been granted special snooping powers, getting tough on evasion.
http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/6974381/Tax-inspectors-granted-permission-to-spy-on-potential-tax-evaders-15-times-a-day.html

UK facing mass exodus of wealthy.
http://www.ft.com/cms/s/2/1fef9a38-0ffb-11df-b278-00144feab49a.html'

Ireland: the forum for UCITS and regulated fund alternatives?
http://www.dilloneustace.ie/download/1/UCITS%20Alternatives.pdf

Global: Hedge fund assets increase in December 2009
http://www.eubankers.net/page.Article.cmc?&A=January&B=1263961843&C=2010&SID=1

US and Switzerland: the battle rages on re UBS account-holders
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a6cvtZ3o6Lco