Palladium Newsletter - October 2011

Dear Clients,

Welcome to our October newsletter.

Earlier this month, Palladium held a presentation at the Mayfair hotel in London on the benefits and uses of the British Virgin Islands, New Zealand, and Brazil as wealth management and preservation jurisdictions. We would like to thank all of our guests, who came from accross a range of excellent law firms, accountancy firms, private wealth managers, financial advisers and private banks for helping to make the night a success. It was a pleasure to see you all and we hope that you enjoyed the networking opportunity. We shall hold a similar but more specialised event in the near future; if you are interested in coming along please do email Natasha (natasha@palladiumtrustservices.net) to register your interest.

This month we try to stay out of the way of the Occupy Wall Street movement which is quickly spreading around the globe, and more locally, near the London Stock Exchange. These issues underline how important it is to plan ahead and structure asset holdings carefully given the turbulent financial situation with which we all must deal.

Our focus this month is on the advantages of Panamanian Foundations. Panama has a liberal and open legal system that has provided a reliable jurisdiction for the formation of companies to be used in international commerce for nearly a hundred years. The issues of the Noriega years are a distant memory which now can never be repeated due to constitutional changes and a vastly different political and economic landscape in the country and Latin America as a whole. Panama is now a predominantly ‘upper-middle class’ country boasting low unemployment (7%), double digit economic growth and a solid, stable and well regarded banking system.

Since 1995, Panama has provided the legislatory framework for Private Interest Foundations (PIFs) which are based on the successful Liechtenstein foundation model. Panama’s legislation provides a modern, flexible and cost efficient framework to its users. PIFs act as a convenient and effective vehicle for estate or property planning and protection. PIFs require capitalisation of $10,000 as a minimum though this must not be paid up.

Under Panamanian law, a PIF is recognized as a legal entity with its own name, separate legal identity and governing bodies, and may be established, founded or settled by one or more natural or legal persons on their own or through third parties (the “Founder”). Any Founder may execute an assignment of rights to any beneficiary by private contract, and the Founder or any nominated natural or legal person may be designated a protector of the PIF. PIFs are governed by applicable laws in Panama, primarily by the terms of the foundation charter, and secondarily by regulations which are enshrined in the PIF’s constitution.

PIFs are exempt from Panamanian taxes of any kind from non-Panamanian sourced income – for example rental properties. Even profits created from securities owned by a PIF but with a non-Panamanian Founder deposited in banks in Panama are exempt from Panamanian taxes. PIFs are also useful for clients whose estates are subject to ‘forced heirship’ inheritance laws since inheritance laws which apply in the domicile of the Founder (or the beneficiaries) shall not be enforecable against a PIF’s assets in Panama nor shall these laws affect the validity or performance of the PIF’s objectives in Panama. Panama also uses United States dollars as a base currency.

Using Palladium as your service provider will ensure a secure and swift set up for your or your clients’ PIFs and we will provide you with responsive, professional bilingual services in London and Panama City.

Please visit us at www.palladiumtrustservices.net or contact me directly at stephen@palladiumtrustservices.net if you would like more information on what Palladium can do for you and help you plan for what may lie ahead.

We hope you enjoy the articles below and find them an interesting resource.

Until next month,

Stephen

Emerging markets the wiser choice?:
http://investorsoffshore.com/html/specials/102011_emerging_market.html

Monaco laws now make its trust companies and CSPs file accounts:
http://www.rosemont-int.com/news/28-09-2011-monaco-to-remove-bearer-shares-and-impose-accounting-obligations-on-scis

How to squeeze info out of HMRC – DPA 1998:
http://www.accountingweb.co.uk/article/use-subject-action-requests-get-info-hmrc/519307

UK has lowest corporation tax in developed world?:
http://www.uhy-uk.com/resources/news/uk-has-one-of-the-lowest-corporate-tax-burdens-among-the-g8/

Thailand the most favoured expat location right now:
http://www.investorsoffshore.com/asp/story/Thailand_Ranked_Top_Expat_Destination____51835.html

Bank of India opens its doors in NZ:
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10756962

London retaining global wealth crown:
http://www.reuters.com/article/2011/10/04/us-wealth-summit-coutts-idUSTRE7935AS20111004

Swiss-UK tax deal includes ‘additional’ and unpublicised power to discover any UK resident with a Swiss account:
http://www.hm-treasury.gov.uk/press_98_11.htm

Appeal won to claim non-Australian residence:
http://moorestephensresources.com.au/articles/574/1/Australian-Tax-Residence--Under-the-Spotlight-Again/Page1.html

US insider trading being punished properly:
http://www.bloomberg.com/news/2011-08-31/ex-galleon-fund-trader-drimal-gets-five-year-sentence-for-insider-trading.html

Phillipines to increase HNWIs – but not many for a country of its population:
http://www.abs-cbnnews.com/business/08/31/11/philippines-have-38000-millionaires-2015-swiss-banking-group

Isle of Man to boost its financial services industry:
http://www.moneymarketing.co.uk/regulation/isle-of-man-in-radical-shake-up-of-financial-services/1037068.article

Asian millionaires to triple in 4 years?:
http://www.vrl-financial-news.com/bpa/banking--payments-asia/issues/bpa-2011/bpa-28/julius-baer-asianmaires%E2%80%99-weal.aspx

Swiss private bank in bribery scandal:
http://www.thenational.ae/thenationalconversation/industry-insights/finance/swiss-bank-sued-over-bribery-claims

Family Office market now worth $1 trillion:
http://www.lifeandhealthinsurancenews.com/News/2011/9/Pages/Cerulli-Report-Pegs-Family-Office-Channel-at-Nearly-1-Trillion.aspx