Palladium Newsletter - September 2011

Dear Clients,

Welcome to our September newsletter.

This month, we focus on our Isle of Man set up, Company Succession Contracts, the use of Look Through Companies, especially as an alternative to Delaware LLCs.

Palladium is now proud to announce its own offering includes a proprietary Isle of Man licenced trust and fiduciary service company. This was spawned out of a need to have directors in the UK’s time zone for European, Russian and UK clients, something which is indispensably useful in rushed deals or where swift access of one’s directors is required. The Isle of Man is highly regarded internationally for all types of asset preservation, captive insurance, asset management, estate structuring and other ‘offshore’ services while the relative cost may be considered low in comparison with the Channel Islands. Meanwhile, we continue to offer BVI corporate and personal directorships which are still of the highest quality and for clients within that western time zone, still more desirable.

One service we offer for the owners of offshore (eg BVI) companies is the Company Succession Contract. This is a method by which one can avoid expensive, stressful and time consuming local law (eg BVI) probate on the death of shareholders. It is in effect a simple trust whereby the shares are passed in accordance with the wishes of the shareholder but without the concomitant cost and time outlay settlors often expend when setting up a family trust. Usually we advise using NZ trustees and law to for optimal effect. This is something for clients to be aware of – many just don’t care about what happens to their beneficiaries in the ‘thereafter’. But for those who do, we are here to assist and advise.

New Zealand Look Through Companies are increasingly being used as an alternative to US ‘offshore’ companies as Carl Levin and his various initiatives to destroy the US’ offshore industry bite. The Look Through Companies are transparent for tax purposes but remain valid entities for other purposes, for example limited liability. For this reason, the US which operates a worldwide basis of taxation may not recognise the tax transparency where it claims jurisdiction. Generally, however this represents an ideal combination. Moreover, as well as tending to reduce the overall tax liability, the Look Through Company makes tax compliance much easier for each shareholder.

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

EIS schemes to go ahead – after EU clearance:
http://www.telegraph.co.uk/finance/economics/8787898/Backers-of-small-firms-to-get-100m-tax-break.html

HMRC making wealthy tax dodgers pay six times more than two years ago:
http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/8758853/Rich-tax-dodgers-are-paying-back-six-times-more-than-two-years-ago.html

21st century update on privacy and security (excellent article):
http://investorsoffshore.com/html/specials/092011_privacy_and_security.html

EU-Singapore trade agreement in the offing:
http://www.tax-news.com/news/EUSingapore_Trade_Pact_In_The_Offing____51351.html

US to introduce new laws to make extinct US corporations for ‘offshore’ purposes:
http://www.kyc360.com/hot_topic/show/229?set=1

Ireland introduces a ‘poll tax’ for residential homes:
http://www.tax-news.com/news/Ireland_Introduces_New_Household_Tax____50659.html

Russia’s new transfer pricing law means a busy second half year for multi-national business there:
http://www.oecd.org/document/13/0,3746,en_21571361_44315115_47901837_1_1_1_1,00.html

Tax the biggest obstacle for UK’s small business owners?:
http://www.fpb.org/news/2443/Cost_of_red_tape_reaches__16_8_billion_despite_government_schemes__new_research_finds.htm

Largest divorce payout in British history – after 2 years of cohabitation:
http://www.telegraph.co.uk/news/uknews/8655998/220m-for-wife-who-lived-with-oligarch-for-just-two-years.html

Where dictators shelter their loot:
http://www.thedailybeast.com/articles/2011/08/26/muammar-gaddafi-hid-billions-of-dollars-but-no-one-can-find-it.html

60 days to disclose tax evasion in UK – or face the consequences:
http://www.ftadviser.com/FTAdviser/Regulation/TaxationAndTrusts/News/article/20110722/63d21546-b450-11e0-a73e-00144f2af8e8/HMRC-under-fire-for-fraud-disclosure-deadline.jsp

Increased dsiclosure requirements of US LLCs – and for US persons – so where to go now?:
http://preview.dixcart.com/article/IN238.htm

Positive news - UK Government to have greater powers to reclaim criminal assets overseas:
http://www.homeoffice.gov.uk/publications/crime/organised-crime-strategy?view=Binary

Mansion tax to replace top rate?:
http://www.citywire.co.uk/new-model-adviser/cable-calls-for-mansion-tax-to-replace-50p-rate/a513560?ref=new-model-adviser-latest-news-list

Changes to French tax laws to affect wealthy homeowners in south of France:
http://links.cecollect.com/311/8115/Tax%20Update%2001%20August.pdf

Tax gap of £42 billion just a ‘ploy’ to clamp down on tax evaders – and avoidance?:
http://www.thisismoney.co.uk/money/news/article-2023153/HMRCs-42bn-tax-gap-ploy-close-legal-schemes-say-critics.html

Indian tax evaders’ time will soon be up:
http://articles.economictimes.indiatimes.com/2011-08-27/news/29934851_1_income-tax-bank-accounts-black-money

Euro should not exist: UBS:
http://www.businessinsider.com/ubs-on-the-euro-breakup-2011-9