IS LEGAL FINANCIAL PRIVACY STILL POSSIBLE?
This “Gem” is Grandpa’s comments (in red) on the Daily Bell article below
Without Fanfare, Financial Privacy Was Wiped Out Last Week in DC
By Daily Bell Staf April 18, 2016 //www.thedailybell.com/news-analysis/without-fanfare-financial-privacy-was-wiped-out-last-week-in-dc/
Britain and its European allies have announced new rules designed to be a “hammer blow” against tax evasion in direct response to the Panama Papers leak that exposed how the world’s richest and most powerful people hide their wealth from tax authorities. Guardian
Never in the history of humankind has it been impossible to create an anonymous legal entity.
[Not true, if a legal entity had any taxable income attributable to an individual, it had to be reported or was necessary for the corporation or trust to report it to tax authorities. In most countries, it was a civil offense to not report, but the USA and some other countries hiding income or income-producing assets were criminalized. In some countries, but NOT the USA, there are taxes on all assets (a wealth tax) which makes reporting assets a legal requirement. In the USA it is not yet necessary to report all the assets you own. Thus, “cash under the mattress” remains unreportable.}
But now it will be. And this doesn’t seem to be a momentous event to the world’s mainstream media which is reporting on the story as if it has to do with tax evasion.
[As far as governments are concerned, although they may hand out public relations material about the suppression of contraband arms, drugs or terrorist activities, the full disclosure of owned or controlled legal entities is 99.99% about more effective tax collection. Poorer folk who are the vast majority, generally don’t want to allow some individuals to escape paying their “fair share” of taxes. The wealthier classes prefer to keep their assets and employ them as they see fit.]
The larger issue is that a handful of elected and unelected bureaucrats have decided that YOU – a person, a businessman, an investor – have no right to set up a corporation without publicly affixing your name to it.
[Man made laws allowed the creation of corporations and man-made laws and regulations have always specified exactly how they may be used. The laws and rules differ in each jurisdiction whether it be a state, province or country. ]
And just in case you have second thoughts about that, “tax havens” around the world will be pressured to cooperate with “Britain and its allies” who intend to deal a “hammerblow” to tax evasion.
[Tax avoidance, tax evasion and low tax or no tax havens have always existed even in the days of ancient Greece. In Grandpa’s opinion, they always will exist, although once revealed or exposed to the general public, there will be pressure to “shut down the loopholes.” However, these loopholes sometimes legal, sometimes gray area will always exist. Tax lawyers and other who have studied the matter will keep these under wraps like the law firm in Panama did until an employee ratted them out for reasons as yet unknown to the general public.]
The US must be seen as part of this allied charge as the “U.S. Treasury is Finalizing Rule to Combat Tax Evasion,” according to the Lawyer Herald.
U.S. Treasury Secretary announced support on restraining tax evasion during his speech in the International Monetary and Financial Committee (IMFC) press conference at the IMF headquarters on Saturday. Secretary Lew said that the U.S. has planned a rule to combat shell companies.
… Lew also call all countries to exchange financial account information automatically in the wake of Panama Papers leak.
[But all countries won’t necessarily follow the lead of the G20, EU or USA if they can gain revenue and productive new citizens by making their own rules favorable to wealthy interests. Liechtenstein, Delaware, Nevada, Monaco, Bermuda, Bahamas, Uruguay and Panama are just a few of the jurisdictions that try to find & satisfy the needs of prospective clientresidents. It may be necessary for individuals to take both themselves and their assets out of their present jurisdiction to preserve their freedom, privacy and wealth. That is what the book Bye Bye Big Brother is all about.]
Lew’s statement corresponds to intentions voiced by Europe and Britain – and also by the Group of 20. The G20 issued a release calling on countries around the world and especially tax havens to voluntarily release information on corporate beneficial owners.
Previously, International Monetary Fund and World Bank officials had issued similar statements.
As well, the IMF seemed to indicate that it might take the lead on creating an international register of private companies that would reveal beneficial ownership.
[Needless to say, there have always been many ways to hide wealth or earnings and to be an anonymous and low profile. These methods shouldn’t be publicized much anymore. Why? because governmental steps (such as criminalization) can be taken to reduce or eliminate them.]
In other words, countries would not allow the creation of anonymous companies. [They will TRY, but there still will be many ways to skin a cat.]
To ensure that privacy was thoroughly penetrated, beneficial owners of such corporations – trusts, private corporations, shell companies – would be publicly listed in a way that might offer instant access via electronic communications.
[There is no question that it is now infinitely more difficult to avoid being on government computers – but there are still many ways to do it effectively. Criminalization of marijuana or booze (i.e. Prohibition) did not eliminate what politicians saw as “the problem.” It never does! Any new rules or regs won’t work 100%. Redistribution of income schemes by taxation will redistribute taxpayers many. England Sweden and France after WW2 managed to lose virtually all their big taxpayers. Russia and Cuba lost their most productive citizens after the introduction of Communism. Currently, much of the USA upper middle classes & “1%” (i.e. Billionaire class) are rapidly deploying themselves and their assets elsewhere due to tax burdens and the criminalization of far too many victimless crimes.]
The cascade of announcements occurred throughout last week in Washington DC where the IMF and World Bank were meeting with G20 officials.
The speed and gravity of the announcements certainly give rise to the suspicion that they were preplanned.
In fact, we are supposed to believe the opposite.
We are supposed to believe that the entire spectrum of international political and financial executives was so incensed with what the Panama Papers revealed that they were able to act in concert within a couple of weeks of the initial hacks.
This is in stark contrast to most international gambits that take months and even years to orchestrate.
And, yes, it is really unbelievable.
The entire Panama Papers leak is unbelievable. The 11.5 million email leak seems carefully calibrated to embarrass US and British “enemies” – especially political opponents such as Vladimir Putin.
And accusations that Russia itself organized the leak are almost laughable given the recent reactions emanating from Washington DC. More and more it becomes difficult to deny that a substratum of organized globalism exists that is orchestrating a global regime of rules and regulations. These will affect seven billion people around the world while exempting a relative a handful of families and individuals doing the orchestrating.
The mainstream media is habitually blasé about what’s taking place and the way the global regime is growing – quickly and powerfully. It is the biggest story in the world and yet only the alternative ‘Net media’ gives it the singular urgency it deserves. And even then there are plenty of evolutions that are not fully noted.
[Tax avoidance has always been around in every jurisdiction and it always will be. In Napoleonic France, gold coins buried in tin cans was for generations the preferred way to store wealth and keep it out of government hands. Gold ownership and transfers were then (and still are) taxed in France. In the USA gold ownership outside of jewelry and placer gold was entirely outlawed in the 1930s. Until recently gold in the USA (because it was illegal to own and the price was fixed at $33 per ounce) was not a favored storehouse of wealth. At the present time, gold ownership as a way of hiding wealth is still not mainstream. But new ways of keeping what you earn and preserving wealth are continuously evolving. We are reluctant to comment extensively on them for publication. But for example, digital currencies such as Bitcoin are just one of the infinite recent manifestations of the desire for privacy and wealth preservation. As in war, new weapons are always being deployed and shortly thereafter, new shields are invented and deployed against them.]
This ( a global regime of rules and regulations) would seem to be one of them. The ramifications of what just happened in DC are enormous. Financial and investment privacy – a hallowed right for centuries if not millennia – has just been outlawed.
You, of course, are reading this article, and perhaps you do understand the heinous ramifications of what just occurred.
Conclusion: If you are one of the minorities that do, no doubt you are already contemplating ways you can reinforce your privacy in a manner that does not fall afoul of the new regime. Physical delivery of gold and silver from anonymous sources may feature prominently in your thoughts … as no doubt, they should. Source:
Daily Bell, April 18, ’16 //www.thedailybell.com/news-analysis/without-fanfare-financial-privacy-was-wiped-out-last-week-in-dc/
Reader Comment (edited)…… It might be semantics, but the true question should probably be to what extent can one legally preserve one’s privacy in the age of the PC and Internet? We observe that just because the US frowns on something and threatens hell and high water, that something doesn’t become impossible, just because it is disallowed or criminalized.
It seems to me the primary issue is that the middle class thought to use what some would consider the ways and means of their betters in order to avoid their contribution to the funding of their friendly neighborhood rackets, even though these very same rackets are the very thing those very same people keep insisting on having. You know, schools, roads, police, those things…
The upper class, of course, has their own schools, roads, police, etc. If the pesky middling upstarts had left things alone, then all of this hoo-hah could have been easily avoided much the same way it has been for centuries. But no, they had to have access to the secrets of the rich. They had to know.
They had to tell. And now they are angry that the lower classes want to stop them owning their own pieces of the pie, leading to the point (as in the USSR, North Korea, Cuba, Brazil, etc.) that nobody will have any pie. Aside from the people who own the foreign pie clubs, of course.
Cheers, robby the robot
[But all countries won’t necessarily follow the lead of the G20, EU or USA if they can gain revenue and productive new citizens by making their own rules favorable to wealthy interests. Liechtenstein, Delaware, Nevada, Monaco, Bermuda, Bahamas, Uruguay, and Panama are just a few of the jurisdictions that try to find & satisfy the needs of prospective clientresidents. It may be necessary for individuals to take both themselves and their assets out of their present jurisdiction to preserve their freedom, privacy and wealth. That is what the book Bye Bye Big Brother is all about.]
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