I am going with....
March 31, 2009
tg-77
U.S. Treasury Secretary Tim Geithner,
Gibraltar Chief Minister Peter Caruana Sign Agreement
to Allow for Exchange of Information on Tax Matters
Today in London Ahead of G20 Leaders Summit
WASHINGTON The U.S. Department of the Treasury and the Government of Gibraltar today announced that the United States and Gibraltar have signed an agreement to allow for exchange of information on tax matters between the United States and Gibraltar. The agreement was signed by Secretary Tim Geithner and Gibraltar Chief Minister Peter Caruana in London in advance of the G20 Leaders Meeting, where the topic of offshore tax evasion and strengthening the implementation of international standards by offshore financial centers will be a topic of discussion.
President Obama's FY2010 budget calls for a robust portfolio of Internal Revenue Service (IRS) international tax compliance initiatives. "The President's budget makes a commitment to reduce international tax avoidance. As part of this commitment, the Treasury Department is embarking on an ambitious effort to deal with offshore compliance as evidenced by today's agreement with Gibraltar," said Treasury Secretary Geithner. "I will continue to demand transparency from countries on behalf of American taxpayers. I look forward to Gibraltar's cooperation with the United States and to this agreement serving as an example for other financial centers around the world."
The Chief Minister of Gibraltar, Peter Caruana said, "We are delighted that our first agreement of this kind is with the United States. Gibraltar is committed to the OECD standard and the offer of such an agreement is open to other countries. Properly regulated exchange of information has become increasingly important. We look forward to co-operating with the United States under this agreement. As part of the European Union Gibraltar already complies with EU standards of financial regulation and exchange of information."
The Tax Information Exchange Agreement (TIEA) with Gibraltar will provide the United States with access to information it needs to enforce U.S. tax laws, including information related to bank accounts in Gibraltar. The TIEA is the first of its kind for Gibraltar.
The TIEA will permit the United States to seek information from Gibraltar and vice versa on all types of taxes in both civil and criminal matters. As with all agreements to exchange information, only specific tax authorities are allowed to receive and send information. Information exchanged pursuant to the TIEA may be used only for tax purposes, and the tax authorities must safeguard the confidentiality of information exchanged pursuant to the TIEA.
The TIEA will allow the United States to ask for criminal tax information relating to any taxable year and for civil tax information relating to taxable years beginning after 2008 (assuming that the TIEA enters into force this year). Under this agreement, Gibraltar obtains the same facilities from the United States.
http://www.ustreas.gov/press/releases/tg77.htm
Trust Taxation
Income arising with a Gibraltar trust and which is derived from outside of Gibraltar is tax exempt.
Category 2 residents can be beneficiaries of Gibraltar trusts.
http://www.almanac.gi/pdf/Category-2.pdf
http://www.imf.org/external/pubs/ft/scr/2007/cr07155.pdf
Basel 2: The Basel Committee strikes back
Cris van Kempen
Director, Governance, risk and compliance practice
29 January 2009Unfased by ill-informed critics, demanding the burial of the Basel 2 Framework, the Basel Committee has released in mid-January a package of consultation papers, aimed at improving the Basel 2 Framework.
The Basel Committee is the international body of bank regulators, charged with promoting common international best practices in risk management of banks and in regulation of banks.
In the aftermath of the outbreak of the global financial crisis, the Basel Committee identified two main areas of shortcomings in the 2004 Basel 2 Framework. These two areas are:
Firstly, the reflection of risks inherent in a banks trading book in the minimum capital requirements. The market risk part of Basel 2 was based on the 1996 amendments to Basel 1, without much change. In response to the gaps appearing during the financial crisis, bank regulators are now proposing several supplementary measures, which will lead to a higher capital requirement, through introducing:
- A stressed Value-at-Risk (VaR) requirement
- An Incremental Risk Capital charge (IRC), covering default risk in the trading book.
As recent research by Moodys rating agency showed, an extra capital charge for risks in the trading book, is certainly opportune. Moodys research of 158 banks in 32 countries, revealed that at the end of 2007, market risks represented only 7% to 15% of a banks risk weighted assets, which determine how much capital a bank must hold as a buffer against potential losses. However, most banks suffered the bulk of their losses from trading book positions and not from credit defaults in their banking books.
Secondly and arguably of even higher impact on the way banks will operate in the future, changes proposed to strengthen Pillar 2 guidance and Pillar 3 disclosure requirements. The changes addressed in this part of the consultative papers, cover all three issues listed as important causes for the global financial crisis in my earlier blog, Basel 2: the family scapegoat, namely:
- Remuneration packages in investment banking and of management boards;
- Transparency of a banks risk profile;
- Managements true understanding of both the banks risk profile and its risk positions.
For non-Basel 2 countries like Russia, implementing the new guidance on Pillar 2 and Pillar 3 especially, would be of great benefit to the banking industry.
Bank owners, bank managers, if you are considering the strategic options for your bank, then some or all of the following issues are probably keeping you awake at night:
- How to diversify my funding options, to ensure liquidity at all times
- How to adapt my business model to be successful in an economic downturn
- How to strategically re-position the bank to benefit from economic growth, when it returns
- How to generate cash from my non-performing loans portfolio
- How to choose the right clients to lend to, in an economic crisis
- How to avoid acquiring so many non-performing loans, ever again.
The creativity of yourself and people around you, will produce interesting options in answer to these questions, but the current global financial crisis has shown that none of them will work if there is one basic element missing. That crucial element is trust. Trust from all stakeholders that the bank will deliver on its promises. Trust is the main benefit generated by the acceptance of the guiding principles of Pillar 2 and Pillar 3 and the implementation of the risk management practices derived from them. The increased transparency on the risk profile of the bank and on the active role that senior management takes in managing the risks, will build and maintain trust in the bank with all stakeholders: clients, staff, shareholders, regulators, analysts and society as a whole.
http://www.pwc.com/extweb/challenges.nsf/docid/42135E3695B16E4B8025754B003722C9
Public Private Participation from funds drived from a Trust in a multitude of Islands..
G_Kids Isle among other are all Trust Friendly..
I wonder if we can Lease a BG from this Group to then recieve a Loan based on our credit being enhanced to then place said funds into a Trust that then can be leveraged and the funds recived X's ??? then placed into a Dark Pool for trading purposes?
They say they can complete everything mentioned I just wonder if they are willing to make good. I do not know the laws in the local but I will veture out on a limb and say "No" they can not provide a solution to the structure provided let alone one that is Tax Free.
Be well all, JW
