Offshore News: April 2006
19.04.2006 Last week a California court informed that the US Internal Revenue Service had been granted permission to search customer information from online payment service, PayPal. This is needed to fight tax avoidance by means of using offshore credit and debit cards.
The payment service has been ordered to provide the data on US taxpayers who use Visa, MasterCard and American Express cards issued by banks in Switzerland, Latvia, Cyprus, Singapore, Anguilla, Luxembourg, the Channel Islands, Costa Rica, Hong Kong, the Isle of Man and Malta.
16.04.2006 The governor of the Central Bank of Seychelles (CBS), Francis Chang-Leng, expects that the existing controls on foreign exchange will have been removed by the end of 2006. He said that removing exchange controls would help quell black market activity and avoid money laundering.
Not to undermine the stability of the financial system, exchange controls shall be phased out soon. In order to improve the situation with investment in the Seychelles, some particular measures regarding facilitating a more market-driven economy and reducing domestic costs are to be taken.
Mr Chang-Leng does not expect that the lifting of exchange controls will change the Seychelles rupee rate. Currently, Seychelles rupee is fixed to the USD at a rate of R5.5.
08.04.2006 The Swiss Ministry of Finance has published the 1st official figures on withholding tax revenues collected in Switzerland under the European Savings Tax Directive. The Ministry suggested that the published data evidences that the Swiss system of tax retention is working.
For the 2005 collection period before registration deadline (31 March 2006), the Federal Tax Administration received about 138 million Swiss francs. Out of this sum, about 103 million Swiss francs will be transferred to the beneficiary EU member states.
Switzerland will receive about 34 million Swiss francs for its additional operating expenses. The Confederation will get about 31 million Swiss francs of this, and the cantons - about 3 million Swiss francs.
Swiss banks spent up to 300 million Swiss francs to introduce the tax retention scheme.
The Swiss system of tax retention relates to all interest payments covered by the agreement of a paying agent in Switzerland and an individual resident for tax purposes in an EU country.
The initial rate is 15%, and it will be rising up to 35% from 2011.
05.04.2006 Today, 05 April 2006, The Guernsey Financial Services Commission (GFSC) issued a revised guidance note on Qualifying Investor Funds. According to the new rules, the term of Professional Investor now includes an individual investor investing at least 100 000 USD in such a fund. The note also re-emphasises the due diligence obligations that are a subject to Guernsey Licensees when they submit applications for Guernsey Qualifying Investor Funds.
The Guernsey Qualifying Investor Fund regime was introduced last year to provide an approval process for funds targeted at professional and knowing investors.
The GFSC provides necessary fund consents in 3 working days of submission if the application is duelly complete.
36 Qualifying Investor Funds were approved in the first year of the GFSC regime's operation.
03.04.2006 The Commonwealth of the Bahamas was rated by Standard & Poor's. S&P has affirmed its 'A-' long-term and 'A-2' short-term Sovereign Credit Ratings. S&P predicts that, in the future, the strong performance of the tourism and finance sectors will improve the Bahamian economy.
In accordance with S&P, the long-term ratings are stable and can change for the better if the government manages its fiscal pressures well and foreign direct investment remains high.
The ratings reveal the Bahamas' macroeconomic stability, prudent fiscal policies, steady monetary position, politically stable environment as well as high standard of living.
