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									CARIBBEAN REGIONAL
    CONFERENCE


  BRITISH COLONIAL HILTON HOTEL
              NASSAU
       24-25 SEPTEMBER 1998
WHEN OFFSHORE FAILS
   BACKING OUT

      MR E L BENDELOW

  BASEL TRUST CORPORATION
  (CHANNEL ISLANDS) LIMITED
        THE OFFSHORE WORLD

   Walter Diamond’s estimates
   Half the World’s financial transactions take
    place offshore annually
   Estimated US$ 5 trillion in assets
   Activity - first captive insurance company
    formed in 1927 - not a new development
    MAIN TRENDS INFLUENCING
     FUTURE DEVELOPMENT


   Sociological factors

   Economic activity

   Technical innovation

   Political risks
        PREDICTED OFFSHORE
          DEVELOPMENTS

   A super league of offshore centres will
    develop which provide services on a 24 hour
    basis on a multi-cultural, multi-lingual format
   Competition between centres will increase
    dramatically with newer centres producing a
    large amount of bespoke legislation
   Physical proximity to established capital
    centres no longer relevant due to dramatic
    changes in information technology
      PREDICTED OFFSHORE
     DEVELOPMENTS (CONT’D)

   Pressure on secrecy based centres will
    dramatically increase

   Large new markets for offshore services
    opening up in Central Europe, Latin America,
    and the Pacific Rim
         LIKELY PRODUCTS
       DEVELOPED ECONOMIES

   Tax neutral structures aimed at wealth
    preservation
   Non-trust based structures to facilitate
    international estate planning for civil law
    clients
   Novel legislative products produced to enable
    specific taxation strategies to be facilitated
       PARTIALLY DEVELOPED
            ECONOMIES

   Multi-lingual legal structures will be produced,
    eg Nieu and Western Samoan legislation

   Re-launching of existing products to facilitate
    trade, eg UK Partnerships and Cypriot Dual-
    Resident Trading Companies
LESS DEVELOPED ECONOMIES

   Structures aimed at facilitation and
    management of political risks, eg Indonesia
    and Thailand
   Structures aimed at mitigating tax on inward
    investments into the developed world
   Structures aimed at mitigating personal tax on
    migration to developed economies
       WEALTH PROTECTION
          STRUCTURES

   There are a number of asset protection
    strategies available to protect from adverse
    litigation
   Gift giving, insurance structures, pension
    structures, partnership structures, trustee
    structures
   Various types of asset protection trust
    legislation
    WEALTH PROTECTION
    STRUCTURES (CONT’D)

 Trial   de novo

 Statutory   time limits

 Family   trust
      INTERNATIONAL TRADE
    FACILITATION STRUCTURES

   UK Partnerships

   Non-disclosed Agency Companies

   Limited Liability Companies

   Dual-resident Companies

   IBC Branches
    POLITICAL AND ECONOMIC
        RISK STRUCTURES

   Private Trust Companies and Blind Trusts

   Foundations (in Liechtenstein and Panama)

   Stiftungs (in Liechtenstein)

   Hybrid Companies

   Bearer Share Companies
    INTERNATIONAL ESTATE PLANNING
     VEHICLES FOR CIVIL LAW CLIENTS


   Trusts

   Joint Shareholder Companies

   Special Purpose Hybrid Companies

   Limited Partnerships
        NEW USES FOR OLD
          STRUCTURES

   Dual Resident Companies

   Insurance Products
   LLC (Limited Liability Companies)
   UK Partnerships
    UK GENERAL PARTNERSHIP
       Tax Haven Co                      UK Co


1 General Partnership
2 Partnership Agreement
3 UK Co is a minority partner
4 UK Co carries out “paperwork”
5 Tax Haven Co carries out trading
6 UK Co receives 5-10% of Partnership profits
7 UK Co is taxed in normal way on its share of profits
8 Global Ruling obtained
            OFFSHORE WORLD
              CONCLUSION

   The offshore world as a sub-set of world
    economy is extremely large
   The business sector is extremely well
    established and has been in existence for
    over 70 years
   All major financial institutions have significant
    presence offshore
   The purpose of offshore finance centres is to
    enable the arbitrage of legal systems
          OFFSHORE WORLD
        CONCLUSION (CONT’D)

   The first division of offshore finance centres is
    highly regulated and is certainly not
    contaminated with criminal funds
   The offshore world is a vital element in the
    world’s continued economic growth and
    integration, by enabling entrepreneurs and the
    owners of wealth generally to maximise their
    returns and minimise their costs
          OFFSHORE WORLD
        CONCLUSION (CONT’D)

   The technological changes promised in the
    new millennium are going to provide even
    more enhanced opportunities for both onshore
    and offshore practitioners to make more use
    of offshore finance centres to the great benefit
    of their clients
OFFSHORE WORLD




    The End

								
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