< Sovereign Society Index >

In This Issue:

* COMMENT: British Labour Trashes Colonies

* OFFSHORE: Cayman Bankers Love the IRS Agreement. Swiss News: No on Capital Gains Tax; EU Residency Accord; Annual Rich List. Italian  Alps Amnesty. Jersey-French Info Deal. Belize Clash. Argentine Slide.  Check Out Romania. OECD Targets IBCs. U.S. Senate Opposes Tax Cartels.

* WEALTH: Europe Taxes Hurt. Greenspan Hits EU Flaws. Euro Change. U.K.
  Finance Police. Irish Tax Evasion. IRS Armed Accountants. Taxman Tune.

* PRIVACY: U.S. World Computer Police. Customs Data Base Use.
  Freedom vs Security. Foreign Affairs. Canada Repeals Liberty.

Shortly before Tony Blair's "New Labour" won re-election last June this column noted: "In the four years of Labour's reign the UK has become a police state with US style asset forfeiture, lawyers and accountants forced to spy on clients, blanket communication police interception and
a Foreign Office in league with the OECD that, with a vengeance, has imposed a new colonialism on British overseas territories' financial activities."

One year ago in this column I denounced Labour's blatant use of the arcane procedure of royal Orders in Council to repeal laws in the UK's supposedly self-governing overseas territories. I noted then that "This precedent underscores their eventual end as attractive offshore
financial centers."

The forced capitulation of the Cayman Island government to the U.S. IRS reported last week, is yet another example of Labour's continuing trashing of its colonies. Having encouraged the Caymans over three decades to become one of the world's leading offshore financial centers based on strict financial privacy, the British government struck what may be a death blow to the islands' 33,000 people and their economy. 

Bermuda has already followed orders and changed its laws to allow enforcement of foreign tax laws within it borders. Next on Labour's abandonment list is Gibraltar. London has all but announced it will cede some sovereignty to Spain within two years, a move resolutely opposed by Gibraltar's 30,000 inhabitants. The Channel Islands and the Isle of Man, although Crown dependencies, are also being forced to follow Labour's orders, repealing privacy laws and ending what the
OECD hypocritically insists is "harmful tax competition."

A distinguished former member of the British foreign service wrote me a few days ago: "The Caymans agreement underscores the weakness of the dependencies. I witnessed the sell-out in Rhodesia. Whether its terrorists or taxes, when the UK lowers its flag in a colony the mess left behind has to be cleaned up by others. Is Whitehall or Ian Smith answerable for the Mugabe mess?"

This new British colonialism could be cured if the overseas territories choose independence, as they have a right to do. But that requires political leadership with a degree of courage that appears lacking in the colonies.

Undoubtedly this will enhance the offshore standing of independent haven nations such as Panama, Switzerland, Austria and Belize. But the list of acceptable haven nations is getting short.
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LINKS, Gibraltar:
http://news.telegraph.co.uk/news/main.jhtml?xml=/news/2001/11/25/wgib25.xml
http://www.independent.co.uk/story.jsp?dir=1&story=107348&host=1&printable=1
Cayman editorial: http://www.caymannetnews.com/stories.html#Editorial
Zimbabwe (the former Rhodesia) today:
http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3T1N1FGQC

CAYMAN BANKERS EMBRACE I.R.S. SCRUTINY
Got cash in a Cayman Island bank? If privacy is your thing, better move move it. The CI Bankers Assoc. wants you to know they "applaud" the new US-Cayman tax agreement that makes them offshore US tax collectors. LINK (scroll down): http://www.caymannetnews.com/
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SWISS VOTE AGAINST CAPITAL GAINS TAXES
Smart Swiss voters reject a proposal to impose a capital gains tax, and again support their citizen army. LINK: http://www.swissinfo.org/sen/Swissinfo.html?siteSect=111&sid=933753
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SWISS TO ALLOW E.U. CITIZENS RESIDENCE
Under new Swiss-EU agreements, all EU citizens with means will have access to Swiss residency. To find out more, see LINK: http://www.henleyglobal.com/swissresidence.htm
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SWISS ANNUAL 'RICH LIST'
The yearly listing of Switzerland's 300 richest residents. LINK: http://www.tax-news.com/asp/story/story.asp?storyname=6528
-----
ITALY OFFERS ALPS AMNESTY
ROME. The Italian government wants to encourage repatriation of offshore funds, most stashed in neighboring Switzerland. LINK:
http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3GH9M5RUC
-----
JERSEY TO GIVE INFO TO FRANCE
The Channel Island signs an agreement to give financial information to the France for stock fraud investigations. LINK: http://globalarchive.ft.com/globalarchive/article.html?id=011203000610
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BELIZE BORDER CLASH AGAIN
This tax and asset havens continues to undermine its credibility with lethal borders clashes with neighboring Guatemala. LINK:
http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3XVXN3OUC
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COLLAPSING ARGENTINA MAY DOLLARIZE
With a run on banks hurling Argentina toward collapse, a near-bankrupt government may adopt the US dollar as the national currency. LINKS:
http://www.washingtonpost.com/ac3/ContentServer?articleid=A44052-200 1Dec1&pagename=article
Cato Report: http://www.cato.org/dailys/04-28-01.html 
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WHEN IN ROMANIA
Sovereign Society Council of Experts member Doug CASEY says investment potential in ROMANIA is overlooked and therein lies opportunity.
LINK: http://www.escapeartist.com/OREQ3/Romania.html
-----
OECD LAUNCHES ANTI-CORPORATE PLAN
Aimed at jurisdictions that specialize in corporate formation (Panama, British Virgin Islands, Delaware, Nevada), the OECD wants worldwide regulations to control alleged criminal use of business. LINK: http://www1.oecd.org/publications/e-book/2101131e.pdf
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U.S. SENATE CONSISTENCY?
Hopefully a precedent, the US Senate votes against giving states authority to create an OECD-like tax cartel to tax transactions outside their borders.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=6510

HIGH TAX EUROPE STIFLES GROWTH, JOBS
E.U. bureaucrats themselves admit EU growth is thwarted by member states high taxes, except in low-tax Ireland and Luxembourg. LINK:
http://europa.eu.int/comm/enterprise/enterprise_policy/competitiveness/doc/ competitiveness_report_2001/chapter_2.pdf
-----
GREENSPAN HITS E.U. FLAWS
The chairman of the US Federal Reserve underscores anti-competitive
restrictions holding back Europe's economies. LINK:
http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3Y5X0FOUC
-----
EURO MEANS BIG CHANGE
Europe faces major changes on Jan. 1st with the euro launch. LINK:
http://www.businessweek.com/globalbiz/content/euroage.htm
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E.U. EXPANDS ANTI-DIRTY CASH RULES
Proceeds of any crime ware targeted by new money laundering rules.
LINK: http://www.tax-news.com/asp/story/story.asp?storyname=6373
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U.K. SUPER AGENCY PROMISES TEETH
LONDON. One big bureaucracy will rule over finances. LINK:
http://www.ananova.com/business/story/sm_461755.html?menu=business.latestheadlines
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IRELAND CHASES TAX EVASION
The P.M. promise to pursue tax evaders; the opposition scoffs. LINK:
http://www.tax-news.com/asp/story/story.asp?storyname=6508
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I.R.S. WANTS WELL-ARMED ACCOUNTANTS
IRS Criminal Investigation unit hires accountants with guns.
-----
R.I.P. GEORGE HARRISON
The 'quiet Beatle' who died last week left us his famous song "Taxman" as a pop reminder of grasping government. LINK:
http://www.der-markt.com/home/page.jsp?queryId=1943

NEW LAW MAKES U.S. WORLD COMPUTER POLICE
The US Justice Dept. may try to be world cyber police. LINK:
http://www.businessweek.com/technology/content/nov2001/tc20011126_6812.htm
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U.S. CUSTOMS DATA BASES TRACKS EVERYTHING
Now touted as an anti-terror system, the US Customs data base and is being used to track Americans movement and business. LINK:
http://www.nandotimes.com/technology/story/183523p-1775168c.html
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FREEDOM EXCHANGED FOR SECURITY?
Commenting on anti-terrorism laws, US Rep. Ron Paul (R-Texas) says Americans must not surrender freedom in a false exchange for security.
LINK: http://www.house.gov/paul/tst/tst2001/tst112601.htm
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ATTACK ON AMERICA: BACKGROUND
Foreign Affairs magazine back articles on terrorism, Islamic radicalism.
LINK (scroll down): http://www.foreignaffairs.org/home/terrorism.asp
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CANADA ANTI-TERROR BILL SHREDS LIBERTIES
Rammed through Parliament, Canadian liberties rapidly are being destroyed by the 'Liberal' government steamroller. LINK:
http://www.washingtonpost.com/wp-dyn/articles/A46646-2001Dec2.html
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