1	TAX FREE INVESTING THROUGH AN I.B.C. An introductory seminar on a tax free investment technique utilized by the wealthy to legally avoid all income and capitol gains taxes on profits derived from investment securities and stock market transactions.
2	The U.S. Tax Haven The United States is one of the best tax havens in the world - for foreign investors. Under the provisions of the U.S. law, informed foreign investors can trade stocks, Treasury bonds, mutual funds, commodities, etc., in any quantity, free from all U.S. capitol gains and income taxes.
3	Excessive and Penal Taxation It is a simple fact that excessive and penal taxation by a nation of its own people encourages its citizenry to trade in their neighbor's house in order to obtain a more favorable tax rate, or to legally avoid taxation in its entirety where allowed.
4	What is an I.B.C. ? So, What is an I.B.C. ? An I.B.C. is an: International Business Corporation. An I.B.C. is formed and incorporated outside of the United States.
5	Foreign Residents Pay Tax Under the U.S. Tax Code, only when a foreign company or trust takes up permanent residence within the United States will they be subject to U.S. capitol gains and income taxes in the same way as domestic taxpayers.
6	Non-Residents Are Exempt In the United States, capitol gains realized by foreign corporations and other nonresidents "not engaged in a trade or business within the United States" are exempted from tax under 26 U.S.C. §§ 871, 881 and 897(c)(3).
7	Treasury Regulations U.S. Treasury Regulations at § 864-2(C)(1)&(2) provides an exception for what embodies being "engaged in a trade or business within the United States".
8	“Trade or Business” Under U.S. regulations, a nonresident's stock market transactions, carried out through a U.S. stockbroker or agent, are not considered to cause the nonresident to be "engaged in a trade or business within the United States".
9	Can You Enjoy These Privileges ? SO WHAT DOES THIS MEAN TO YOU ? CAN A CITIZEN ALSO ENJOY THESE TAX FREE INVESTING PRIVILEGES AFFORDED TO FOREIGN INVESTORS ? WELL, NO, AND YES !
10	Citizen or Company ? NO - Not if you invest in America under your own name as an individual citizen, BUT… YES, - If you invest through an I.B.C. that you have formed in an off-shore environment !
11	It’s a Secret Tax Haven (but not for you) W HY DOESN’T OUR GOVERNMENT TELL US THAT ? The U.S. and other industrial nations simply cannot advertise the fact that they are a splendid tax haven for foreigners, because it would cause dissent among the local citizenry.
12	Get Setup Correctly SO, WHAT DO YOU NEED TO KNOW ABOUT I.B.C.’s TO SET ONE UP CORRECTLY FOR THESE TAX FREE INVESTMENT PURPOSES ?
13	“U.S. Shareholder & C.F.C” A U.S. person is deemed to be a "U.S. Shareholder" of an IBC if he owns or controls 10% or more of the voting stock of the IBC. A "Controlled Foreign Corporation" (CFC) is one where more than 50% of its value or voting stock is owned by "U.S. Shareholder(s)".
14	Negative Consequence There are, of course, negative tax consequences attached to being identified as a “U.S. Shareholder”, or as the controller of a “C.F.C.” !
15	Two Classes of Stock for I.B.C. created with Trusts So, we simply: Issue two classes of stock for the IBC - voting shares and value shares; and Couple the creation of the IBC with the creation of an offshore Trust, where we hold the voting shares of the IBC in the offshore Trust, and retain the value shares within our family estates.
16	Legal Avoidance Treasury Regulations under §§ 958-1 speak repeatedly and often of the usage of one and two classes of stock having voting or non-voting powers. By coupling the IBC with the offshore Trust, and holding the voting shares of the IBC in the Trust, we legally avoid the status of “CFC” and “U.S. Shareholder”.
17	Trust Advantages in Estate Planning. Since a trust is a separate legal entity, it can be used in estate planning to hold assets in suspense, in capitol gains tax planning to avoid time apportionment, and in income tax planning to reduce the effective rate of tax, and by changing the residence to defer income tax and capitol gains tax, often for long periods of time.
18	Corporate Grantors When the trust's grantor trust status makes the beneficiary's income tax free, retaining that status for as long as possible becomes important. To solve the problem of the grantor predeceasing the beneficiaries, thus inconsiderately ending the trust's favorable tax status, use of a corporate grantor is recommended.
19	Foreign Corporate Grantors It is clear that a corporation may be the grantor and the owner of a trust. Thus, a foreign grantor could create a corporation which in turn would create a grantor trust. The death of the creating shareholder would terminate neither the corporation's separate existence nor the trust's grantor status.
20	Now We Can Take Advantage of These Laws NOW WE CAN INVEST TAX FREE TOO ! BUT WHERE SHOULD WE SET UP OUR IBC / TRUST COMBINATION ? WE RECOMMEND THE BAHAMAS OR ANGUILLA !
21	Why The Bahamas or Anguilla ? WHY THE BAHAMAS OR ANGUILLA ? Close to the U.S. - $125 air fare - just 50 miles from the coast of Florida, Zero-tax havens, Large tax haven - over 5,300 sq. miles, Under the Bahamas IBC Act of 1990, Large volume of tax haven business.
22	Why The Bahamas or Anguilla ? WHY THE BAHAMAS OR ANGUILLA ? No personal income tax, no corporate income tax, no capitol gains tax, no withholding tax, no business tax, no estate tax.
23	Why The Bahamas or Anguilla ? WHY THE BAHAMAS OR ANGUILLA ? No gift tax, no inheritance tax, no death tax, no employment taxes, no sales taxes, no probate fees.
24	Why The Bahamas or Anguilla ? WHY THE BAHAMAS OR ANGUILLA ? They each have a well tested Bank Secrecy Code protecting the foreign investor against unauthorized disclosure of financial information to outsiders, including the U.S. government and its agencies and agents.
25	Why The Bahamas or Anguilla ? WHY THE BAHAMAS ? The Bahamas has a Domicile of Trust Act (1991), designed to safeguard Trusts from attack from other jurisdictions, and that extends the life of a Trust domiciled in the Bahamas to 80-100 years after the death of the named beneficiary, if desired.
26	Why The Bahamas or Anguilla ? WHY THE BAHAMAS OR ANGUILLA ? Corporations, individuals, partnerships, trusts and estates, including nonresident controlled Bahamian corporations (IBC’s) all enjoy this complete immunity from taxation.
27	I.B.C. Advantages An IBC is not taxed at home. An IBC can open bank accounts, retain local professional services, hold its own directors and shareholders meetings in the Bahamas (if desired). An IBC may also hold the shares or debt obligations of other companies incorporated in the Bahamas.
28	I.B.C. Restrictions An IBC's shares may be held by residents of the Bahamas, BUT A Bahamian IBC cannot conduct business with persons resident in the Bahamas, and cannot invest in real property situated in the Bahamas.
29	I.B.C. Banking You will be able to open bank and security accounts for your IBC, in both the Bahamas and the United States, and other countries if you wish, where only you will have signature authority over the accounts. You can obtain a VISA and/or debit card from the Bahamas largest bank.
30	I.B.C. Formation & Incorporation An IBC is formed by simply filing a Memorandum and Articles of Association with the Registrar's Office. An IBC may be incorporated in 24 hours in the Bahamas with two subscribers.
31	I.B.C. Shares The IBC may issue shares with or without par value. In the form of bearer shares, or shares registered in someone's name.
32	I.B.C. Share Capital There is no fixed amount of authorized share capitol requirements. There is no minimum authorized share capitol requirement amount. And there is no limit on amount of authorized share capitol issued.
33	I.B.C. Capitalization Capitalization of the IBC is effected by exchanging cash or money for shares in the company. Current U.S. policy does nothing to inhibit you from displacing any amount as paid-in capitol, at any time.
34	Unregistered Foreign Trusts Properly arranged foreign trusts do not have to be registered with either the U.S. government or the tax haven government, thus names of beneficiaries, trustees and grantor(s) are not a matter of public record, and are not subject to disclosure on IRS forms 3520 or 3520-A.
35	No Approval Necessary. You do not need government approval to form an IBC, regardless of the place of incorporation, or the purpose of the company. An I.B.C. or foreign Trust that does not engage in “a trade or business within the United States” does not have to file a U.S. Income Tax Return
36	An I.B.C is Exempt From Tax in the U.S. In the United States, an IRS Form W-8 is presented to banks and brokers in order to establish the exemption from tax (and tax withholding) provided by U.S. law for nonresident entities "not engaged in a trade or business within the United States".
37	Foreign Transfers Transfers of property to a foreign trust by a foreign corporation triggers no U.S. income or gift tax liability, because tax havens typically have no gift or income taxes. Such transfers can be made routinely, without incurring any income or gift tax liability what-so-ever.
38	Outside U.S. Jurisdiction U.S. Code recognizes and states that those transfers are outside the scope of the U.S. tax laws and its authorities, The business of the IBC (conducted outside of the United States) is recognized by the IRS and U.S. Code as not being taxable to the United States government.
39	Trust Distributions to Beneficiaries. IRS Revenue Ruling 69-70, issued in 1969, states: "An individual beneficiary who is a resident of the United States is not taxable on a distribution from a foreign trust considered to be owned by a nonresident alien grantor”
40	Who We Are. My associates in this program include: an IBC and Trust expert in the Bahamas, a mid-size Law firm with an office in downtown Nassau, and a U.S. tax consultant.
41	Trusted I.B.C. Experience The lawyers have over 40 years of business experience here in the Bahamas, and the Bahamian IBC and Trust expert has been working with the Bahamian IBC laws since their creation in 1990.
42	I.B.C. Set-up Fees INITIAL SET-UP: I.B.C. Set-up fees $1,200 Agent, P.O. Box, and tel. $600 Trust instruments $600 Consult & Assist $600 --------------------------- ------- TOTAL: $3,000
43	I.B.C. Annual Maintenance Fees ANNUAL MAINTENANCE: (due each year, after 1st year) Agent/Office/Box & tel. $600 Trustee fee $200 Authorized Capitol Fee $250 (under 50k authorized) ---------------------------- ------ ANNUAL TOTAL: $1,050
44	The Right to Legally Avoid. The Supreme Court says: "The legal right of an individual to decrease or ALTOGETHER AVOID his/her taxes by means which the law permits cannot be doubted" Gregory v. Helvering, 293 U.S. 465
45	Wealth Everywhere Participates The London Times reports that about half of the world's money now moves around in an offshore environment ! Now, isn’t it time that you took advantage of these laws too ?
46	Get Your I.B.C. GET YOUR OWN TAX-FREE INVESTMENT PROGRAM STARTED ! GET YOUR OWN I.B.C. & OFFSHORE TRUST PACKAGES AS A SPECIAL COMBINATION PACKAGE ! send a check (with order form) to: R-SAFE OFFSHORE P.O. Box 7720, Arlington, VA 22207
47	Package Price. SPECIAL PACKAGE PRICE : $3,000 back to offshore home page