Offshore News Digest for Week of August 26, 2002

BERMUDA TO IMPOSE INCOME TAXES?

HAMILTON. Despite denials from the Finance Minister, the editor of a major Bermuda paper stands by his claim that the government plans to impose an income tax.

PORTUGUESE PASSPORT SCAM

An offer now circulating on the Internet is offering Portuguese passports for US$2,000. Chris KALIN says: "... it's one of those where you send an advance payment and nothing happens afterwards. To learn more about legal ways to acquire alternative residency and citizenship,

SWISS AMBASSADOR TO LUXEMBOURG FIRED AFTER LAUNDERING ARREST

Peter Friederich admits evading taxes and forging documents but denies laundering charges.

JAPAN MAY RESTORE INSURANCE ON BANK DEPOSITS

TOKYO. Deposit guarantees scheduled for removal in April 2003, but could be restored amid fears of mass bank runs.

FURTHER US STEEL EXCLUSIONS MAY WARD OFF TRADE WAR

Negotiations also continue with WTO on "unfair" US tax breaks for exporters.

VICTIMS PURSUE ALLEGED FRAUDSTERS IN NIGERIA

Rare prosecution of notorious advance fee scams.

FOREIGN COMPANIES REVOLT AGAINST NEW US ACCOUNTING RULES

Now some of GERMANY'S biggest companies are opposing U.S. rules that make executives personally responsible for their corporate bookkeeping.

EU DENIES WIRETAPPING PLANS

BRUSSELS. The EU denies a report from human rights group STATEWATCH that in response to US pressure, it plans to make telecommunications companies and Internet service providers store records of private e-mails, faxes and phone calls for two years.

CONTROVERSY MOUNTS IN JAPAN OVER NATIONAL DATABASE

Efforts by government to assign national ID number to every citizen meets unexpected opposition.

SECRET COURT RULES AGAINST ASHCROFT ON EXPANDED WIRETAPS

Top secret "Foreign Intelligence Surveillance Court" cites more than 75 cases where it was misled by the FBI in applications for wiretaps and other electronic surveillance. White House plans appeal.

Court decision.

The first 21st century police state?

BAHAMAS WILL RECONSIDER CORPORATE REFORMS

NASSAU. New government will review reforms demanded by wealthy countries to reign in "harmful tax competition" that have led to economic collapse.

OFFSHORE BANKING HITTING "HARD TIMES?"

GENEVA. Layoffs at Swiss banks.

Deposits in Guernsey fall.

SECRET DEAL ON GIBRALTAR

BRUSSELS. Spain intends to announce an as-yet unreleased agreement to coincide with a referendum on sovereignty in Gibraltar.

Gibraltar Labour party calls for tax cuts for individuals.

BERMUDA INSURANCE BOOM UNSUSTAINABLE

LONDON. New report from A.M. Best doubts Bermuda's staying power due to "a lack of local intellectual resources and office space."

BIG BAILOUTS ARE BACK

WASHINGTON, D.C. The International Monetary Fund recently gave Brazil a US$30 billion loan last week, paid for by taxpayers in IMF member countries, despite the spectacular collapse of Argentina's economy after a huge bailout in 2001.

Enron admits it's really Argentina (satire).

AUSTRALIA MULLS REVISED TAX LAWS

HONG KONG. Elimination of double taxation on dividends, more favorable treatment of expatriates, among measures considered.

PRESSURE INCRASES ON TYRANT MUGABE

LONDON. UK Prime Minister Tony Blair urges South Africa to help curb Robert Mugabe's reign of terror in Zimbabwe.

US TO CHANGE THE TAX TREATMENT OF DIVIDENDS?

WASHINGTON, D.C. Bush proposal to eliminate triple taxation of dividends will go a long way toward rationalizing US Tax Code.

US TELEPHONE RECORDS OPEN TO THE HIGHEST BIDDER

WASHINGTON, D.C. Unless you explicitly "opt-out," your home, office and cellular dialing records can now be sold to anyone.

NEW SCANNER SEES THROUGH CLOTHES

RICHLAND, WASH. A recently developed holographic imaging device that could be used for anti-terrorism applications provides the most explicit view yet.

BUSH CAN'T HOLD SECRET DEPORTATION HEARINGS

CINCINNATI, OHIO. Federal appeals court says the administration illegally deported hundreds of suspected terrorists.

Court decision.

COMPUTER EXPERT PENETRATES MICROSOFT SOFTWARE USED FOR INTERNET BANKING AND E-COMMERCE

STOCKHOLM. Customer accounts at Sweden's largest banks, and perhaps in other countries, are at risk.

C.F.P. EXPOSES BUSH OFFSHORE SCHIZOPHRENIA

WASHINGTON. Against the EU savings tax directive; for the IRS reporting of foreigners' US income. Termites at work at Treasury.

BERMUDA VIEW OF U.S. DEBATE

HAMILTON. Tax haven looks at US stand on re-incorporation.

MILLIONAIRE FROM MANY NATIONS

LONDON. Parliament satisfied that Lord Ashcroft is a taxpaying Brit, not a Floridian or a Belizean, even if he lives in all three places.

WORLD CORRUPTION ON THE RISE

Transparency International finds Bangladesh worst, Finland cleanest.

Transparency Report here.

SWISS corruption found to be minimal.

GUERNSEY ASSETS DOWN, TAXES DOWN TOO?

ST. PETER PORT. Managed assets falling, but tax cuts may be near.

F.B.I. SEEKS GRENADA BANK FRAUDSTERS

TORONTO, Canada. Millions lost in Grenada Bank fraud.

DOMINICA BOWS TO F.A.T.F. RULES

ROSEAU, Dominica. Government shuts down one of last offshore banks.

OFFSHORE BANKER FINANCES U.S. SENATOR

New Jersey Senator gets $90,000 from accused Texas-Antigua banker.

DUTCH OFFSHORE TAX EVASION TARGET

THE HAGUE: Over 10,000 Dutch offshore bank accounts traced.

ANOTHER OFFSHORE PRODUCT: FAKE DIPLOMAS

A US person in Romania with a UK mail drop and a bank in Cyprus.

TWO CLOSED BAHAMAS BANKS POSSIBLE TERROR ROLE

Akida Bank and Bank Al Taqwa, based in The Bahamas.

BERMUDAN EXPLAINS U.S. TAX 'LOOPHOLES'

HAMILTON. Expert says public doesn't understand tax laws.

BRITISH BUSINESS SCARED OF NEW U.S. LAWS

LONDON. Directors of US registered companies nervous.

U.K SPECIAL TAX DEALS UNDER SCRUTINY

LONDON. Deal with Harrods' boss, Mohammed Al Fayed questioned.

RED CHINESE EMBRACE NEW CAPITALISTS

BEIJING. Leading entrepreneurs to join CP central committee.

FLORIDIANS STOLE FROM OFFSHORE FUND

Two ex-Florida officials stole $6.5m from now defunct Evergreen Fund.

TIME FOR A WRITTEN BRITISH CONSTITUTION?

LONDON. Now that all the rights are gone, write down what's left.

CANADA'S RULERS WANT NET SURVEILLANCE

OTTAWA: Full-time wiretapping on Internet activity planned.