www.bethelfinance.com/rm
The Chairman of the Cayman Islands' Stock Exchange Anthony Travers has condemned allegations made by Austria's Finance Minister Maria Fekter that the British Virgin Islands and the Cayman Islands have recieved illegitimate money flows, disinformation which is going unchallenged by G20.
Under pressure from European heads of state to adopt the automatic exchange of banking information with the rest of Europe, Austrian Finance Minister Maria Fekter sought to deflect scrutiny of the nation's banking secrecy laws by pointing out that, in her opinion, the group of twenty nations had failed to challenge the BVI and Cayman Islands, which she claimed in the past had facilitated money laundering activity.
Denouncing the comments, Travers who is also Managing Partner at law firm Travers Thorp Alberga, stated: "I am deeply troubled that the meritless attacks on the Overseas Territories by Austria's Finance Minister Fekter appear to be gaining traction. Furthermore there seems to be no contrary assertion from the UK Government and the British Chancellor Geroge Osborne as to the true position...this is an attack based on mischaracterization."
" A cursory review of the publicly available statistics under the European Saving Directive which established fully transparent proactive tax reporting shows bank deposits in Cayman of EU residents of a statistically irrelevant USD 25m."
Travers argued that : " The correct answer to Fekter should have been that the Overseas Territories already demonstrate full tax transparency. Given that the UK tax authority HM Revenue and Customs has full treaty access to Cayman accounts for UK tax purposes, the provisions of FATCA are simply duplicative, wholly unnecessary and will raise no additional revenue."
" I can speak with authority on the Cayman situation but it has not escaped my notice that Chancellor Geroge Osborne has also attacked our friends in British Virgin Islands which has similar tax transparency with the UK and the USA."
" He should know that the BVI has an extensive network of some twenty one tax information exchange agreements providing for complete tax transparency notably to HMRC and the IRS; that they are conluding the FATCA negotiation with the UK, and the US, and that they are considering moving to proactive reporting with the EU under the Directive."
" Cayman (and BVI and Bermuda) regard tax evasion as firmly off the table and yet we are continually labeled tax havens, a term that has become synonymous with illegality and wrongdoing," he continued.
" Our measures in Cayman far exceed the tax transparency available in Austria (and many other places including the US) and yet we find no rebuttal from Chancellor Osborne, rather the contrary."
Concluding, Travers stated : " One can only gaze in awe at the misinformation being promoted by a UK chancellor and wonder why he appears willing to assist the French and Germans in their avowed quest to irretrievably damage The City of London's global dominance."
Wednesday, April 17, 2013
Monday, April 15, 2013
Israeli finance minister set to raise deficit target
www.bethelfinance.com
JERUSALEM, April 14 — Israeli Finance Minister Yair Lapid is proposing to raise the 2013 deficit target from 3 to 4.2 percent of Gross Domestic Product, TheMarker economic daily reported Sunday.
The move comes as part of the minister’s plan to combat the growing deficit which has reached 11 billion U.S. dollars.
Lapid also proposed raising the target for the 2014 budget from 2.75 percent to 3.5 percent of GDP. The current deficit targets for 2013 and 2014 were already raised last year by ex-Finance Minister Yuval Steinitz.
Lapid’s move was objected by the Bank of Israel (BoI) outgoing governor Stanley Fischer, who charges that it would lower Israel’s credit and might spell financial difficulties to Israel along the road.
On Thursday, Lapid met with Prime Minister Benjamin Netanyahu to discuss the upcoming 2013-14 budget, which must be passed by June 9 by both the Israeli cabinet and the parliament. According to the proposal to Netanyahu, the budget would be cut by 4 billion dollars in 2013 and by 1.7 billion dollars in 2014.
The cuts would include reducing the allowances for children ( families with multiple children) by 0.42 billion dollars and across-the-board cuts in ministries’ spending, for example, a 1.12- billion-dollar cut in the defense ministry’s budget.
Moreover, Lapid’s chambers announced Thursday that the minister was trying not to hurt the working men and the middle class and said he would increase taxes for the rich, specifically those owning luxury homes and cars.
However, economy experts called the move populist, saying it would only yield 141 million dollars, tenth of the amount needed to cover the deficit.
Talks between the finance ministry and the prime minister’s office will resume on Sunday to discuss possible alternatives to the formation of the budget. The government must vote in favor of the budget by May 5 and then it will be voted in the parliament.
Friday, April 12, 2013
BVI slams leaks as 'illicit'
www.bethelfinance.com/rm
ROAD TOWN, BVI -- The government of the British Virgin Islands has called an investigation by the International Consortium of Investigative Journalists (ICIJ) into the British overseas territory "illicit" and is investigating how the group obtained information on BVI companies.
According to BVI Premier and Finance Minister Dr Orlando Smith, the BVI authorities are actively investigating how this private information has been illicitly obtained and used to attack the BVI financial services industry, which operates compliantly within international guidelines and the law, the South China Morning Post reported.
The names of thousands of owners of secret offshore companies are currently being published by the Washington-based International Consortium of Investigative Journalists (ICIJ), in collaboration with the Guardian newspaper and other international media.
This follows the leak to ICIJ of a hard drive containing 200GB of internal files of offshore incorporation agencies in the BVI, Singapore and the Cook Islands.
In one of the biggest information leaks in history, more than two million documents naming many individuals and detailing their financial dealings through offshore accounts were made available to the US-based ICIJ.
The group has been making public bits of the information it has obtained, which has sparked worldwide reaction from governments and politicians.
Britain’s prime minister David Cameron has come under pressure to act against the secretive offshore industry at June's G8 summit, as leaked evidence continued to mount that politicians and tycoons from all over the world have used the BVI to hide funds.
A senior Liberal Democrat said the leaks showed the secret haven of the BVI "stains the face of Britain", as anti-corruption campaigners called for action.
"How can David Cameron keep a straight face calling for the G8 to make big business pay tax when we let the BVI use British law and British protection to suck in billions in dirty money?" said Lord Oakeshott, a former Treasury spokesman.
Robert Palmer of the campaign group Global Witness repeated the call for Cameron to act, saying, "The massive cache of leaked documents demonstrates how hidden ownership of shell companies facilitates corruption, tax dodging and other crimes."
On Tuesday, the European Commission announced an action plan to combat tax fraud and evasion. Britain, France, Germany, Italy and Spain agreed to co-operate on a pilot information exchange system to catch tax dodgers.
French President Francois Hollande has called for the eradication of tax havens and ordered French banks to declare all their subsidiaries, the BBC reported. He said his government would set up a central agency to fight fraud and corruption.
Smith said the leak was an isolated incident. "There is no indication of contagion or that the breach was systemic. Also, no breach of BVI official databases has occurred," he said.
Smith said in his statement: "While the overwhelming majority of persons use international financial centres for legitimate purposes, there are those that will abuse the system. Where wrongdoing is discovered, appropriate enforcement action is and will be taken. We continually review our legislative regime to ensure transparency, co-operation and compliance with international standards."
The BVI recently announced its commitment to concluding Foreign Account Tax Compliance Act negotiations with the US Treasury and entering a similar arrangement with Britain.
ROAD TOWN, BVI -- The government of the British Virgin Islands has called an investigation by the International Consortium of Investigative Journalists (ICIJ) into the British overseas territory "illicit" and is investigating how the group obtained information on BVI companies.
According to BVI Premier and Finance Minister Dr Orlando Smith, the BVI authorities are actively investigating how this private information has been illicitly obtained and used to attack the BVI financial services industry, which operates compliantly within international guidelines and the law, the South China Morning Post reported.
The names of thousands of owners of secret offshore companies are currently being published by the Washington-based International Consortium of Investigative Journalists (ICIJ), in collaboration with the Guardian newspaper and other international media.
This follows the leak to ICIJ of a hard drive containing 200GB of internal files of offshore incorporation agencies in the BVI, Singapore and the Cook Islands.
In one of the biggest information leaks in history, more than two million documents naming many individuals and detailing their financial dealings through offshore accounts were made available to the US-based ICIJ.
The group has been making public bits of the information it has obtained, which has sparked worldwide reaction from governments and politicians.
Britain’s prime minister David Cameron has come under pressure to act against the secretive offshore industry at June's G8 summit, as leaked evidence continued to mount that politicians and tycoons from all over the world have used the BVI to hide funds.
A senior Liberal Democrat said the leaks showed the secret haven of the BVI "stains the face of Britain", as anti-corruption campaigners called for action.
"How can David Cameron keep a straight face calling for the G8 to make big business pay tax when we let the BVI use British law and British protection to suck in billions in dirty money?" said Lord Oakeshott, a former Treasury spokesman.
Robert Palmer of the campaign group Global Witness repeated the call for Cameron to act, saying, "The massive cache of leaked documents demonstrates how hidden ownership of shell companies facilitates corruption, tax dodging and other crimes."
On Tuesday, the European Commission announced an action plan to combat tax fraud and evasion. Britain, France, Germany, Italy and Spain agreed to co-operate on a pilot information exchange system to catch tax dodgers.
French President Francois Hollande has called for the eradication of tax havens and ordered French banks to declare all their subsidiaries, the BBC reported. He said his government would set up a central agency to fight fraud and corruption.
Smith said the leak was an isolated incident. "There is no indication of contagion or that the breach was systemic. Also, no breach of BVI official databases has occurred," he said.
Smith said in his statement: "While the overwhelming majority of persons use international financial centres for legitimate purposes, there are those that will abuse the system. Where wrongdoing is discovered, appropriate enforcement action is and will be taken. We continually review our legislative regime to ensure transparency, co-operation and compliance with international standards."
The BVI recently announced its commitment to concluding Foreign Account Tax Compliance Act negotiations with the US Treasury and entering a similar arrangement with Britain.
Grenada and Barbados prime ministers discuss regional issues
www.bethelfinance.com
ST GEORGE'S, Grenada - Grenada's Prime Minister Dr Keith Mitchell met on Wednesday in Bridgetown with his Barbadian counterpart Freundel Stuart, where they discussed issues on the regional agenda for the upcoming CARICOM heads of government summit in Trinidad this July.
It was the first meeting between the two since they were elected in general elections in their respective countries in February.
Mitchell was in Barbados on Wednesday to present the annual David Thompson Lecture at the Cave Hill Campus of the University of the West Indies.
He was due to speak on the issue of science and technology, as Grenada resumes its lead role on the issue among CARICOM states.
The lecture series is held in the name of the late Barbadian leader, whom Stuart succeeded after he succumbed to cancer while in office in 2010.
Mitchell was due to deliver the lecture at 7 pm, but scheduled a series of meetings following his arrival in Bridgetown on Wednesday morning, including one with Stuart.
Key among issues discussed between the two leaders were regional integration, as it relates to the OECS countries; the overall financial situation in the region, including a resolution on the situation with CLICO Financial -- the former giant, but now-liquidated financial conglomerate based in Trinidad.
As has been his mantra since assuming office, Mitchell again pledged to engage aggressively with regional stakeholders including governments, social and private sectors in resolving the fiscal crisis.
ST GEORGE'S, Grenada - Grenada's Prime Minister Dr Keith Mitchell met on Wednesday in Bridgetown with his Barbadian counterpart Freundel Stuart, where they discussed issues on the regional agenda for the upcoming CARICOM heads of government summit in Trinidad this July.
It was the first meeting between the two since they were elected in general elections in their respective countries in February.
Mitchell was in Barbados on Wednesday to present the annual David Thompson Lecture at the Cave Hill Campus of the University of the West Indies.
He was due to speak on the issue of science and technology, as Grenada resumes its lead role on the issue among CARICOM states.
The lecture series is held in the name of the late Barbadian leader, whom Stuart succeeded after he succumbed to cancer while in office in 2010.
Mitchell was due to deliver the lecture at 7 pm, but scheduled a series of meetings following his arrival in Bridgetown on Wednesday morning, including one with Stuart.
Key among issues discussed between the two leaders were regional integration, as it relates to the OECS countries; the overall financial situation in the region, including a resolution on the situation with CLICO Financial -- the former giant, but now-liquidated financial conglomerate based in Trinidad.
As has been his mantra since assuming office, Mitchell again pledged to engage aggressively with regional stakeholders including governments, social and private sectors in resolving the fiscal crisis.
Thursday, April 11, 2013
Jersey Financial Sector Vacancies On The Rise
www.bethelfinance.com/rm
Jersey Finance has noted the most recent findings of Jersey's Labour Market Survey, which reveals that around a quarter of total current private sector vacancies in Jersey are in the finance sector, despite more than 2,000 people reportedly still seeking work.
While the results of the Survey suggest a gap between skills and vacancies, the finance industry remains Jersey's biggest employer, with the number of job opportunities available within the industry providing a positive indication of its strength and growth potential.
Jersey Finance has a well-established Education Programme. With a remit to address current and future gaps in the skillset of Jersey's financial services workforce, Jersey Finance regularly assists with training support of the unemployed, helps coordinate industry input into a locally delivered degree in financial services and organises a comprehensive financial services education programme for schools.
As well as working closely with Careers Jersey, Skills Jersey, Highlands College and the Jersey International Business School, Jersey Finance also receives a significant and growing amount of engagement from member firms. In March this year, Jersey Finance in partnership with Back to Work run and induction day for their Advanced Admin/Finance scheme where ten member firms took part in hosting organisational tours, running sector talks and mock interviews. In additions, a new report on the future of Jersey's finance industry will provide further direction on the long-term importance of education and training to support an evolving financial services sector. Skills Jersey are also planning to work in partnership with Jersey Finance to carry out a finance industry skills survey in 2013.
Geoff Cook, CEO Jersey Finance said:
"It's a challenging environment for all businesses in terms of job creation, so the fact that there are a number of vacancies currently available within the finance industry should be seen as an opportunity by keen job seekers who have the right attitude and who are prepared to learn new skills. In fact, the anecdotal evidence from firms is that in terms of jobs available, the landscape is very positive, with a broad range of junior and experienced roles on offer.
The expertise and specialist skills of its workforce have long been the foundation of Jersey's finance industry and this will continue to be the case. With many firms having re-structured their operations as a result of the financial downturn, there is now a collaborative focus from government and the industry, particularly on school leavers and graduates, to ensure the next generation has the right skills for an evolving industry.
The links the finance industry have developed with government bodies regarding initiatives such as Advance to work and Advance Plus as well as programmes developed with educational organisations are proving particularly invaluable in offering appropriate training and helping to up-skill the local workforce."
Jersey Finance has noted the most recent findings of Jersey's Labour Market Survey, which reveals that around a quarter of total current private sector vacancies in Jersey are in the finance sector, despite more than 2,000 people reportedly still seeking work.
While the results of the Survey suggest a gap between skills and vacancies, the finance industry remains Jersey's biggest employer, with the number of job opportunities available within the industry providing a positive indication of its strength and growth potential.
Jersey Finance has a well-established Education Programme. With a remit to address current and future gaps in the skillset of Jersey's financial services workforce, Jersey Finance regularly assists with training support of the unemployed, helps coordinate industry input into a locally delivered degree in financial services and organises a comprehensive financial services education programme for schools.
As well as working closely with Careers Jersey, Skills Jersey, Highlands College and the Jersey International Business School, Jersey Finance also receives a significant and growing amount of engagement from member firms. In March this year, Jersey Finance in partnership with Back to Work run and induction day for their Advanced Admin/Finance scheme where ten member firms took part in hosting organisational tours, running sector talks and mock interviews. In additions, a new report on the future of Jersey's finance industry will provide further direction on the long-term importance of education and training to support an evolving financial services sector. Skills Jersey are also planning to work in partnership with Jersey Finance to carry out a finance industry skills survey in 2013.
Geoff Cook, CEO Jersey Finance said:
"It's a challenging environment for all businesses in terms of job creation, so the fact that there are a number of vacancies currently available within the finance industry should be seen as an opportunity by keen job seekers who have the right attitude and who are prepared to learn new skills. In fact, the anecdotal evidence from firms is that in terms of jobs available, the landscape is very positive, with a broad range of junior and experienced roles on offer.
The expertise and specialist skills of its workforce have long been the foundation of Jersey's finance industry and this will continue to be the case. With many firms having re-structured their operations as a result of the financial downturn, there is now a collaborative focus from government and the industry, particularly on school leavers and graduates, to ensure the next generation has the right skills for an evolving industry.
The links the finance industry have developed with government bodies regarding initiatives such as Advance to work and Advance Plus as well as programmes developed with educational organisations are proving particularly invaluable in offering appropriate training and helping to up-skill the local workforce."
Wednesday, April 10, 2013
Positive 2012 For Manx Shipping Registry
www.bethelfinance.com
The Manx Shipping Registry continued to thrive in 2012, finishing the year on a new high of 15 million Gross Registered Tonnes, an increase of over 8% year-on-year, according to its annual report.
The Isle of Man is home to one of the world's fastest growing registries, averaging tonnage growth of 11% over the past few years. Although the total number of ships on the register has remained relatively static for the past few years, at approximately 1,050, the workload for registrars has increased significantly, dealing with around 10 new registrations each month, and various other filings.
The Registry has seen significant growth from Asia in particular. Since 2009, more than 20 vessels operated from Singapore have registered under the Isle of Man ensign, representing around 12% of Manx Gross Registered Tonnes (1.7m). Recognizing Singapore as a strategic location for the Registry, in April of 2012 the Isle of Man established a representative office in Singapore, and exhibited for the second time at the Singapore Yacht Show, as well as events in China and Japan.
Other key highlights for the Registry in 2012 included that it retained its important ISO 9001/2008 accreditation with flying colours in November. The Registry hit all is quality targets in respect of the fleet performance during the year, maintaining white list positions on the Paris and Tokyo memoranda of understanding for Port State Control, and its accreditation under the United States' Coast Guard's Qualship 21 program which recognizes "quality" states.
The International Chamber of Shipping's Flag State Performance Table for 2012 recognized the Isle of Man as continuing to have positive indicators in all categories, positioning it as one of twelve flag states, of a total of 111, to have achieved a "clean sheet."
For the Registry, 2012 saw the final steps taken to achieve compliance with the Maritime Labour Convention 2008. The Registry announced that it is now close to concluding the necessary legislative amendments to the island's regime to have an appropriate regulatory framework in place when the Convention enters into force in August 2013.
By the end of 2012 the Registry had carried out 10 Maritime Labour Convention inspections on Isle of Man registered vessels and most of the Ship Registry's office-based surveyors are now qualified to carry out Maritime Labour Convention inspections. The Registry has acknowledged that with 530 Maritime Labour Convention inspections yet to be completed, 2013 is shaping up to be a busy year both for shipowners and Isle of Man surveyors.
The Manx Shipping Registry continued to thrive in 2012, finishing the year on a new high of 15 million Gross Registered Tonnes, an increase of over 8% year-on-year, according to its annual report.
The Isle of Man is home to one of the world's fastest growing registries, averaging tonnage growth of 11% over the past few years. Although the total number of ships on the register has remained relatively static for the past few years, at approximately 1,050, the workload for registrars has increased significantly, dealing with around 10 new registrations each month, and various other filings.
The Registry has seen significant growth from Asia in particular. Since 2009, more than 20 vessels operated from Singapore have registered under the Isle of Man ensign, representing around 12% of Manx Gross Registered Tonnes (1.7m). Recognizing Singapore as a strategic location for the Registry, in April of 2012 the Isle of Man established a representative office in Singapore, and exhibited for the second time at the Singapore Yacht Show, as well as events in China and Japan.
Other key highlights for the Registry in 2012 included that it retained its important ISO 9001/2008 accreditation with flying colours in November. The Registry hit all is quality targets in respect of the fleet performance during the year, maintaining white list positions on the Paris and Tokyo memoranda of understanding for Port State Control, and its accreditation under the United States' Coast Guard's Qualship 21 program which recognizes "quality" states.
The International Chamber of Shipping's Flag State Performance Table for 2012 recognized the Isle of Man as continuing to have positive indicators in all categories, positioning it as one of twelve flag states, of a total of 111, to have achieved a "clean sheet."
For the Registry, 2012 saw the final steps taken to achieve compliance with the Maritime Labour Convention 2008. The Registry announced that it is now close to concluding the necessary legislative amendments to the island's regime to have an appropriate regulatory framework in place when the Convention enters into force in August 2013.
By the end of 2012 the Registry had carried out 10 Maritime Labour Convention inspections on Isle of Man registered vessels and most of the Ship Registry's office-based surveyors are now qualified to carry out Maritime Labour Convention inspections. The Registry has acknowledged that with 530 Maritime Labour Convention inspections yet to be completed, 2013 is shaping up to be a busy year both for shipowners and Isle of Man surveyors.
Monday, April 8, 2013
Israel to Return to One-Year State Budgeting
www.bethelfinance.com/rm
Israel will abandon the two-year budget format initiated by the previous government and return to one-year planning for spending, Finance Minister Yair Lapid announced today.
The next budget will cover a 17-month transitional period from mid-2013 through 2014 after parliamentary elections delayed the current proposal, Lapid said in a statement today.
Lapid, appointed finance minister three weeks ago after the Yesh Atid party he founded unexpectedly came in second in January’s election, must cut billions of shekels from government-promised funding to reduce the deficit to less than 3 percent of gross domestic product. The Bank of Israel is forecasting the deficit at 3.6 percent of GDP for this year.
“The considerable gap between two-year forecasts and actual government revenue led the economy to the deep overdraft that we are currently facing,” Lapid said. “Building a one- year work plan will narrow the margin of error between forecasts and actual revenue.”
Yael Andorn, a former deputy budget director, will serve as director general of the Finance Ministry, Nilly Richman, a spokeswoman for Lapid, said by telephone today. Andorn will be the ministry’s first female director general in the country’s 65-year history.
The two-year budget format was initiated for 2009 and 2010 by former Finance Minister Yuval Steinitz. Steinitz, who is currently serving as Minister of International Relations, said the two-year format was more efficient and allowed the government time to work on other issues besides spending allocations and taxes.
Israel will abandon the two-year budget format initiated by the previous government and return to one-year planning for spending, Finance Minister Yair Lapid announced today.
The next budget will cover a 17-month transitional period from mid-2013 through 2014 after parliamentary elections delayed the current proposal, Lapid said in a statement today.
Lapid, appointed finance minister three weeks ago after the Yesh Atid party he founded unexpectedly came in second in January’s election, must cut billions of shekels from government-promised funding to reduce the deficit to less than 3 percent of gross domestic product. The Bank of Israel is forecasting the deficit at 3.6 percent of GDP for this year.
“The considerable gap between two-year forecasts and actual government revenue led the economy to the deep overdraft that we are currently facing,” Lapid said. “Building a one- year work plan will narrow the margin of error between forecasts and actual revenue.”
Yael Andorn, a former deputy budget director, will serve as director general of the Finance Ministry, Nilly Richman, a spokeswoman for Lapid, said by telephone today. Andorn will be the ministry’s first female director general in the country’s 65-year history.
The two-year budget format was initiated for 2009 and 2010 by former Finance Minister Yuval Steinitz. Steinitz, who is currently serving as Minister of International Relations, said the two-year format was more efficient and allowed the government time to work on other issues besides spending allocations and taxes.
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