Tag Archive | "abarza@coxnici.com"

Ecuador & Bank Privacy


Bank privacy no longer exists. Some years ago I wrote about the insidious tactics that the US and other governments have used to erode financial privacy and personal liberty and pointed out that the problem is that the government does not attack the individual but puts the pressure on the overseas financial institutions. The current additional move by the US government to collect tax is just one more small step.

The quote above might make it seem like I was years ahead of the curve writing about the loss of privacy some years ago.

Actually I was way ahead of the curve because that quote comes from one of the earlier articles posted at this site on July  13, 2000. See that July 2000 article.

However,  may I remind you that the sunshine not only always shines somewhere, it always rises everywhere… every day!

Yesterday’s message looked at Ecuador sunrises and sunsets.

The sun also rises here in the USA.  I took these shots at our farm and…

ecuador-sunrise

and near the farm on the way to the Farmer’s Market.

ecuador-sunset

Glorious.

We live in a quantum world.  Those earthly laws that Newton so accurately described really do seem to work with apples… yet science suggests that our world is not so predictable… every moment… every place contains infinite potentiality for change… something different… something new… something good… or bad.

There are wonderful aspects of living in most places. This is why Merri and I live in Florida, the Blue Ridge and Ecuador.

This is why I have been warning readers since the 1980s to never… ever… hide wealth.  Use legal means of attaining privacy.

These warnings have related mostly to Americans, British and Germans.  These have been the most determined and aggressive taxing authorities.

These warnings have been is a good thing too.  Here is one reason why.

A June 17, 2009 New York Times article entitled E-Mail Surveillance Renews Concerns in Congress shows even deeper concern, explains how bank privacy is really dead.   An excerpt from this article (a link to the entire article is at the end of this message) says:.

The National Security Agency is facing renewed scrutiny over the extent of its domestic surveillance program, with critics in Congress saying its recent intercepts of the private telephone calls and e-mail messages of Americans are broader than previously acknowledged, current and former officials said.

The agency’s monitoring of domestic e-mail messages, in particular, has posed longstanding legal and logistical difficulties, the officials said.

Since April, when it was disclosed that the intercepts of some private communications of Americans went beyond legal limits in late 2008 and early 2009, several Congressional committees have been investigating. Those inquiries have led to concerns in Congress about the agency’s ability to collect and read domestic e-mail messages of Americans on a widespread basis, officials said. Supporting that conclusion is the account of a former N.S.A. analyst who, in a series of interviews, described being trained in 2005 for a program in which the agency routinely examined large volumes of Americans’ e-mail messages without court warrants. Two intelligence officials confirmed that the program was still in operation.

In short not only is bank privacy dead… privacy is dead… morte… gone…finito.

These warnings seem to include Ecuador as well.

Two recent messages, one Ecuador & Banking about new Ecuador financial reporting regulations, and the other Ecuador & Social Security US Social Security regulations relating to those who live and work abroad.

These messages evoked a number of responses from readers asking “How would Ecuador’s tax man know what wealth I have abroad?” and  “How would the Social Security administration know  if I earn in Ecuador?”

My reply is “I do not know how they would know… but I do not do it and do not recommend this because one never knows what will happen!”

There are so many ways the future could be revealed us… but let me give you a clue of just one example where someone hiding wealth could be caught.

My last two Ecuador Living updates outlined details about Ecuador Bank ATM fraud where over 40 people had their accounts cleaned out and how the Ecuador banks immediately made the losses good.   See these updates as an Ecuador Living subscriber.

If there was a cooperation between US and Ecuador authorities investigating this fraud… details of earnings in Ecuador could end up in the US (including SS admin) and details of US wealth could end up in the hands of Ecuador authorities.

We are in a new era of privacy that I have watched unfold during 41 years of doing international investing and business.   Half a decade ago, this site sent this warning in an article The Ultimate Form of Financial Privacy

One should not hide money abroad and rely on bank privacy to protect them. Forget about government attacks. These are bad enough but I cannot begin to tell you the horror stories I have crossed in the past three decades in which bank privacy was blown by bank errors. For example, a London bank mistakenly mailed me the secret bank account of an Iranian diplomat who was hiding money in London. A Viennese banker inadvertently faxed me four pages of private information that could have put several people in serious trouble.  Even a Swiss banker once left his client list with names, addressees and account numbers laying on a table at a seminar were I was speaking with him!

In addition to the onslaught of governments to reduce privacy, there are just too many ways for your wealth to be revealed to use secrecy as a wealth protection tool.

Look for legal ways to keep your financial affairs private instead.

This is why, our friend and attorney, Joe Cox,  joined me and Jyske Global Asset Management (JGAM)  at the recent International Investment Seminar in Naples  Florida.

bank-privacy

Last month Merri and I co-hosted this  seminar with JGAM. Here is Thomas Fischer opening the seminar.

This is why Ecuador’s new financial reporting law and why the overseas Social Security regulations do not bother me much. This is just one more issue to deal with in an increasingly crowded and complicated world.

So let me reiterate what I have been writing for decades.

Bank privacy is dead.  Do not try to hide money.  Use as many legal tactics as you can to preserve your wealth…always keep it legal. This is a never ending game and the opponent… taxation authorities play hardball and they play rough.

Here are three valuable contacts who can help you maintain legal bank privacy.

Joe Cox, our friend and US attorney.

Floridalva Zambrano, our friend and Ecuador attorney.

Thomas Fischer, our friend and overseas banker.

You can get more information direct:

Joe Cox: jcox@coxnici.com

Copy Joe Cox’s  assistant April Barza to arrange a free conference call. abarza@coxnici.com

Floridavla Zambrano: FLORIFLORI58@YAHOO.ES

Thomas Fischer: fischer@jgam.com

Non US residents contact Reny Mathys instead of Thomas Fischer: mathys@jbpb.dk

These contacts know of each other and can help you create a coordinated plan between US Ecuadorian and international banking laws that maintains legal privacy and asset protection.

Plus keep your perspective. The sun shines somewhere everyday. It is the sun we should seek… not to avoid the clouds.

Merri and I love our life in the Blue Ridge… the rushing streams and…

ecuador-banks

the spring flowers peeking into our kitchen.

ecuador-banks

The greatest benefits to living globally  are broadened horizons… larger families, expanded experiences… deeper awareness of the infinite ways that beauty in life can unfold… not tax or privacy benefits.

We love our life in Florida here is a view from one of the houses in our house buying trip.

ecuador-banks

Plus we love our Andean family at Meson… everyone of them.

ecuador-banks

and the majestic mountain views from our condo there.

ecuador-banks

And we love walking Ecuador’s broad beach at our Pamazul apartment

ecuador-banks

We take any tax and asset protection our lifestyle brings, but the lifestyle is driven by the seeking of joy and wonderful living. The financial aspects follow.

One gains greater economic opportunity with global investing and business… bigger markets.. more distortions to see… additional trends to emerge.

Don’t diminish all the beautiful  sunshine with clouds of financial worry.

Regards,

Gary

We hope you’ll enjoy a beautiful global lifestyle with us soon in the Blue Ridge or Ecuador.

July 4-8 Ecuador Export Tour

July 8-9 Imbabura Real Estate Tour
July 10-13 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

July 24-26 IBEZ North Carolina

Sept. 17-21 Ecuador Spanish Course
Sept. 23-24 Imbabura Real Estate Tour
Sept. 25-28 Ecuador Coastal Real Estate Tour

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

Nov. 6-8 IBEZ Ecuador
Nov. 9-10 Imbabura Real Estate Tour
Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

Read the New York Times article: E-Mail Surveillance Renews Concerns in Congress shows even deeper concern, at http://www.nytimes.com/2009/06/17/us/17nsa.html

Ecuador & Social Security


There are some Ecuador reporting rules & global Social Security wrinkles you should know.

There are some great reports being sent to Ecuador Living subscribers after our trip last week to Cotacachi.

For example one report tells of this organic tomato farm for sale that is producing $25,000 a year income.

Ecuador-social-security

Another looks at 15 new condos like this being built on a small river in Cotacachi.

Ecuador-social-security

Yet another reviews our trek on this fantastic lake.

Ecuador-social-security

One report I already sent to Ecuador Living subscribers last week provides a warning (and solution) about a new Ecuador financial reporting regulation and a Social Security wrinkle for any American who plans to live abroad.  An excerpt from that report explains why this is important information to know.

I am working with tax attorneys in Ecuador and the US because there is a new Ecuador wealth reporting law that requires residents or those staying in Ecuador over 183 days a year to report all wealth and assets (everywhere in the world) once a year.

This new financial reporting law requires all Ecuadorian residents with assets above $200,000, ($400,000 as a couple) to report their wealth.

This report requires an itemized list and valuation of financial accounts and personal property owned anywhere in the world every year six months after the end of the year.

Even those who do not have this wealth can be asked to submit a report showing what wealth they do have and they can be fined if this report not presented.

Here is what our Ecuador tax attorney, Floridalva Zambrano, has replied:

The whole issue about “Declaración Patrimonial” has been very confusing as the rules have been changed several times in a short period of time.  The government has mentioned several times that this “Declaración Patrimonial” does not have any tax purposes, that it is only a way of checking the increase in the value of your patrimony from year to year and that it was legally obtained.

Right now this information is available through the municipalities, registries, SRI itself,  bank system, etc, but it is not as useful as it would be if they have it concentrated. Kind regards,  Flori”

For many US residents who plan to move to Ecuador avoiding this report will just add a bit more work to existing tax and asset protection planning.

First of all, one should keep their wealth as confidential as they legally can.

Our US tax attorney Joe Cox wrote:

I am not at all comfortable with reporting to the government of Ecuador or anyone ALL of one’s worldwide holdings.  Even if it is a generic reporting or an overview.  Anyone could then find out what you have and what you are worth. We have no assurance that there are security walls in the tax departments.

There are ways to avoid this report but for Americans planning to live anywhere abroad there is  another concern beyond this Ecuador reporting.   This concern is a US Social Security regulation.

If you are collecting Social Security and live abroad you must report overseas income correctly to Social Security or you can be penalized by a fine or imprisonment.

Plus Social Security recipients can lose Social Security benefits if they work or even own a business (even if they do not work in the business).

The same steps one would take to legally to reduce one’s financial profile (for Ecuador reporting purposes) are also likely to resolve the Social Security concerns at the same time.

If you are living in the US and planning to live in Ecuador prepare in advance.

You can read this entire report as an Ecuador Living subscriber.

Or you can contact our tax attorney Joe Cox.

We expect a lot of inquiries on this and I have asked Joe if he would give our readers a no charge consultation.  Joe has set up a system so his personal assistant can take calls calls and e-mails and schedule a first time no obligation, no fee conference call on the questions about this.

See Joe’s Bio here.

Joe Cox’s email is jcox@coxnici.com

Please copy his personal assistant abarza@coxnici.com

Until next message, good living in Ecuador or wherever!

Gary

Join me and Thomas Fischer from Jyske Global Asset Management in North Carolina to learn more about economic trends and new tax and bamnking regulations.

David Cross our webmaster will also speak to help delegates learn how to have a global internet business.

International Investing and Business Made EZ North Carolina

We’ll have lunch at the farm and enjoy the cool summer mountains. Here’s a shot of our front yard.

investing-green

Thomas Fisher speaking to our delegates at the farm.

seminar-roses

orange-roses

multi-currency-meeting

Delegates enjoying a private conversation with Thomas Fischer during a coffee break at the farm.