Foreign Registrants and Applicants If my firm is not based in the United States, what requirements does it have? Foreign entities that transact business with U.S. customers in the capacity of an FCM, IB, CTA or CPO are generally required to register in the appropriate category. Foreign entities must meet the same filing requirements as domestic applicants. In addition each foreign entity that files an electronic Form 7-R agrees to make its books and records available for inspection by NFA and the CFTC. Foreign entities that transact business directly with U.S. customers solely in futures contracts and commodity options traded on foreign exchanges are exempt from registration if: (a) it is an FCM subject to a comparable regulatory structure by a foreign regulator which has been granted an exemption by the CFTC or an IB, CPO, or CTA without a U.S. office; and (b) it has filed a request for exemptive relief and an agreement with NFA appointing an authorized U.S. agent for service of process for communications in connection with activities that would otherwise require registration. IBs, CPOs and CTAs request exemption relief by filing a Form 7-R. -------------------------------------------------------------------------------- If you have any other questions, contact NFA's Information Center at (800) 621-3570 or (312) 781-1410 or e-mail NFA.
Examples? I gave one on the other page... but you need to manage a fund with no controlling US interests and no personal investments. You're not able to NOT pay taxes, but you can defer them by deferring your fees, compounding them. Which is great... if you're a fund mgr. I know of no other legal ways, would love to hear them. The reason is because roth's allow a max 5k contribution/yr. People considering offshore are looking to minimize/defer much more than that.
nope, illegal. you have to be a resident there. the IRS recently busted a bunch of NYC residents doing exactly that.
USVI corps pay to the USVI instead of the USA. This is one of the only places in the World where a Yank pays income tax to the territory instead of the IRS. Yes, the rates are pretty much the same on purpose, unless you employ 10 locals or more, then you can be setup to pay a 10% rate. The details are complicated and expensive, but the hedgie I spoke with said you don't actually have to employ said people, but provide some other assorted service. I decided to punt on the idea at this point. I was told to consult a USVI tax attorney regardless. Note: you have to LIVE there as well. physical residence is a requirement.
Ok, thanks for the info. Do you remember about how much expensive was at? I've heard around 50k or so plus recurring legal (maybe 25k), but never personally been quoted.
Well, fuck that. Paradise is nice to visit, but I'm not moving somewhere that has only one season. If it costs me physical comfort to keep more of my earnings, I'd rather spend more and stay comfy.
I did a project on coordinating inter-departmental cooperation for detecting money laundering - including my home country central bank, police, taxation department, customs etc - it was back in 1995 after a EU legislation framework came into action. (Directive after the 1995 Convention on the Protection of the Financial Interests of the European Community) Since then a lot of new legislation has been added, significant additions as late as from January 2008 even... I would advice you to "know the various legislations" - and more importantly the "intention of the laws" so that you understand fully what you are doing. See OECD, G-7, the UN etc and their cooperation in financial surveillance. http://www.fatf-gafi.org/ http://www.oecdobserver.org/news/ca...on_Task_Force_on_Money_Laundering_(FATF).html http://ec.europa.eu/justice_home/fsj/crime/laundering/fsj_crime_laundering_en.htm And there are more links - just you know what you are looking for. A good advice is to be proactive in validating the status of your actions as legitimate, and not staying passive. For Caribbean taxation and the IRS - see the story of Vince Cate and Anguilla. It is not trivial, and this was a number of years ago.
Ok, so apparently the deferral of fees method has now been taken off the table. Apparently snuck in, in the recent bailout bill: http://www.ropesgray.com/congress_blocks_offshore_hedge_fund_deferrals/