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Barry's Blog - Playing on some of the World’s Trillion Dollar Gaming Boards

 

“When Opportunity knocks, open the door post haste – unless your name is Barry Spitz, in which case, Opportunity knocks the door down.”

Financial Times
 

Playing on some of the World’s Trillion Dollar Gaming Boards

Again and again in the course of my professional career, I find that whatever I plan and whatever I expect, something else happens. Absolutely unplanned, and totally ill-equipped for it, I find myself playing on a number of the world’s trillion-dollar gaming boards.

Indeed, how I become the advisor to international organizations, royal families, heads of state, and ministries of finance in different parts of the globe could hardly have happened in a more unplanned way.

I kick off my career, for a very short period indeed, at the European Commission of Human Rights in Strasbourg. The first file to hit my desk is a complaint against the Belgian government from a dear little old lady, whose French name will forever remain confidential, and who alleges that the Flemish postman threw a pot of urine into her face. I need no more convincing that I am in the wrong place.

My little stint in Strasbourg is followed many years later by a very different bit part when I return to Strasbourg to find myself momentarily chairing the European Parliament. This time round I need no more convincing that I am in the right place.

More useful in leading me to my preferred path was a blessed meeting at the Peace Palace in The Hague, with Lord McNair, President of The Hague International Court. This gracious luminary becomes my mentor in a vast research project that takes about ten years to complete, by which time I have an entrée into the world of international organizations and foreign governments.

A consultancy to the International Bureau of Fiscal Documentation in Amsterdam opens the wide portal and leads to me being considered the right man to set up new financial and administrative centers that focus on the processing trillions of dollars of investment money. My training briefs start with Malta, Malaysia, Jamaica and most of the Southern African mini-states, before moving on to the major administrative centers.

Other foreign government projects follow. There is advising the US Congress and the IRS. Later there is the experience of working on the US shipping rights of six Arab countries including Iraq and Saudi Arabia, thanks to the United Arab Shipping Company.

But the best of everything is access to the Grand Slam center courts, thanks to the International Tennis Federation following on a modest bit of work with their legal advisor.

Tax Planning Tips thanks to typical British Ingenuity

Lady Godiva stark naked on her white horse always remains an intriguing figure (pardon the double meaning). Please recall that Lady Godiva’s husband, Leofric Earl of Mercia, promises to remit the oppressive taxes that he has imposed on the inhabitants of Coventry if she will ride naked through the streets at noon. Lady Godiva duly directs the people to keep within doors and shut their windows. Then, accompanied by two stalwart soldiers, she undertakes the ride with only her hair covering her body. On her return Leofric issues a charter freeing the city of Coventry “from servitude.” Leofric’s payoff does not lie in indulging a penchant for vicarious exhibitionism. On the contrary, he uses the incident to head off a dangerous tax revolt led by his own good lady.

A few centuries later the inhabitants, not merely of Coventry, but of most of the British Isles, proceed to brick up their windows altogether. The object of this exercise is not to keep out the noonday sight of naked ladies roaming the streets on white horses, but simply to avoid having to pay the window tax.

“Not only has Dr Spitz never lost an international tax case – no plan he has constructed has ever been challenged” - Offshore Investment
 

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Choice of Law in International Tax Planning

Choice of law is a conflict of laws (private international law) issue, and the rules are part of the domestic law of each country. Choice of law problems frequently arise with respect to entities that are not known to, or do not enjoy legal personality in, a foreign system. The determination of the applicable law for the purpose of characterising such entities varies from one legal system to another, a point to be watched in the design of an international tax plan.
 

Offshore Purchase and Sales Companies

Where opportunities arise to purchase a single item for resale at a substantial profit, a company in a tax haven or international offshore financial center (IOFC) could be used to take the profit (e.g. purchase of liquidation goods, etc.). A similar structure could be used for a bulk purchase of goods for subsequent on¬-sale in smaller lots. Substantial discounts may be obtained by purchasing in bulk from third parties for onward sale to group companies or third parties. An offshore purchase and sales company may, for these reasons, be included in an international tax plan.
 

Treaty Shopping

Treaty shopping is the use of a tax treaty, for international tax planning purposes, by a person resident in a country that is not a party to the treaty.
 
 
 
 
 
 
 
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