AVOIDING DEATH AND TAXES. By Evgeny Orlov Auckland, New Zealand Barrister, BA, LLB, LLM

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1 AVOIDING DEATH AND TAXES By Evgeny Orlov Auckland, New Zealand Barrister, BA, LLB, LLM

EVERYTHING HAS A CYCLE BIRTH YOUTH MIDDLE

THE SIGNS OF A DYING ECONOMY (END CYCLE):

2 EVERYTHING HAS A CYCLE BIRTH YOUTH MIDDLE AGE OLD AGE DEATH. ECONOMIC CYCLE Nikolay D. Kondratiev discovered and studied this law of long (50 year) economic cycles, the so-called Kondratieff waves. THE SIGNS OF A DYING ECONOMY (END CYCLE): greater taxation, wars, unemployment, stock market collapse, human rights violations, poverty, riots etc. Kondratiev believed this was as inevitable as the four seasons of nature.

3 Nikolay Kondratiev ( )

The Roman empire in the last 100 years of its decline demonstrates the significant symptoms of death being l l l l l l l highly irrational taxation hyperinflation printing of ever increasing currency

4 The Roman empire in the last 100 years of its decline demonstrates the significant symptoms of death being l l l l l l l highly irrational taxation hyperinflation printing of ever increasing currency (mixing gold coin with base metals) increasing wars and military spending out of control bureaucracy unemployment and lowering of production which all leads to increasing taxation. The lesson of history teaches us that the larger the empire the greater the effect of its death throes are on the entire world.

5 As Buddha said: All things must change, nothing can stay the same. It was the eagle that punished Prometheus for bringing the knowledge of fire to man. EAGLES IN OLD AGECAN BECOME VULTURES

6 We are in the land of both the eagle and the vulture, so I wish to respect these two powerful birds and suggest nothing ill be spoken of them for always, a man must have respect for the Gods that rule him lest he be thrown down into the dungeons of Hades.

7 Having started with Kondratiev, I wish to speak a little about the general way the cycle operates using some inept examples from modern history (my apologies in advance for historical generalisations and faux pas). DEATH ( ) In the 1930s we had the Great Depression in many countries (some say the great depression was a deliberate attempt to move away from the gold standard).

8 In 1930s we had the rise of Nazi Germany, Italian fascism and Spanish fascism. Hitler based his economic and political ascension to confiscation of Jewish assets in Germany, gold, silver and other assets from Europe. The ultimate taxation by the state was death of the individual. The 1930s saw the rise of Soviet Russia, Stalin s concentration camps and total confiscation of all personal wealth by the state. This culminated in 1940s with general world war, confiscation of bullion throughout Europe and America, seizures of assets, freezing of bank accounts, raiding of art galleries. Rome burned again and Europe was sacked.

BIRTH (1949-1966) The world firmly started to shake off the long two decades of depression and war. Economies of Europe, America, Japan, Soviet Russia and others begin to grow.

9 BIRTH ( ) The world firmly started to shake off the long two decades of depression and war. Economies of Europe, America, Japan, Soviet Russia and others begin to grow. YOUTH ( ) The solid growth and low inflation of the 50s and 60s followed by the commodity / price inflation and recession driven 1970s. Commodity prices peaked in Prosperity in America, Japan, rise of the Euro Union, rise of China.

MIDDLE AGE PLATEAU (1982-2000) Stock market and real estate bubbles, a collapse in commodity prices, a collapse in interest rates and low inflation DEATH (2000?

10 MIDDLE AGE PLATEAU ( ) Stock market and real estate bubbles, a collapse in commodity prices, a collapse in interest rates and low inflation DEATH (2000?) The collapse of the tech market, numerous corporate scandals and debt collapses (NASDAQ, Enron etc). Housing crises in the United States, financial collapse of major bank crises in Europe, wars in the Middle East, Europe, high taxation, arrest of Swiss bankers, beginning of numerous wars.

11 Roughly 50 years. But the death throes are only beginning because the patient is on a respirator by the world s financial systems. Without a crystal ball but looking at Kondratiev s theories we are at the very beginning of an extremely steep death cycle which is being held back by the worlds banking systems.

12 It is possible that there will be: Share market collapses Hyperinflation of currency coupled with deflation of asset classes Massive taxation Rises in cost of living unemployment and riots in big cities of the word Wars

13 FIRST QUESTION: HOW TO AVOID FINACIAL DEATH

First secret is the Concept Of The Five Fingers (The Legacy of

cycles can be predicted in the same way as surfer rides waves:

Eg, Switzerland prospered during the Second World War, or China

14 First secret is the Concept Of The Five Fingers (The Legacy of the Rothschild) Not all countries die at the same time, the cycles can be predicted in the same way as surfer rides waves: whilst Europe dies, Africa, Asia and South America may be rising. Eg, Switzerland prospered during the Second World War, or China did not suffer from the great depression because it was on the silver standard.

15 Second secret High taxation equals financial death as economies die their fiscal systems like sharks tend to feed off the dwindling food supply. Money like fish moves where it is not eaten, hence the rise of economies such as Singapore, Hong Kong, Lichtenstein, Switzerland.

16 Third secret Find places with small populations, good food water and air supplies.

17 HOW TO MINIMISE TAXATION LEGALLY: THE FIVE STEP PLAN

18 1 the What you do not own cannot be taken away from you concept of trusts. In common law legal systems, a trust is a relationship in which property is held by one party for the benefit of another. In other words, a person gives property to another person upon trust for the benefit of someone else.

19 How it works Settlor Trustee TRUST Beneficiaries Assets

20 How it works (cont-d) l l l For example, if you gift your house worth $ 500,000 to the trust. Once gifting is completed, the house is basically untouchable. You could lose your shirt in a business venture, but the trust assets are legally separate. In this manner, the beneficiaries of the trust are protected. The other big benefit here is that the increase in the house value belongs to the trust, not you.

21 2 and Place investments offshore in different (low tax) jurisdictions different asset classes

22 3 and Create offshore businesses grow them

23 4 {self Always do everything legally. You can legally invest offshore and pay little or no tax directed IRAs (Individual Retirement Arrangement), retirement plan filings etc.} Investment for retirement is a concept that is acceptable and welcome to big brother because then he doesn t have to fund retirees.

24 5 world When your personal income reaches a certain level, become a citizen of the and retire

25 THE FINAL STEP OF THE PLAN IS TO CHOOSE A SECOND OR THIRD CITIZENSHIP WHICH DOES NOT TAX WORLDWIDE INCOME l l l l l CARRIBEAN PROGRAMES VANUATU Panama residency 5 % of the world s trade goes through here good food, lots of fresh water, small population

26 Caribbean Citizenship by Investment Programmes St Kitts & Nevis St Marteen St Barts Antigua & Barbuda Montserrat Guadeloupe Dominica Martinique Antigua & Barbuda Dominica Grenada St. Kitts & Nevis St Lucia St Vincent & The Grenadines Grenada

27 ANTIGUA & BARBUDA Capital: St. John s Total area: 440 km 2 Population: Official language: English Independence from the UK: 1981 GDP: US$ 1,2 billion

28 Tourism hub since 1970s, luxury travel destination and yachting mecca during winter season The country of 365 beaches one of the most beautiful beaches in the Caribbean English Harbour British legacy, international hub and port for super yacht

29 ANTIGUA & BARBUDA CITIZENSHIP BY INVESTMENT PROGRAMME Launched in 2013 Donation to National Development Fund: US$ 200,000 Real Estate Purchase: US$ 400,000 in an approved project Business Investment: US$ 1.5M for single investor, US$ 5M for joint investments

30 DUE DILIGENCE FEES l Principal Applicant US$ 7,500 l Spouse US$ 7,500 l Dependent child aged 0-11 US$ 0 l Dependent child aged US$ 2,000 l Dependent child aged US$ 4,000 l Dependent parent aged over 65 US$ 4,000

31 GOVERNMENT PROCESSING FEES l Principal Applicant US$ 50,000 l Spouse US$ 50,000 l Dependent child aged 0-11 US$ 25,000 l Dependent child aged US$ 25,000 l Dependent child aged US$ 50,000 l Dependent parent aged over 65 US$ 50,000

32 FAMILY OF 4 WITH 2 CHILDREN (11 YEARS AND UNDER) l Contribution US$ 200,000 l Due diligence investor US$ 7,500 l Due diligence spouse US$ 7,500 l Application processing investor US$ 50,000 l Application processing spouse US$ 50,000 l Processing children free Total US$ 315,000* *professional fees for citizenship processing are payable for all applications and will vary depending on the number of dependents and application complexity.

33 ADVANTAGES OF ANTIGUA AND BARBUDA CIP l l l Visa-free travel to 150+ countries, including the UK, Ireland, Schengen area of the EU, Hong Kong, Singapore and CANADA No wealth, inheritance and worldwide income tax Good real estate investment options with the opportunity to receive ROI and rental returns

34 THE COMMONWEALTH OF DOMINICA Captal: Roseau Total Area: 750 km 2 Population: 73,000 Official language: English and French Patio Independence from the UK: 1978 GDP: USD 516 mln

35 Young volcanically active island Unique virgin nature National Parks and Reserves Ecological tourism destination One of the best diving spots in the world Agriculture is the basis of Dominica economy

36 DOMINICA CITIZENSHIP BY INVESTMENT PROGRAMME Launched in 1993 Government Donation: from US$ 100,000 Real Estate investment: US$ 200,000+ in government approved project

37 DUE DILIGENCE FEES l Principal Applicant US$ 7,500 l Spouse US$ 7,500 l Dependent child aged US$ 4,000

38 GOVERNMENT PROCESSING FEE (IN THE EVENT OF REAL ESTATE INVESTMENT) l Principal Applicant US$ 50,000 l Spouse US$ 25,000 l Dependent child aged 0-17 US$ 25,000 l Dependent child aged US$ 20,000

39 COST OF CITIZENSHIP FOR A FAMILY OF 4 WITH 2 CHILDREN UNDER 12 l Contribution US$ 200,000 l Due diligence investor US$ 7,500 l Due diligence spouse US$ 7,500 l Processing fee per application US$ 3,000 l Certificate of naturalization US$ 3,000 (us$ 750 per person) Total US$ 221,000* * Professional fees for citizenship processing are required for all applications and will vary depending on the number of dependents and application complexity.

40 ADVANTAGES OF DOMINICA CITIZENSHIP BY INVESTMENT PROGRAMME l l l l One of the cheapest legal economic citizenship porgrammes in the world Quick processing Visa-free travel to the UK, Schengen area of the EU, Hong Kong, Singapore, etc. No wealth, inheritance or worldwide income tax

41 GRENADA Capital: St. George s Total Area: 344 km 2 Population: Official language: English Independence from the UK: 1974 DP: USD 835 mln

42 Spice Island of the Caribbean Tourism is developing rapidly Various landscapes include pristine beaches, mountains, waterfalls Nutmeg, chocolate, tropical fruits and vegetables grow in this rich volcanic soil

43 GRENADA CITIZENSHIP BY INVESTMENT PROGRAMME Signed into a law in September 2013 Donation to National Transformation Fund US$ 200,000 (covers up to 4 applicants) Real Estate Purchase US$ 350,000+ in an approved project

44 DUE DILIGENCE FEES l Principal Applicant US$ 5,000 l Spouse US$ 5,000 l Dependent child aged 0-11 US$ 0 l Dependent child aged US$ 2,000 l Dependent child aged US$ 5,000

45 GOVERNMENT FEE (FOR REAL ESTATE INVESTMENT OPTION) l Application for a family up to four members (principal applicant + 3 dependents) US$ 50,000 l Additional dependent after a third US$ 25,000

46 COST OF CITIZENSHIP FOR A FAMILY OF 4 WITH 2 CHILDREN UNDER 12 l Contribution US$ 200,000 l Due diligence investor US$ 5,000 l due diligence spouse US$ 5,000 l Application for family US$ 6,000 l Local agent fee for family US$ 13,000 l Processing investor US$ 1,500 l processing spouse US$ 1,500 l Processing children under 12 US$ 1,000 l Passport fee US$ 1,000 l Vat US$ 1,950 Total US$ 235,950 * * Professional fees for citizenship processing are required for all applications and will vary depending on the number of dependents and application complexity.

47 ADVANTAGES OF GRENADA CIP l l l Visa-free travel to the UK, Ireland, Schengen area of the EU, Hong Kong, Singapore, CHINA and other countries No wealth, inheritance, income tax USA E2 visa opportunity

48 ST. KITTS & NEVIS ST. KITTS Capital: Basseterre St. Kitts area: 178 km 2 Nevis area: 93 km 2 Population: 53,000 Independence from the UK: 1981 NEVIS Official language: English GDP: US$ 766 mln

49 St. Kitts is the Mother Colony and the heart of British sugar trade in the West Indies. The last sugar factory was closed in 2005 Tourism is developing rapidly to become the basis of country s economy Nevis is self regulated offshore Center with the efficient legal system

50 ST. KITTS & NEVIS CITIZENSHIP BY INVESTMENT PROGRAMME The oldest economic citizenship programme in the world launched in 1984 Donation to Sugar Industry Diversification Fund from US$ 250,000 Real Estate Investment US$ 400,000+ in approved project

51 DUE DILIGENCE FEES l Principal Applicant US$ 7,500 l Spouse US$ 4,000 l Dependent person over 16 y.o. US$ 4,000

52 GOVERNMENT PROCESSING FEE (IN THE EVENT OF REAL ESTATE INVESTMENT) l Principal Applicant US$ 50,000 l Spouse US$ 25,000 l Dependent child under 18 y.o. US$ 25,000 l Dependent person over 18 y.o. US$ 50,000

53 COST OF CITIZENSHIP FOR A FAMILY OF 4 WITH 2 CHILDREN UNDER 16 l Contribution US$ 300,000 l Due diligence investor US$ 7,500 l Due diligence spouse US$ 4,000 Total us$ 311,500* * Professional fees for citizenship processing are required for all applications and will vary depending on the number of dependents and application complexity.

54 ADVANTAGES OF ST. KITTS & NEVIS CIP l l l Visa-free travel to more than 150+ countries, including all European Union countries,the United Kingdom, Ireland, Caribbean, and Commonwealth nations. Citizens can often acquire long-term travel visas to the United States of America. No income, wealth, or inheritance taxes.

55 CITIZENSHIP BY INVESTMENT IN CARIBBEAN COMPARISON TABLE

56 GENERAL INFORMATION ANTIGUA & BARBUDA DOMINICA GRENADA ST. KITTS & NEVIS ST. LUCIA Programme launch Lifetime Citizenship Lifetime Citizenship Lifetime Citizenship Lifetime Citizenship Lifetime Citizenship Residence required 5 days total in 5 years None None None None Interview No* No* No* No* No* Passport Validity 5 years 10 years (adult), 5 years (child) 5 years 10 years (adult), 5 years (child) 5 years Passport Fee/each Visa Free Countries of Special Interest UK, Canada, Commonwealth Countries, EU, Hong Kong, Singapore UK, Commonwealth Countries, EU, Hong Kong, Singapore UK, Commonwealth Countries, EU, China UK, Commonwealth Countries, EU, Hong Kong, Singapore UK, EU, Argentina, Venezuela, Hong Kong, Singapore Time for Citizenship & Passport (estimated) 3-4 months 2-3 months 2-3 months 2-3 months Due Diligence YES, 12+ years YES, 16+ years YES, 12+ years YES, 16+ years YES, 16+ years Investor US$ 7.5k US$ 7.5k US$ 5k US$ 7.5k US$ 7.5k

57 GENERAL INFORMATION ANTIGUA & BARBUDA DOMINICA GRENADA ST. KITTS & NEVIS ST. LUCIA Child or Dependent Age <12 = No fee Age = US$ 2k Age = US$ 4k Age 16< = US$ 4k Age = US$ 2k Age 18+ = US$ 5k Age 16< = US$ 4k Age 16< = US$ 5k Nationalities and citizens restricted from participation Iran, Afghanistan, North Korea, Somalia, Yemen, Iraq None None Afganistan, Iran None Taxes No taxes on international revenue, wealth or inheritance tax. Nonresidents taxed on income from or sourced in Antigua & Barbuda. No taxes on international revenue. No wealth tax, no inheritance tax. Non-resident citizens taxed on income from or sourced in Dominica. No taxes on international revenue, wealth tax or inheritance tax. Non-residents taxed on income from or sourced in Grenada. No taxes on international revenues. No personal income tax, no wealth tax, no inheritance taxes. No taxes on international revenues.

58 REAL ESTATE OPTION ANTIGUA & BARBUDA DOMINICA GRENADA ST. KITTS & NEVIS ST. LUCIA Investment Minimum US$ 400k US$ 200k US$ 350k US$ 400k US$300k Holding Period 5 years 3 years 4 years 5 years 5 years Legal & Escrow 1-2% << 1-2% << US$10k +1% << 1% << Investor (Main Applicant) GOVERNMENT PROCESSING FEES US$ 50k US$ 50k US$ 50k US$ 50k US$ 50k Spouse US$ 50k US$ 25k Included US$ 25k US$ 35k Dependents Age < 17 = US$ 25k Age 18-25/65+ = US$ 50k Age < 17 = US$ 20k Age 18-25/65+ = US$ 50k US$ 25k after first 3 dependents Age < 18 US$ 25k per Age US$ 50k per Age < 18 US$ 25k per Age > 18 US$ 35k per

59 DONATION OPTION ANTIGUA & BARBUDA DOMINICA GRENADA ST. KITTS & NEVIS ST. LUCIA Official Entity Investor (Main Applicant) ONLY Investor (Main Applicant) + Spouse Investor (Main Applicant) + Spouse +2 kids National Development Fund (NDF) Government Direct DONATION AMOUNT National Transformation Fund (NTF) Sugar Industry Diversification Fund (SIDF) National Economic Fund (NEF) US$ 200k + 50k US$ 100k US$ 200k US$ 250k US$ 200k US$ 200k + 50k investor +50k spouse US$ 200k + 50k investor +50k spouse, kids are free US$ 175k US$ 200k US$200k US$200k US$ 300k Investor + up to 3dependents US$ 350k Investor + up to 5 dependents US$ 450k Investor + up to 7 dependents US$ 235k US$ 250k

60 THANKS A MILLION FOR YOUR ATTENTION

Dominica. Your guide to Economic Citizenship 2017

Dominica. Your guide to Economic Citizenship 2017 Dominica Your guide to Economic Citizenship 2017 THE COMMONWEALTH OF DOMINICA THE COMMONWEALTH OF DOMINICA Dominica, officially known as the Commonwealth of Dominica, is situated along the Eastern Caribbean