Monthly Archives: August 2013

Tax-Saving AB Trusts and New Estate Tax Rules

"Under the old tax laws, each spouse had an estate tax exemption, but typically, the first spouse to die didn't use his or her exemption. That's because most spouses left everything to the survivor and bequests to a surviving spouse aren't subject to estate tax. But the surviving spouse then owned all the couple's assets; estate tax would be owed when the second spouse died. The portability provision (which became effective in 2011) lets the surviving spouse use any part of the total exemption -- $10.24 million for deaths in 2012 -- that isn't used by the first spouse to die. So for most couples, there's no need for an AB trust." Continue reading →

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How the Vatican built a secret property empire using Mussolini’s millions

"Behind a disguised offshore company structure, the church's international portfolio has been built up over the years, using cash originally handed over by Mussolini in return for papal recognition of the Italian fascist regime in 1929. Since then the international value of Mussolini's nest-egg has mounted until it now exceeds £500m. In 2006, at the height of the recent property bubble, the Vatican spent £15m of those funds to buy 30 St James's Square. Other UK properties are at 168 New Bond Street and in the city of Coventry. It also owns blocks of flats in Paris and Switzerland." Continue reading →

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How the CIA Helped Disney Conquer Florida

"Starting in the mid-1960s when Disney set out to establish the Disney World Theme Park, they were determined to get land at below market prices and Disney operatives engaged in a far-ranging conspiracy to make sure sellers had no idea who was buying their Central Florida property. By resorting to such tactics Disney acquired more than 40 square miles of land for less than $200 an acre, but how to maintain control once Disney's empire had been acquired? The solution turned out to be cartoon-simple, thanks to the CIA." Continue reading →

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Saudi prince reserves portions of Disneyland Paris for $19.5 million

"A Saudi prince spent 15 million euros ($19.5 million) for three days of fun at Disneyland near Paris to celebrate his degree, the group that runs the theme park said Monday. Prince Fahd al-Saud booked entire areas of the park over May 22 to 24 for his 60-odd guests. The festivities included tailor-made events involving 'rare Disney characters,' Euro Disney told AFP. Special security was put in place for the prince, one of the park’s top customers, it added. The theme park attracted 16 million visitors last year but Euro Disney has not made any profits since it was set up 20 years ago." Continue reading →

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Is this one of the world’s most expensive suits, at HK$1 million?

"A tailor in Hong Kong has produced what he claims to be one of the world's most expensive suits. With 22-carat gold stitching, a gold waistcoat and diamond-encrusted gold buttons, the one-off was sold on May 29 for HK$1 million (US$129,000). It took Apsley Tailors 200 hours to make the suit from the finest wool, with gold woven into the fabric. Apsley Tailors is based at Punjab House in Tsim Sha Tsui. It is famous for its bespoke suits. Established in 1889, it became the go-to tailors for the British forces stationed in Hong Kong, making officers' uniforms as well as civilian attire." Continue reading →

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Golden threads for the undie drawers of the wealthy

"Hertli, the chief executive of Rococo Dessous, discovered the missing sparkle while a consultant in oil-rich Qatar. Speaking to private banking clients there, he realized wealthy people's love of all things gold was going unfulfilled in the under-there department. After moving to the U.S. and enrolling in Columbia Business School, he teamed up with former Victoria's Secret designer Breanna Lee to launch the first fashion line using gold thread sourced from Switzerland, according to the company. 'The materials are surprising soft and durable,' Lee wrote in an email." Continue reading →

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Federal judge: Bitcoin, “a currency,” can be regulated under American law

"In the case of a Texas man accused of massive Bitcoin-based fraud, a federal judge has ruled that bitcoins are 'a currency or form of money,' and are therefore subject to relevant US laws. The case revolves around Bitcoin Savings and Trust (BTCST), a virtual Bitcoin-based hedge fund that many suspected of being a scam. BTCST shut down in August 2012, and the Securities and Exchange Commission (SEC) last month formally charged founder Trendon Shavers with running a Ponzi scheme." Continue reading →

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“Startup Cities,” Honduras, and Experiments in Freedom

"Tom W. Bell, a law professor at Chapman University and a legal consultant to the Honduran 'startup city' project, spoke at Reason's Los Angeles headquarters about why libertarians should be interested in the potential for new forms of governance within the proposed 'zones of economic development' (ZEDEs) being pushed in Honduras. He addressed various legal challenges and setbacks that prior efforts faced, such as Paul Romer's failed RED zones. Bell also discussed other experiments in municipal governance, such as Co-op City in the Bronx and Sandy Springs, GA." Continue reading →

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Tax jurisdiction: Is space the final frontier?

"The United Nations is boldly going where no international body has gone before. At a meeting of its Economic and Social Council last week one of the items on the agenda was 'whether a satellite in geostationary orbit could constitute a permanent establishment' for tax purposes. The hydra-headed attempt to crackdown on tax havens risks failing because it could simply create a whole new patchwork of rules which can be just as easily gamed as the current lot. Alternatively, complexities for firms created by new rules could bring about the most unexpected of unintended consequences……… off-globe finance. In space, no-one can hear you tax plan." Continue reading →

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First Tax Haven in Armenia Launched

"Senior Armenian and Russia officials inaugurated over the weekend Armenia’s first-ever tax-free business zone which is meant to mainly cater to high-tech manufacturing companies. The Free Economic Zone is located in the premises of an electronics plant and a research institute in Yerevan that were handed over to Russia, along with several other Armenian enterprises, a decade ago in payment for Yerevan’s $100 million debt to Russia. Companies will be exempt from profit, value-added and property taxes as well as import duties. The government hopes that this privileged business environment will help to attract more foreign investment to Armenia." Continue reading →

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