Forum Archive Index - February 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Malcolm,

>
>
>Snoopy If my understanding of Brierley statements is correct this 
>was a Bermuda type wealth tax on assests incorporated in Bermuda. If 
>you owned them you are liable for Bermuda Tax. I no longer have the
>documentation, to quote the wording exactly but it was mentioned 
>under tax implications for all shareholders of the change of
>incorporation.
>
>

Well Malcolm, you may have ditched your documentation.  But at 
my place there is a cardboard box which I term my 'library of shame' 
that holds such infamous documents.

>From the notice of Special General Meeting under Appendix 2, 
"Summary of Bermuda Company Law" under Section (2j) Taxation, I 
quote:

"Under present no Bermuda Law witholding tax on dividends or other 
distributions , nor any Bermuda tax computed on profits or income or 
on any capital asset, gain or appreciation will be payable by an 
exempted company or its operations, nor is there any Bermuda tax in 
the nature of estate duty or inheritance tax applicable to shares, 
debentures or other obligations of the company held by non-residents 
of Bermuda."

So it looks like you were wrong :-).

>
>
>And think about this one to You buy Australian Shares
>through an Australian Broker and sell for A profit you are liable 
>for australian capital gains tax (if the australian tax department 
>gets strict) as all transactions occurred in australia
>
>

I have owned Australian shares that have been taken over and no 
witholding tax on capital has ever been taken off when I was sent the 
cheque.  I don't recall a broker witholding tax on shares they have 
sold on my behalf either.  The Australian tax authorities are, of 
course, allowed to do whatever their own legislation permits.   But 
it does seem that if they do indeed have a power to withold money as 
a capital tax, they are unlikely to do it.   And even if they did the 
Cullen wealth tax would be addition to that anyway, so I'm not sure 
why you brought this up. SNOOPY



 




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Message posted by Harry Tennyson
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