Most IBC’s, in the past, were set up for these reasons:

1. Asset Protection
2. Privacy
3. Confidentiality
4. Tax Avoidance/Evasion

Today, if you were to ask 100 beneficial owners why they purchased, they would say it was for tax avoidance, privacy, asset protection and confidentiality, and therein lies the problem.

Confidentiality and Privacy are being eroded and what is left is Asset Protection. Prior IBC structures were set up with nominees creating an element of secrecy, however since the introduction of the Patriot Act and subsequent changes by the government you can’t hide anymore.

NCI provides unique tools for Asset Protection, Tax Reduction, Seamless Movement of Capital and Investment Management for Foreign Corporations. We offer exceptional Asset Protection for individuals and business people with either an NCI Premier Structure or an NCI Platinum Structure.

IBC’s were usually set up with Nominee Directors who took instruction from The Beneficial Owner. The only reason to have an IBC now is Asset Protection and Tax Reduction.

Litigation has become rampant in North America. IBC’s are generally set up to hold Assets and keep them away from Litigation. More than 82,000 lawsuits are filed daily in the United States. Holding any asset(s) in your name or jointly... is, to say the least, extremely risky.

Up to recently it was possible for the Beneficial Owner to hide behind the Nominee but that is becoming less and less attractive. Now Financial Institutions are requiring I.D. on the Beneficial Owners making it less attractive for many to have an IBC in this old type format. Most Institutions are requesting this I.D. information or accounts will be closed in 30/60 days.

There are a number of Acts that currently affect IBC’s and these are:

• The Patriot Act
• Proceeds of Crime and Money Laundering Act
• Exchange of Information Act
• Guidelines set down by the Central Banks

All of the above dramatically affect your Privacy.

There have been many amendments to these Acts in 2002 requiring Financial Institutions to comply with "The Know Your Client Rule".

These same Institutions are required to request I.D. on the beneficial Owners of the IBC’s.

The only reasons to have an IBC now are Asset Protection and Tax Reduction.

All current beneficial owners of IBC’s should be reporting their "Profits" to their relative Tax Authorities.

Many jurisdictions now ask the Taxpayer if he has any interests in Foreign Entities consisting of IBC's, Trusts and Foundations.

Should the answer to this question be NO then they are clearly offside from the perspective of a Taxpayer.