Axel von Schubert, Founder of JP Capital Investments Ltd. was featured as a leading offshore tax expert in 1997 in one of Germany’s most recognized main-stream publications, Die Welt. Here is a translation of the article regarding Bermuda, Cayman-Islands and Bahamas investments, that was published on Sunday, March 9th 1997 :
An increasing number of European investors are discovering the Caribbean as a new alternative to the traditional numbered bank account. “There has been a growing interest over the last 3 years from Germany”, comments the German lawyer Axel von Schubert in Miami, Florida. Together with his partner, he specializes with his Firm, Flynn, von Schubert and Associates, in the formation of offshore companies.
Von Schubert, 37 years old, has been advising investors wishing to place funds in personally controlled companies in jurisdictions such as The Bahamas, Bermuda or the Cayman -Islands. The advantage: Anonymity, absence of taxes and access to the US Dollar investment market.
Banks from English speaking countries are prevalent in the area. But: “Most of these banks do not offer numbered bank accounts.” In addition, the “birthplace” of the numbered bank account, Switzerland, is now obliged to disclose under certain circumstances the beneficial ownership of such accounts.
Due to an increasing demand for anonymous accounts however, more and more subsidiaries of European banks are opening their doors in offshore havens. Such an offshore in-house bank will generally maintain a so-called ‘omnibus’ account back home at its headquarters in Europe, by means of which investor funds are channeled to the Caribbean – the much needed anonymity is once again restored.
In 1996 alone, according to von Schubert, twelve new banks opened in The Bahamas, bringing the total number of registered banks in this particular country to over 400. Other reasons for choosing the Caribbean are the fear of a weak Euro as well as immediate access to a wide range of US Dollar based investments.
“Many investors certainly try to avoid embarrassing questions from tax inspectors back home”, adds von Schubert. According to the German tax union, there are currently 50.000 ongoing investigations for tax evasion triggered by money transfers from Germany to Luxembourg.