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PANAMA FOUNDATION: BENEFITS
Private Use Panama Foundation Introduction
It well known within the offshore services industry that a major step forward
was taken by the Principality of Liechtenstein with the adoption of the Law
on Persons and Companies of January 20, 1926 which created the Family Foundation
(for the private benefit of members of one or more families) and the Mixed
Foundation (for the benefit not only of family members, but also of other
persons or institutions). The family foundation as a legal entity also exist
in Austria without much international recognition, however, due to the fact
that this country is not deemed as an offshore centre. Additionally, there
are the Luxembourg foundations with substantial differences to Liechtenstein
Foundation and also of reduced international recognition.
The Republic of Panama inspired in the laws of Liechtenstein adapted the European
model to create a Private Use Panama Foundation more modern and flexible,
with clear advantages for the protection of assets and international tax planning
and empowered to carry on transactions
Advantages to Can-Offshore Clients
Significant advantages are offered by the Private Use Panama Foundation. The
following are some highlights:
- The Can-Offshore Private Use Panama Foundation Charter is
uniquely drafted to meet Canadian requirements. It is "the Boat that Floats".
We have yet to see or hear report of any Panama lawyer who understands (or cares
to) keep compliant with CCRA. Would you want to go to sea in a leaky Boat?
- Total confidentiality and anonymity. The law on Private Use Panama
Foundations state that the Foundation Council, the Guardian (protector) and the
resident agent and any persons or institutions which by reason of their
function obtain information related to the activities, transactions or operations
of theSpecial Interest Panama Foundation shall at all times be obligated
to maintain strict secrecy, even after its liquidation. Violation of this
rule shall be fined with imprisonment of up to six months and penalties of
up to US$50,000 without limiting the respective civil liabilities arising
from there.
- Total exemption of taxes in the Republic of Panama, including without
limitation, income tax, wealth tax, real estate tax, inheritance tax, sales and transfer tax
and others.
- There is no legal requirement to disclose the name of the real founder,
beneficiary or protector.
- There is no requirement to file any annual tax return or financial
statement.
- There is no obligation to hold an annual meeting of the foundation
council, the founders or the protectors
- Fast incorporation.
- Simple administration and management procedures.
- Reasonable incorporation and maintenance fees.
- There is no legal requirement of maximum authorized capital.
- The payment of the foundation capital is not required for the incorporation
of the foundation and there is no maximum time or deadline to make such contribution.
- There is no limitation in respect of perpetuities, accumulation of
capitals and other restrictions which are required in similar structures in other
jurisdictions, such as the Anglo-Saxon or common law trust.
- The private interest foundation can engage in any business or civil
transactions (only in exceptional cases) in part of the world and in any currency.
- The founders, members of the foundation council, beneficiaries and
protectors may be individuals or corporations of any nationality.
- The members of the foundation council need not be founders.
- The founders, the protectors and the members of the foundation council
may be beneficiaries of the foundation.
- There is no limitation on the maximum permitted number of founders,
members of the foundation council, beneficiaries or foundation protectors or
guardians.
- The founders and the members of the foundation council may hold their
meetings in any country and may be represented by proxy.
- The foundation books and accounting books may be maintained in Panama
or abroad.
- The foundation charter can be signed by an attorney in fact or by a
trustee without the need to disclose the name of the founder.
- Private Use Foundations incorporated in other countries can be
re-domiciled or continue existing as Panama Private Interest Foundations and
vice-versa following a simple continuation procedure.
Practical Uses of the Private Use Foundation
- To protect family business providing continuity to second and third
generations.
- To protect defenseless persons such as minors, disabled and persons incapable
of managing their assets.
- To manage payments of money or the distribution of assets to members of the
family or to provide for the education, housing, maintenance or profit sharing of members of the
family.
- To carry on scientific, philanthropic, religious,
humanitarian purposes, or
to manage funds or assets for the benefit of these activities.
- To manage profit sharing as well as pension plans to employees.
- As a sophisticated and efficient substitute of the testament or will.
- As a holding of shares, participations or interests in private or public corporations.
- As a vehicle for the collection of royalties.
- As a vehicle to invest in shares, bonds, mutual funds, bank deposits
or other assets.
- As a vehicle to own real estate or other assets of considerable value
such as art works.
- As a vehicle to protect assets against excessive taxes, claims by
creditors, political instability or forced heirship.
- To operate bank accounts in any part of the world.
Qualifications
A business or individual that has investment income tax payable above US $10,000 - 15,000
annually could benefit from a Foundation structure. For example:
a US $100,000 fund earning 10% interest would benefit;
a US 50,000 fund earning 20% interest would benefit; a US 20,000 fund earning 20% interest would not benefit based on cost.
Contact us by Skype, email, encrypted form on
Can-Offshore's contact page,
or phone to discuss the planning opportunities and benefits of using our unique
Platinum Foundation structure as the ultimate and strongest form of Panama
Foundation with IBC package for tax mitigation and asset protection.
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