Aggressive government tax legislation stifling economic growth

I recently provided an in-depth interview for Accountingweb on the changing state of international tax legislation and set out why I believe policy makers are failing the middle classes and stifling wealth management in many key global economies.

Here are a few excerpts from the full Q&A, starting with a general overview: 
 
“We are witnessing a rapid and dramatic change in tax legislations globally. The general lack of economic growth in most countries, coupled with varying degrees of incompetence and corruption in many governments results in steadily declining public and private wealth levels. Exploding public debt is now becoming largely unserviceable, as is the case with Greece, and countries are relying on cheap government financing to pay their bills and services, dangerously inflating their country’s debt. Easy targets are the nation’s taxpayers and particularly the wealthy who are being burdened by increasing taxation, often in a desperate attempt to fix their country’s moribund finances. France is a typical example.” 

Here is what this means for many hard working middle class families:

“The middle classes are being crushed by excessive taxes - again look at France - and there is an obvious exodus and brain drain, leading to further declines. The level of the population living in poverty and unemployment continues to increase, for example, creating a dangerous ‘circulus viciosus’. We are experiencing this currently in most western countries and many countries in Asia are facing the danger of a similar deadly spiral in the future, particularly in countries where current growth rates are stalling.”
And here is how this applies to companies and investors preparing for or reacting to these changes.
 
“The key is foresight. It is a well-known fact that all governments constantly seek measures to tighten the noose around the necks of corporates and privates. Clever tax structures cross border tax planning, shifting personal residence and business activities to jurisdictions with more acceptable tax levels, or offshore center’s, or even taking up second citizenships, will give excellent protection.”

Axel Von Schubert - online resources

Axel Von Schubert

As my latest blog post I thought I'd share all my online resources with you all as there is a growing wealth of online information about me on the web.

Firstly, my personal website axelvonschubert.com contains a decent summary of my professional background and there is also a Wikipedia page about me now which provides further background information.

The JP Capital Investments site and ECMS site are also useful, as is this Cruchbase profile.

I'm also an active social media contributor and can be found on Google+ and Twitter.

I'm also regularly featured on third party media and pieces such as this post from Talk Markets will continue to be published in the coming months.

Axel von Schubert - the changing strategies of offshore wealth management

Axel von Schubert - the changing strategies of offshore wealth management

Offshore investment is an often widely misconstrued concept, with small investors, media and government legislators at times failing to understand the flexibility and agility available in the marketplace.

Wise investors keep their portfolios active across multiple markets as they seek to avoid falling backwards due to the fluctuations of the global economy.

As the majority of global markets continue to make ground in the recovery period since the downturn of 2008 many of the typical considerations influencing wealth management in the leading global economies have remained at the forefront of the strategies of successful investment professionals.

Middle Eastern and Russian investors now look beyond the lack of variety in their domestic banking systems and Europeans remain concerned about the long term viability of the EU, so international investment is often the most productive way forward.

For wealthy Americans the dollar's performance and their nation's relationship with the Chinese factors into their strategy. For the growing markets of South America and India old worries of instability are still highly relevant..

For the English investor aiming to grow his wealth intelligently whilst property prices in London continue to skyrocket around him he must ponder whether that bubble will eventually burst.

For any individual looking beyond their domestic market for assistance with asset management one of the key considerations is the intricacy of differentiating between tax evasion and legally avoiding paying unnecessary tax.

This is where factors such as residency status, local inheritance tax laws, capital gains tax and the flexibility and sophistication of one’s native banking system come into play as investors seek maximum traction.

Why is looking offshore more relevant than ever for the wise investor? Because the past few years have seen fluctuations in exchange rates unprecedented in recent times, whilst tax and overseas investment regulations have evolved rapidly in individual markets. That's why investors come to us seeking advice on how to remain ahead of the curve.