Regular features from January 2005 109th Issue

One of the most frequently asked questions I get is by clients already retired or planning to retire in Thailand is how they can go about paying less tax in their country of birth or in the country where they earned or are earning their money.

This is hardly surprising given that we read so much in the press about the rich and famous using tax loopholes to avoid paying any tax at all. The Bernie Eccelstones of the world have accumulated vast fortunes which have escaped tax because they have arranged their affairs to their own advantage.

In contrast his fellow countrymen are taxed to death and after.

Even moderate levels of income are now taxed at 40% in many European countries, rising to as high as 60% when social and health tax are included.

Whilst these very high tax rates may provide some of the best healthcare in the world,

the problem is, this care is not usually available to those retiring outside their home country.

To avoid tax many save for retirement through a combination of pensions and other investments. The tax benefits of pensions in many countries are increasingly limited and most people resort to alternative forms of saving. These voluntary savings are then often subject to the same high rates of tax on income and gains despite the fact that people are trying to ensure they are not a burden on the state.

But it doesn't stop there. If that wasn't bad enough it nearly seems inconceivable that a government such as that in the UK would seek to apply further taxes on the death of the responsible citizens who had saved enough to look after themselves in their old age.

How wealthy would reclusive billionaires be, if like the rest of us, they paid 40% income tax on everything they earned instead of nothing and 40% tax on their savings instead of nothing?

Subsequently their families will inherit their parent's entire fortune free of all taxes whilst the rest of our families pay at least 40% to a government who will no doubt use the funds to subsidise those who have saved nothing. Most people are happy to help the unfortunate but they balk at helping the downright lazy and slothful.

To avoid being ripped off, especially if you are an ex-pat or will be one soon, look at some alternatives, do what the super rich do.

Firstly they look at a jurisdiction for their savings and investments where there is Government enforced capital protection for their investments. In other words, a jurisdiction where a special fund is set aside to cover investor's liabilities first, in the event of the company holding their assets going bankrupt.

Secondly the jurisdiction where their money is placed must have total confidentiality.

You may know that Bernie is a billionaire but how many times have you read in the financial press anything specific about his fortune?

Thirdly and probably most importantly for anyone hoping to accumulate wealth there must be no tax on your savings or investments - i.e. wealth tax, capital gains tax, income tax or inheritance tax.

How many of the super rich let the taxman follow them into the grave and decimate their estates. They may not worry about it when they are dead but they rest in peace knowing their families won't loose half their estate to the taxman and lawyers.

This may all seem complicated and difficult to arrange. It may be if you are dealing with an onshore broker who has no knowledge of offshore investing and the benefits to the normal investor, I have to say when I was plodding along selling investments pensions and savings plans for a reputable company in the UK I didn't really have a clue about how a consultation with a good offshore broker could change the wealth potential of the average client.

All success books will tell you that you don't have to reinvent the wheel to get rich.

Instead copy what the super rich do and there's a better than average chance that you will prosper too.

For further information on this article please contact Jerry at info@swissinvestcenter.net or visit his website www.swissinvestcenter.net

Mag's Page, the Pink Perspective

Yours truly once had the dubious privilege of working with a tall, lanky bespectacled Civil Servant named John (what else) whose favourite expression was "that went down like a cup of cold sick". So on seeing Managements choice of title for this page I was reminded of John!

Still - what's in a name. Just to put the record straght though, I must have been the only person in the U.K. convinced that John Prescott would get into No. 10 Downing St. and even put money on it.

Talking of names there was also the obligatory Kevin in the office. For the benefit of our American and Australian readers 'Kevin' in England is synonimous with computer nerds, train spotters and twitchers (bird watchers).

Strange that we don't seem to have many Kevins in Thailand . Plenty of Davids and other biblical sounding names, so where are the Kevins? Birdwatching on Patpong?

Whatever names they go by the ex pat male population of Hua Hin are generally not the same as those in more salubrious parts of Thailand . You know what I mean - we have a quite respectable bunch really, often younger than the male ex pat norm as well. Sometimes you wonder what brings them here well before retirement age (apart from golf, sun, cost of living etc.) when surely they could easily 'score' back home.

Then look at the competition. It's really often no contest is it. So we are faced with two options. Either arrive equipped with your own male ex pat and settle for the golf, mountain view home, maid and twin tub washing machine and live happily ever after. (Is Thailand the only place in the World still selling twin tub washers?) I certainly hope so, it's easier to drive a 4 x 4 by far.

Many ladies succeed - and nothing succeeds like a budgie without teeth (OK OK no more sorry puns.) But sadly a few of these accompanied males will fall off the marital merry-go-round and go Bamboo. This is a non offensive term meaning that they clear off with a Thai lady.

Option two is to arrive on your own and proceed to take your pick. A few farang women do of course settle down with Thai men, despite all THOSE rumours. Comments on a postage stamp please.

Those who don't really fancy them at all thank you very much and with great respect to some of Hua Hins' despite their Springsteen bums ('fannys' in American) clad in shrink fit faded brown. Pause for air - well there is a choice of ex pats or tourists. As we already know the apparently unattached male expat is attracted to the local fauna. Get involved at your own risk! Of course all men DO appreciate being able to talk to a female in their own language now and then. Even men like nothing better than a good natter about what colour twin tub washer to buy, and how to apply for a licence to drive it. They can make very good friends though, providing you show respect at all times to their Significant Other and can remember who it is this month.

Seriously - this is much more important than it would seem at first. For one thing we should all want to establish good relationships with local ladies. Many become good friends and we need girly chat as well as the guys. Just make them feel secure in the knowledge that you are not after their farangs ATM card and all should be well.

Tourists can be a whole different ball game. Without going to extremes about their general demeanour, some complaints have been heard on the Sois of Hua Hin about their unsolicited preying on women of any colour.

Hopefully these incidents are few and far between, but you know the type of tourist. He arrives at Don Muang with enough Strawberry Flavoured King Size rubber things to see him through 6 gruelling months in Patpong, and expects to get anything for 200 Baht. Dream On.

A sharp stab in the foot with a 40 Baht plastic flipflop will not deter these guys. Walk away with your best "I live here" look.

So how was it for you? Christmas. Thankfully here we are spared the Christmas Day TV, and the phone call from Mother in Law demanding that we leave the Pub immediately because the stuffing is rock hard and her 2 pressure cookers have blown a gasket.

Now there's an essential item rarely, if ever, seen in Thailand . The Pressure Cooker. So fetch your own along with the LeCreuset.

After some time pondering the absence of these dodgy appliances I found the answer. Pressure cookers, like chip pans, do not have an inbuilt contingency plan for people who might fall asleep while driving them.

Since Thai people have the enviable ability to fall asleep anywhere there is a big enough twig these devices are a definite 'no go' area. I mean you only have to watch the local Cable TV Movie Channel to understand. Long pauses of blank screen between movies, and if we are really lucky we get disc one shown twice.

Is that a page full Ed? I'm starting to feel sleepy on this twig.

Next Month - ovens, fridges and maybe even real girly things.

ROTARY CLUB

Rotarians from Hua Hin joined together to bless His Majesty the King on 05 December 2004 at Majesty Park , Hua Hin

Supanrika Eimyen from Hua Hin and her new husband

Joy (bottom left) enjoys a wine with friends on her birthday

Christmas Tree is all lit up at the Hilton

Santa and helpers at the Sofitel

Sofitel Central’s GM Mr Bernd Schneider with Governor and Hua Hin Mayor at the Sofitel Christmas tree lighting ceremony

Somtawin School’s drama club singing Christmas carols at the Sofitel

Useful Telephone Numbers for Hua Hin

Railway station
032-512 770, 032-511 073

Bus station of Hua Hin
032-511 654, 032-512 543

Bus station of Prachuabkirikhan
032-601 901

Bus station of Pranburi
032-621 443

Hua Hin Hospital
032-520 401

Dog Rescue Center
0-1981 4406

Wild life Rescue Center (Tayang)
032-458 135

Department of Land Cha-am office:
032- 430 846-7

Department of Land Hua Hin office:
032-536 164, 032-512 407

Department of Land Prachuabkirikhan:
032-611 211

Department of Land Pranburi
032-622 199

Local Government (Hua Hin)
032-521 340, 532 471

Local water supply
032-511 677

The Power Board of Hua Hin
032-512 215, 032 513 165

Observer office:
032-531 078

Red Cross.
032-512 567

San Paolo Hospital
032-532 576-85

Polyclinic International
032-516 424, 032-516 425

Shell Cooking Gas
032-511 144, 032- 515 620

The Communication Authority of Thailand
(Hua Hin)
032-511 351

Rotary Club of Hua Hin
0-1916 6637
Meeting every Thursday 8.pm
at Hua Hin Grand Hotel & Plaza

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