DNB Nor plan of setting up a Carlson Funds as a “Societe Anonyme” (S.A.) to initially save taxes and write of their subsidiary in Luxemburg; they might claim differently to save face, but the agreement with Luxemburg Authorities says otherwise!

Biathlon Ad Vital DNB

The Company in Scandinavia famous for getting George Clooney to be parts of their commercials and being synonymous with the Norwegian National Team of biathlon, making Ole Einar Bjørndalen wearing a Vital hat to the races and competition as a display of one of the main sponsors of the National Team. That is ordinary in sports, and is ordinary in the time we live in. So that a big bank is supporting a National Team is everyday event, but that is not what I will write about and discuss. As I got to read one of the papers in the Panama Papers leak. Here it is and hope you can see how DNB Nor ASA used the opportunities for meager taxation and higher earning for their subsidiary.

Before you continue her is a classy ad from the company:

Now we will see how the Norwegian Company can also be a little greedy and trying to avoid taxes in Norway, but still earning the profits and having accounts, but using the PriceWaterCoopers (PWC) offer for a Shell Company in Luxemburg to save taxes and still keep the funds in safety in Luxemburg. That is the grand DNB Nor who is the largest bank group in Norway.

Here is how they do it, and it is epic ways of using the shell-companies to avoid Norwegian tax regime and use a Corporate Fund that is a S.A. “Societe Anonyme” as financial company in Luxemburg to simply benefit from the specific tax status for a company in Luxemburg instead of the Norwegian one. Let me take you for a ride!

What is the Carlson Fund Management Company S.A.:

“Carlson is a Luxembourg resident company incorporated on August 14, 1990 as a limited company (“Societe Anonyme”) in order to develop the German and other European markets” (…) “Carlson is a company of DnB Nor group (hereafter the “Group”). The Group is Norway’s largest financial services group with total combined assets of NOK 1,834 billion. It includes strong brands such as DnB NOR, Vital, Nordlandsbanken, Cresco, Postbank.en, DnB NORD and Carlson” (…)”Carlson is part of the life and asset management branch of activities of the Group, DnB NOR Asset Management. It is Norway’s largest fund manager and has a leading position within discretionary asset management for institutional clients in Norway and Sweden” (…)”Until July 28, 2006, the purpose of Carlson was the creation, management and administration of a unique fund, Carlson Fund, created in Luxembourg on August 31, 1990. In this respect, based on the Luxembourg law on UCis, Carlson benefited from a specific tax status exempting the company from Luxembourg corporate income tax, municipal business tax and net wealth tax”.

You think that is saga in the making just see what more they did to secure lesser tax in Norway and close to none in Luxemburg, because corporate greed is what makes the world run like Ussain Bolt!

“By resolution of the Extraordinary General Meeting (“EGM”) held on July 28, 2006, Carlson has amended its by-laws in order to comply with the law of December 20, 2002 transposing the UCITS III Directive 85/611/EEC into Luxembourg law. Since the EGM, Carlson has been responsible for the management and administration of several investment funds. Carlson currently manages a portfolio of funds under 3 fund umbrellas: Carlson Fund, DnB NOR Fund and more recently DnB NOR Part II Fund since February l, 2008 (hereafter the “Funds”)” (…) “As from the date of the EGM (i.e. July 28, 2006), Carlson became subject to an unlimited tax liability and is considered as a newly incorporated entity for tax purposes”.

DNB Bankkort

You think that is bad and telling how the Carlson entity of Luxemburg, which funds and fueling money from the DNB Nor and their subsidies and banks in Norway. As he Tax is high here for any profitable business, this kind of transaction and order clears lots of funds from the Company and banks, which gives higher profits, because of less tax as they follows through consultation to follow the exemptions laws in the tax-haven. Here we go!

How do they secure the tax-exemption with the laws in Luxemburg?  

“Based on article 35 (4) of the Luxembourg Income Tax Law (“LITL”), when a company becomes taxable, all its assets and liabilities have to be valuated, at the time of the conversion, at their fair market value The assets and liabilities concerned are those “contributed” to the fully taxable entity, including intangible assets (article 59 (2) LITL)” (…)”the tax balance sheet has to take into account all the assets and liabilities of Carlson (i.e. the whole assets and liabilities whose, by nature, intend to serve the activity of the company2) including the valuation of the management contract. The administrative doctrine precises that is assimilated as an asset all the potential assets that can be exploited in the context of the activity of the company and with an individual economic value” (…)”Carlson has to revalue its capital in its opening tax balance sheet. The revalued capital includes the share capital of the formerly tax exempt company, the reserves accumulated by Carlson until the moment of the conversion, as well as the revaluation reserves resulting from the step-up at the moment of the conversion. The revalued capital is treated as “fiscal capital” in the hands of Carlson from a tax point of view. Any repayment (of part) of this “capital” to Carlson’s shareholders will therefore not be subject to withholding tax in line with the provisions of article 97 (3) b LITL”.

Now we have seen how the DNB Nord have put a S.A. Society Anonyme with the Carlson Funds to drop money into the Tax-Haven of Luxemburg as the DNB thinks the suits of Luxemburg to perfection and wondered if Barney Stinson bought suits made for Luxemburg.

DNB set up the Society Anonyme is set up with a new “EMG” to get unlimited tax-liability in Luxemburg. So the advice made the funds from the company under the Carlson from the time of the board-meeting by law of the 28. July 2006. The continued thing they did was to take their assets and monies fueled into the Carlson Funds, so the liabilities together with all of contracted value and management in the tax-balance sheet. So there fueling of moneys into the Fund is also fiscal capital and because of the status of the S.A. hide more in the secret company there.

DNB Nor

Then the control of Carlson Funds is by all means controlled by DNB Nord as written here:

“As an example, a major part of the support activities (e.g. accounting) is done in close collaboration with the members of the Group located in Sweden/Norway. Moreover, the members of the team managing Carlson in Luxembourg are all senior officers originated from the Group. Consequently, the distribution of the Funds in Luxembourg is mainly performed thanks to the support of the Group”.

Here is what the group is supposed to pay in tax:

“Taking into account the total 2006 and 2007 value of the business compared to the total 2006 and 2007 annual profit before tax, Carlson will pay an annual and arm’s length remuneration in accordance with articles 56 and 164 (3) LITL to the Group for its support representing 65,92% of its annual profit before tax” (…) “Carlson will benefit from such retrocession of fees over a period of 10 years. As the taxable activity of the Company started in 2006, we propose to recognize such retrocession as from August I, 2006 until the financial year 2016” (…)”The computation of the percentage of notional retrocession of fees will be subject to a supervision period of 4 years (2006-2010). In case of significant/major changes in the business in Luxembourg, Carlson commits itself to inform the Luxembourg tax authorities of any significant changes that would modify its business and/or its tax position in order to agree on the more appropriate tax treatment”.

If you wonder what retrocession means that is planned underwritings of the earnings of the company. Underwritings or retrocession is usually a volunteer act of a company to return property or ceding property, though usually by request and not by forced transaction. Also the underwriting is also done to diversifying assets by consolidating them amongst the stakeholders. That means the last one the percentage of the company which is 65 % of the profits of DNB NORD’s Carlson Funds will dived 65% of the funds to the stakeholders of the company. Initially meaning that the Stakeholders or the Owners  of the DNB NORD and that before any tax in Luxemburg, which is beautiful business model for the Stakeholders and for the ones owning DNB, and by literal controlling Carlos Funds.

The Company found another way to dodge a little more tax:

Net Wealth Tax: As no intangible asset is recognized in the tax balance sheet of the Company, there is no increase of the unitary value of Carlson for net wealth tax purposes”.

This is initially saying that since they have not written any assets of value when they started to operate, therefore they does not have assets or monies worth to be classified for the Wealth Tax Purposes in Luxemburg. Here was yet another way of using the loopholes in Luxemburg to get even less taxation and a favorable way of using the tax-system there.

This article in the middle of the charter of Carlson Funds says the truth of the company:

The purpose of the corporation is the creation, administration and management of one or several Luxembourg and/or foreign collective investment funds in transferable securities authorized according to the Directive 85/611/EEC, as amended (”UCITS”) and of other Luxembourg and foreign collective investment funds not covered by trus Directive (“UCI”) (all together the “Funds”) on behalf of their unitholders or shareholders in accordance with the provisions of chapter 13 of the Luxembow-g law of December 20, 2002 on undertakings for collective investment, as it may be amended from time to time (the “2002 Law”) , and the issue of certificates or statements of confirmation evidencing undivided co-ownership interests in such Funds. The corporation shall manage any activities connected with the management, administration and promotion of the Funds. It may on behalf of the Funds, enter into any contracts, proceed to any registrations and transfers in its nam~ or jn third parties’ names in the register of shares or debentures of any Luxembourg or foreign companies, and exercise on behalf of the Funds and the holders of certificates of the Funds, all rights and privileges, especially all voting rights attached to the securities constituting assets of the Funds. The foregoing powers shall not be considered as exhaustive, but only as declaratory”.

EuroOK

This here says enough of the practices of the Norwegian Banking group of DNB Nor or DNB Nord ASA had a subsidiary for recess their tax-operation and use the lucrative opportunities for keeping the profit without having issues with the Tax-regime in Norway. As the Norwegian rules and tax-regulation without studying them is stricter and has to be stricter than this. Because the end of the Tax contract with Luxemburg disclose the information where they are planning not to pay for their “Net Wealth Tax Due”. So even if the funds grow massively and the monies invested in the Carlson Funds, the opportunity to underwrite 65 % before the tax on its profit and that is possible with the “underwriting” method. In that sense the taxation of the will always is 10% on very little part of the funds, as the stakeholders can theatrically take 65 Euros on the 100 euros. Leave behind 35 Euros of it profit and pay 3, 5 Euro on the 100 Euros of Profit, that is a beautiful operations. If it wasn’t for the underwriting of the revenue then the company would have by the standard tax of Luxemburg paid 10 Euros of tax. 10 Euros is not much of a profit of 100 Euros, but still vastly more than 3, 5 Euros, the difference by quick calculation is 6, 5 euros. That is nearly a price of a Big-Mac Combo-menu that cost around 8 Euros in Luxemburg.

That is because of the technic of underwriting and sharing that with the shareholders and stakeholders of the Carlos Funds S.A. in Luxemburg which is their subsidiary. As written so nicely to the Luxemburg Department of Tax Collection in 2nd July 2008:

“on behalf of our client Carlson Fund Management Company S.A. (hereafter also referred to as “Carlson”), we respectfully request you to confirm, in writing, the content of this letter as to the Luxembourg tax treatment applicable to the situation described herein”.

That the Carlson was supposed to get the reasonable Tax Treatment for the company so there was a hashed plan from the get-go together with the Company of PriceWaterCooper. The plan was made an acted upon. This would not been possible if the DNB Nor did not use the guidance and setting up the charter after the laws there and follow the guidelines of the company setting it up for making sure of having less tax.

As explained with the 100 Euros scenario. The certainty is not any excuse from the DNB Nor can tell away.  As they explained in 2016 to the Norwegian Press:

“No, DNB Luxemburg does not help the costumers to avoid tax. The Advisors function as discussion and talking-partners when it comes to financial questions, which offers legal and legitimate tax-plan for the costumers who live abroad. It could for example be about advice about financial-solution, cross-border transactions, complicated inheritance-regulation and other taxing environment that would be different from the ones who are living in Norway” (…)”DNB does not operate in Luxemburg because of taxation (Foss, 2016).

Well, I have already explained there operation and how they get to pay as little tax as possible through their operation. So DNB Nor had or still have the Carlson Fund Management Company S.A. in Luxemburg to save taxes and earn more monies in their operation and company there. Something they would be able to do in Norway or under Norwegian taxing regulation. Peace.

Reference:

MF I/ECCi/ AEGN/C21108001 M-PEWR – “Carlson Fund Management Company S.A. – Identification tax number: 2006 2240 378- Recognition of a license fee for tax purposes” (02.07.2008) – PriceWaterCooper (PWC)

Foss, Andres Bakke – ‘DNB i redegjørelse i 2014: DNB Luxembourg hjelper ikke kundene med å unndra skatt’ (08.04.2016) link: http://www.aftenposten.no/okonomi/DNB-i-redegjorelse-i-2014-DNB-Luxembourg-hjelper-ikke-kundene-med-a-unndra-skatt-8422413.html#xtor=RSS-3

KCCA letter to IGP/Kampala Metropolitan Police – Re: Victory Celebration of Leaders in Kampala (07.04.2016)

KCCA 08.04.2016

Kampala new elected leaders (opposition) are to hold victory function Tomorrow Sat. 9/4/2016 at Nakivubo Settlement P. S. Starting 9am. The Guest of honour is Dr. Besigye. Inform a friend. Come one come all!

Kampala Opposition Leaders 08.04.2016

Press release from Kenyan National Police on bankers and accusing others of ‘misuse of social media’ to spread lies (08.04.2016)

KNPS PR 08.04.2016 P1KNPS PR 08.04.2016 P2

Congo: 17 killed in Brazzaville clashes; govt blames militia leader (Youtube-Clip)

The Congolese government on Tuesday night announced that 17 people had died in Monday morning’s gunfire in the capital Brazzaville accusing former militia leader, Frederic Bintsamou, of being personally involved in the disorders.  According to Thierry Moungalla, spokesman for the Congolese government, 17 people (3 agents of police, 2 civilians and 12 attackers) were killed in the “terrorist attack” that targeted the southern districts of the capital before “rapid response” of the police” (africanews, 2016).

Press Statement: Results of the Presidential Elections in the Republic of Congo (07.04.2016)

denis-sassou-nguesso-at-the-elysee-palace-in-paris

WASHINGTON D.C., United States of America, April 8, 2016 –

Mark C. Toner
Deputy Department Spokesperson

Washington, DC

April 7, 2016

The United States is profoundly disappointed by the flawed presidential electoral process in the Republic of Congo. Widespread irregularities and the arrests of opposition supporters following the elections marred an otherwise peaceful vote.

The United States calls upon the Congolese Government to correct these numerous deficiencies before scheduling legislative elections in order to bring credibility to future electoral processes. We continue to urge the Congolese Government to respect the people’s constitutional rights of freedom of expression, movement, and association. We further encourage all parties to engage in constructive, inclusive dialogue.

The United States is also deeply concerned about the welfare of thousands of Congolese who awoke on April 4 to the sound of gunfire and explosions and fled their homes. A climate of fear works against the national unity and peace that the Congolese people deserve.

We are inspired by the Congolese people, who have demonstrated a strong commitment to democracy and have persevered in difficult times. Their continued peaceful involvement in the political process is vital to the future development of the Republic of Congo.

ANC wants its members to stop anti-Zuma rhetoric in public (Youtube-Clip)

JOHANNESBURG, 8 April 2016ANC branches are calling for action to be taken against Zuma, following the Constitutional Court Nkandla judgment. Yet the governing party wants members to voice their concerns within the organisation, not in public” (eNCA, 2016).

Uganda Communications Commission’s take on Social Media!

“2016 Social Media Awards Uganda #SMAUG16 – Do you think Social Media should be regulated? Uganda Communications Commission take on Social Media!” (SMA Uganda, 2016).

VPN 18.02.2016 P2

UCC 23.02.2016

“So was Kibeho killing a Genocide ?” How Kagame Killed 8000 Hutu at Kibeho (Youtube-Clip)

“The Kibeho massacre is one of many committed by the the Rwandan Patriotic Army in Rwanda and DR Congo, but it is one of the most shocking because it was witnessed by UN Peacekeepers from Australia, Zambia, and the UK, and well documented by at least two photographers, but no one was ever prosecuted for the crime” (RDI-Rwanda Rwiza, 2016).

Open Letter from MP Bantu Holomisa to the Speaker of Parliament Ms. Baleka Mbete: “Request for Disiplinary Enquiry against President Zuma” (07.04.2016)

baleka

Ms Baleka Mbete

Speaker to the National Assembly

Republic of South Africa

Private Bag X15
Cape Town
8000

Dear Honourable Speaker

REQUEST FOR A DISCIPLINARY ENQUIRY AGAINST PRESIDENT ZUMA.

The above matter has reference.

Following the scathing Constitutional Court judgment delivered on the 31st of March instant, and found amongst others: “

“Consistent with this constitutional injunction, an order will thus be made that the President’s failure to comply with the remedial action taken against him by the Public Protector is inconsistent with his obligation to uphold, defend and respect the Constitution as the supreme law of the Republic; to comply with the remedial action taken by the Public Protector; and the duty to assist and protect the office of the Public Protector to ensure its independence, impartiality, dignity and effectiveness”.

A barrage of vicious attacks was meted against the office of the Public Protector and the Public Protector, by amongst others, members of the National Assembly; to a point of accusing her of misleading the nation. This grave misconduct has adversely affected the operations, performance and effectiveness of the Public Protector. Notwithstanding the clarity given by the Constitutional Court, the President, in his public half-hearted apology, failed to express himself on this matter of national interest.

In July, justice portfolio committee chairperson Dr. Mathole Motshekga told the Nkandla ad hoc committee: “We should not, and cannot, apologise when we say the report of the public protector is misleading and has misled the nation.”

The National Assembly Portfolio Committee on Justice and Correctional Services, led by the chairperson, Dr. Mathole Motshekga and Ms Thandiswa Mahambehlala brutally attacked the person of the public protector. This may have led to the economic embargo against the office of the Public Protector.

News 24 reported on the 3rd of April 2016; attribute the following to the Speaker of the National Assembly, Ms Baleka Mbete; “Now I don’t know who owes the public protector an apology about what because as far as Parliament is concerned, the situation has been explained,” she said.

It is my considered view, that the National Assembly has a Constitutional obligation to hold the President accountable on this matter. He has the duty to assist and protect the office of the Public Protector to ensure its independence, impartiality, dignity and effectiveness.

ZAPIRO Public Protector

Further, the Constitutional Court found, against the President: “Consistent with this constitutional injunction, an order will thus be made that the President’s failure to comply with the remedial action taken against him by the Public Protector is inconsistent with his obligation to uphold, defend and respect the Constitution as the supreme law of the Republic; to comply with the remedial action taken by the Public Protector; and the duty to assist and protect the office of the Public Protector to ensure its independence, impartiality, dignity and effectiveness”.

Schedule 2 of the Constitution under Oath or solemn affirmation of President and Acting President provides: “The President of Acting President, before the Chief Justice, or another judge designated by the Chief Justice, must swear/affirm as follows: In the presence of everyone assembled here, and in full realisation of the high calling I assume as President/Acting President of the Republic of South Africa, I, A, B., swear/solemnly affirm that I will be faithful to the Republic of South Africa, and will obey, observe, uphold and maintain the Constitution and all other law of the Republic; and I solemnly and sincerely promise that I will always –

  • promote all that will advance the Republic, and oppose all that may harm it;
  • protect and promote the rights of all South Africans;
  • discharge my duties with all my strength and talents to the best of my knowledge and ability and true to the dictates of my conscience;
  • do justice to all; and
  • devote myself to the well-being of the Republic and all of its people”.

The President has on numerous occasions, and with regard to the report of the Public Protector and the security upgrades at his private homestead; made statements in the National Assembly, which were not accurate and may be bordering on perjury.

To date, the nation as has not seen, the size and colour of a piece of paper purporting to be a bond that the President told the National Assembly funded his private home. Access to this document was never granted to the Public Protector as reported.

Jacob+Zuma+March+17+2016

Above all, the President had the audacity to come to the National Assembly and made mockery on a matter affecting the whole nation. We can all remember him infamously saying “…Nkandla – Nkandla! Owu Thixo – wa-se – George – Goch!”

Accordingly, it is my considered view that the National Assembly is enjoined to institute a disciplinary enquiry against the President, in order to ascertain the gravity and the seriousness of the conduct of the President, as determined by the highest court of the land.

In this regard, I propose:

That a disciplinary enquiry be instituted against the President to:

1.1.        Investigate whether the President has not misled the National Assembly with regard to his pronouncement on the security upgrades in his private homestead as well as the report of the Public Protector; and

1.2.        Investigate the gravity and seriousness of the conduct of the President as determined by Constitutional Court on the 31st of March 2016, and in line with section 89 (1) of the Constitution.

That the composition of the disciplinary enquiry be made up of three retired judges given that the National Assembly is conflicted, and that its findings should only be subjected to a review by a court of law where necessary.

That a Multi-Party Committee be established to conduct a review of the current legislation governing security upgrades for public representatives in order to avoid further occurrence.

That the National Assembly, set up a process that will immediately address the economic embargo meted against the office of the Public Protector and ensure that it is sufficiently resourced to be able to discharge its Constitutional obligations independently, impartially, effective and with dignity.

Finally, the National Assembly has no choice but to hold the President accountable. Failure to do so, will send an unfortunate message to many other entities, that since the President was never held accountable, no one will have consequences for misleading the National Assembly under oath.

Kind regards

Mr. Bantu Holomisa, MP

President of the United Democratic Movement

Mututho To Record Statement Over UON Remarks (Youtube-Clip)