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The Tax Prophet Newsletter   Issue # 45 January, 2007

Action Guides

In This Issue:
Legal Issues
OCC Plan
Tax Savings

Introducing the Ownership Continuity and Control Plan
("OCC Plan")


The legal systems of the United States and most other industrialized nations are relatively advanced and competent when it comes to deciding issues of ownership of corporations, such as when a shareholder dies.

Not so with emerging nations, such as India, Vietnam, Thailand, China or Mexico, where the legal systems are often a combination of inadequacy or corruption, and the resolution of ownership issues is, at best, risky and uncertain.

Legal Issues

The problem of uncertainty of corporate ownership and of succession creates many problems for the shareholders. Even for a simple business sale or stock sale, the uncertainty of the foreign courts gives little comfort to buyers that their ownership rights will be quickly respected.

When a shareholder dies, the business ownership may slide into limbo for many years before the issue of succession is determined.

Problems of uncertain corporate ownership may even permeate investments in the United States, such as where a brokerage firm may decide not to open an investment account or assist in the sale of a business interest to U.S. investors because the corporate ownership situation will be difficult to resolve.

OCC Plan

Enter the OCC Plan, which has been developed by Robert Sommers and Jay Adkisson. This plan seeks to consolidate the ownership of a business in an emerging nation into a trust and business entity combination formed either in the United States or an offshore jurisdiction which caters to such activity.

This combination thus allows for the quick resolution of business sale and succession issues in a jurisdiction where the laws are well-developed and the issues may be determined with some certainty.

Significant benefits of the OCC Plan include protecting the ownership and free transferability of intellectual property, foreign sales contracts, and facilitating buy-sale arrangements.

Other benefits include arranging U.S.- quality financial planning and life insurance consulting to provide benefits that are simply not available in many emerging nations.

Tax Savings

The OCC Plan also utilizes recognized U.S. strategies for mitigating taxes to the foreign structure, where it is practical to make such an application.

The OCC Plan could, for instance, include the use of a family-held captive insurance company to underwrite certain risks of the foreign business and thus provide an alternative and legal means of wealth and currency transfer out of the foreign jurisdiction.


The OCC Plan is not a structure for U.S. persons engaged solely in business in the United States, and does not seek to avoid or defer any U.S. taxes.

It is strictly limited to bona fide businesses legitimately operating in an emerging nation.

Click HERE for more details.

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All contents copyright 1995-2007 Robert L. Sommers, attorney-at-law. All rights reserved. This newsletter provides information of a general nature for educational purposes only and is not intended to be legal or tax advice. This information has not been updated to reflect subsequent changes in the law, if any. Your particular facts and circumstances, and changes in the law, must be considered when applying U.S. tax law. You should always consult with a competent tax professional licensed in your state with respect to your particular situation. The Tax Prophet is a registered trademark of Robert L. Sommers.