Are You All Sitting Comfortably..? Part - I

Are You All Sitting Comfortably..?  Trans At : Part - I

Let me tell you a story.......of Trans At.

Trans At is essentially just an umbrella for several offshore entities each linked to a business based in country where the trading and profits involved would normally be taxed at a level that might be considered 'discouraging'. The home (Onshore) enterprise is shown as being a ‘branch’ of an offshore company or simply a stand alone admin office. The offshore company – usually an IBC of St Kitts and Nevis – is incorporated by PJ (President of Trans At) through the offices of Morning Star Holdings Charlestown, Nevis, one of the principle company formation and registered agents service companies. The usual format is for PJ (principality resident and PDG of Trans At) to be appointed President, Director and Treasurer and for his partner SM to be Vice-President, Director, and Secretary. There is normally no paid up capital. Shareholding - usually by bearer shares (in the past) or to ‘Trans At Nominees’ a further Nevis IBC.

In the majority of cases, Trans At does no more for its client than arrange incorporation of an offshore entity; in some instances purporting that PJ is the Beneficial Owner, set up a bank account with PJ and SM as signatories, and then simply carry out the instructions of the real BO with regard to giving payment instructions to the bank once the accounts are put in funds. In other case the banks are advised who the proper ultimate benical owner and are provided with a copy of their passport. Trans At will also issue invoicing if needed.

Trans At took over this role from UTD Fleet Management (UFM) in 1999/2000. UFM had been set up in the mid 70’s by JJ, of Greek origin, to manage commercial management (chartering) contracts. At the time, PJ worked as a clerk in a Greek bank in London and JJ was a client of the bank. JJ approached PJ offering him a post in his new office in the Principality. During his time as an employee with UFM, PJ made acquaintances with shipowners and managers that would eventually become his own clients . UFM fell on troubled times and PJ was not paid his salary for many months. Eventually in exchange for the unpaid salary JJ signed over a 51% shareholding in UFM to PJ who then set off trying to establish some sort of management business with hi snewly acquired holding. Leaving behind many debts, JJ fled the Principality in the early 1990’s, but via a Swiss holding company retained 49% in UFM.

Eventually PJ managed to attract clients, principally via shipowners and managers based in northwestern Germany, which he put through the books of UFM, and others that were not put through the books but through an offshore company with a similar name UFM. PJ would produce annual accounts for UFM and in the usual fashion (quite legal in the Principalty) the majority of any profits would be assigned as special indemnities for administrators. Year end accounts therefore would always show the 'generally accepted level' of profit in the Principality of about 3% of turnover which would then be declared and 'taxed'. The accounts would be prepared and sent to the holding in Switzerland for the signature of the minority shareholder 'Temp Ora' (who would basically receive nothing as the company was shown assimply just ticking over and making hardly any profit).

During this time, around 1993/4, BS (a ship owning and management company, and its sister (in-house) crewing company LS, both based in the same offices in a town near the mouth of the River Ems in Ostfriesland, Germany had already been experimenting with running their own crewing operation via an offshore entity in Cyprus.

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To be continued