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Wednesday, 27 March 2013

Guardian's Exposé on Offshore Scams and Nominee Directors


Guardian's Exposé on Offshore Scams and Nominee Directors

Hey, 

ITCC's directors are 'Sham' / Nominee Directors. Just as those described in these articles.
The Nevis connection is there too, though with ITCC the supposed 'Directors' are residents of Monaco


Guardian Front Page Story  - the Sham Directors

Guardian Story - Offshore Secrets Revealed.

BBC Singapore - Company Accounts for 2006


BBC Singapore - Company Accounts for 2006



Close inspection of the accounts of the owning company of MS "BBC Singapore" (Briese Schiffahrts GmbH & Co KG MS Juisterbalje) would show that a decision to 'back date' the vessel into the tonnage tax system as from 01/01/2006 was taken at the end of 2006. Various back-dated invoices and credit-notes were issued by the offshore crewing arm of Briese/leda  (International Transport Consulting and Crewing Ltd, of Nevis - 'managed' by Transat Maritime SAM in Monaco) to produce the desired entries in the company's accounts. Even a cursory inspection by the company's auditors of the bookings into the 'cost of crewing' account would quickly reveal these cosmetic adjusts.

As an example, here are the 'revised' invoices that were produced for January 2006, numbers....12182 and 12321.





Of course, that vessel wasn't crewed per Tonnage Tax regulations at that time and invoice 12182 had really looked like this:



Same thing for March.........here is the revised invoiced recharging supposed 'wages paid on your behalf' which lists the contractual amounts for the crew on board. 




Unusually for Briese Schiffahrts, these were the (nearly) the actual crew members on board, but of course the wages are not quite listed as they were actually paid. Captain Schöder for instance earned EUR 6,680 per month as this schedule shows.


and the other members, USD3100.00, USD2327.00, USD3099.44 and USD2327.22.  Only other problem for the month of our example, March 2006, was that the 1st Engineer was not Mr Purtov but Mr Smol'nyakov as this wage summary from the time shows.
It also follows that under normal circumstances Leda/Briese would have had to make some sort of adjustments concerning the official payslips, and social security deductions and declarations that would usually be produced by 'Thien & Heyenga' as this work was outsourced to them.

Once upon a time there was a vessel called Süderoog. Retold, in case you forgot already


 Once upon a time there was a vessel called Süderoog. Retold, in case you forgot already


  
She was virtually shiny and new, having been delivered from the shipyard in December 2005.

Things were going very well for the Süderoog until the global financial crisis started to make it's effects felt in the chartering markets, and by the end of  2008 it was virtually impossible to find her any employment,. The  brave people working for her Owners (Briese Schiffahrts & Co KG MS Süderoog in Leer, Germany)  and BBC Chartering & Logistic (also of Leer, Germany) tried all they could to get the vessel employed, but to no avail.  So finally, regretfully, the only economical solution was for the vessel to be laid up.
Thus it was that during December of that year most of the crew of MS Süderoog were disembarked and the vessel was laid up.  Only two crew members were left on board to look after her while she went into an enforced hibernation.  Moored at the quayside, unladen, waiting......it's impressive cranes dormant,.


And so her plight continued, all the way through 2009.

These sad messages reflect our vessel's plight :



Of the usual nine ratings on board only two were there from January until July, then only an able-seaman/cook until the year end.   The time must have dragged interminably for this one poor soul.


Here is a worksheet showing the actual crew variances for the year :


"Not, much of a story!", do I hear you say?  Perhaps, but in September strange things had started to happen. Not on board the ship, but on dry land.

A message was sent on the 21st September from Briese's internal crewing department, then 'Leda Shipping GmbH' asking an offshore 'umbrella' management company in Monaco to issue invoices in the name of the offshore corporation (ITCC) used for invoicing the provision of ratings to the owners for a full compliment of officers being on board the ship for the first six months of the year



So there had been Officers on board?  Where had they come from?  Why was ITCC charging for them when they normally only supplied ratings?  Had ITCC also paid their wages?  Where had the vessel been to if it had had a full crew on board?  There must have been crew lists for the port of call records, agents disbursement accounts for theses calls bunkers and supplies bought,  air tickets arranged and paid for, and a whole lot more..  Were we faced with a 'phantom crew'?  Had the 'Süderoog' been making phantom voyages upon the high seas all this time instead of languishing in some forgotten corner of a port as we all had been led to believe? Had the vessel been under a highly sensitive military charter? 

More intrigue was to come......  it seemed the story was not closed, a request was received for an in-house travel agent to reissue invoices for flights to another vessel to the 'Süderoog' instead !!!  And on December  28th a definitive message seemed to explain all :...........................
and this was the attachment:

This was pretty serious stuff.............................and it continued over the next two days

28th December


29th December

Finally culminating with:

Hellor,
@@ asked me to get back to you in this matter. Indeed some of the previously issued invoices/credit notes are not required anymore. Here is how the figures will officially enter into our books:
 (1) Lumpsum USD 24.100,00 01.01.2009 - 05.07.2009
     => invoices 19667,19909,20200,20473,20712,20913,21118  credit note 22587
 (2) Lumpsum USD 6.600,00 06.07.2009 - 31.12.2009
     => invoices 22588-22593
 (3) wages paid by ITCC on behalf of Süderoog
    => invoices 19708,19947,20238,20510,20749,20950,21153
 Invoices/CN not needed (as you mentioned below): CN 21254, 22581-22586 Inv. 19643,19885,20176,20449,20691,20892
Which you can see here.................

This is only the crewing of the vessel for half a year...............Can you imaging what might be needed for the Charterer's accounts, Agents Disbursement Accounts, Bank Statements (!!!! ????) Bunkers, Lubes, Travel and Transport, 

How to fund a manning & recruitment office in Sevastopol that doesn't have a proper license?


How to fund a manning & recruitment office in Sevastopol that doesn't have a proper license?


What you do is pay it to the personal bank account of one of its managers.  That would mean that anything from $100.000 to $200.000 could moving through the account in a twelve month period.  The funds have to be declared as 'salary' so in theory could attract the attention of the fiscal authorities as they being declared by banking institutions as 'revenue' or 'income' to the fiscal authorities.

Such is the story of BrieseSwallowSevastopol

So where are ITCC's Management Decisions made? and by Whom?


So where are ITCC's Management Decisions made? and by Whom?


In Nevis?  In Monaco, by it's 'directors'?.............No.

Here's where......Leer, Germany.  

And by whom ?...........PJ and SM Coleridge..(the offshore company's directors) ?....No.

Here's who.............. the senior management of Briese Schiffahrts Gmbh & Co KG and Leda Shipping GmbH in Leer, Germany


Versicherungssteuer......... and how to evade it.


Versicherungssteuer......... and how to evade it.



19% "Insurance Premium Tax" (IPT) is a lot to pay on top of an insurance premium.

So imagine that you were a ‘German resident’ ship-owning or ship management company  that had to arrange insurance ship's crew accident insurance for, say, eighty medium sized general cargo vessels. For arguments sake let's estimate a yearly premium of EUR5000.  That would give a total bill of EUR400.000 and would attract  IPT of EUR76.000 pa.

Over ten years at the same rates you would have to pay EUR 760.000 in IPT !!!

But if one had a convenient non-German, or even 'Offshore' vehicle, one could perhaps arrange for the insurance policy to be subscribed to by that entity and thus avoid the 19% IPT. If premiums needed to be recovered by the offshore company they could simply be included in any transfer pricing arrangements with the German resident company(ies).

Now that's a good idea.

And that is exactly what happens with Briese Schiffarhts and ITCC. By channelling a large part of their insurance premiums via the 'offshore' ITCC (and before that ESC-European Shipping and Chartering Ltd, also of Nevis), Briese Schiffahrts has managed to 'get around' having to pay in the region of EUR1.000.000 in IPT.

And if there was any doubt...........


And if there was any doubt...........


So International Transport Consulting and Crewing Ltd of
Nevis, BWI, is an acting offshore branch of Leda Shipping GmbH and Briese Schiffahrts GmbH & Co KG.

And if there was still any doubt, here it is in the words of the 'President' of ITCC .......

So it must be true.


ITCC = Briese/Leda Offshore


ITCC = Briese/Leda Offshore

Here's a schedule from 2002, produced by Briese Schiffahrts, which shows the 'TOTAL' cost of crewing 'their vessels'. This is obviously the combined result of the figures from each German 'owning company' and ITCC. The final column is the decision that Briese have taken as as to how to adjust the 'Lumpsum' charged by ITCC to the Owners.







Tonnage Tax 2001 a complete exposé......Part I


Tonnage Tax 2001 a complete exposé......Part I

ITCC's approach to Tonnage Tax was to basically try and avoid, for as long as possible, issuing seafarers with German contracts.  In certain (numerous) cases, usually where an officer was an EU national/resident and would either refuse a German contract or the shipowning company thought that issuing one would cost way too much (with the higher level of salary demanded PLUS higher tax and social security contributions). attract, false contracts were issued in the name of non-european seafarers whose details were in the Briese/Leda database but were not currently employed on another vessel.

It was a full time job for more than one person to try and record who was really working on which vessel.
ITCC could not afford to declare that Captain Cheremsky was master on "Alta Mar" if he was in fact employed as a Captain by another company under a German contract.

Here are schedules for 2001 for the "Alta Mar" (simple and for only 2 months) and the "Ditzum" (more complex and for the whole year).








The rest of 2001...to follow....

Tuesday, 26 March 2013

Tonnage Tax - Full Example from 2008


Tonnage Tax - Full Example from 2008















Tonnage Tax – continued


Tonnage Tax – continued



The issuing of false declarations, payslips and invoicing was a regular monthly thing.

Even 'Non Briese' vessels were involved - here the "Gerhein G" features, belonging to the Gerdes group of Haren/Ems



Tonnage Tax (Merkel will Tonnagesteuer erhalten)


Tonnage Tax (Merkel will Tonnagesteuer erhalten)



The introduction of  Tonnage Tax in 2000 brought many problems with it. In order to reap the benefits of more lenient taxation the shipowning companies were supposed to convert a significant proportion of the employment contract of their vessel's crewmembers to German contracts. The seafarer would have to be employed a German corporate entity. This of course attracted various onerous social security and fiscal contributions, both for the employee and employer. Also many seafarers were not willing to accept this change. A way around this was to make false declarations as to who was on board, issue fake contracts, and false invoices, AND FAKE PAY SLIPS AND SOCIAL SECURITY/TAX DECLARATIONS (produced by outsourcing to Thien & Heyenga (T&H Leer).

Changes to fall in line with the system were made very slowly. Some vessels were 'easier' to change over than others. Within the 'Briese/Leda' group a schedule had to be kept of 'Real' and 'Fake' Tonnage Tax vessels.

Here is an example from January 2002






Abteilung Forschungsschifffahrt


Abteilung Forschungsschifffahrt




To come................

Open letter to all German State entities actively engaged in contracts with Briese Schiffahrts GmbH & Co. KG, Abteilung Forschungsschifffahrt. on the purpose, nature and activities of International Transport Consulting and Crewing Ltd (Nevis IBC managed by Transat Maritime SAM in Monaco) and BrieseSchiffahrt's involvement therein.


of which
  • Alfred-Wegener-Institute for Polar and Marine Research / Bremerhaven (RV ‚Heincke’)
  • Leibniz Institute for Baltic Sea Research / Warnemuende (RV ‚Elisabeth Mann Borgese')
  • GEOMAR, Helmholtz Centre for Ocean Research / Kiel (RV 'Alkor', RV 'Poseidon')
  • Institute of Oceanography – Control Station German Research Vessels / Hamburg
      (RV ‚Maria S. Merian‘)

Dear Institute of Public Auditors in Germany, IDW


Dear Institute of Public Auditors in Germany, IDW





Please be advised that a Leer, Ostfriesland based shipping company, housed under the umbrella of Briese Schiffahrts Gmbh & Co KG, engaged in false accounting when filing accounts for the year 2009. It's Directors and Managers actively made false declarations and provided false documentation to it's auditors during preparation and audit of the company's financial records. This included procuring and fabricating numerous false invoices including many from offshore crewing company International Transport Consulting and Crewing Ltd, 'managed' by Transat Maritime SAM in Monaco.

The German company's auditors, shareholders and bankers need to be made aware of this, as well as the relevant fiscal, social and judicial authorities.

Dear Finanzamt Leer


Dear Finanzamt Leer



Finanzamt Leer,,
Edzardstraße 12/16
Leer

Dir: Herr Lamberts

Tel.(0491) 98 70 - 0
Fax(0491) 9 87 02 09
Poststelle@fa-ler.niedersachsen.de


Dear Sirs,

Please be advised that a Leer based maritime enterprise , namely, Leda Shipping Gmbh, in-house crewing department of Briese Schiffahrts GmbH & Co KG, has for many years been actively engaged in tax evasion and social security fraud using an offshore vehicle International Transport Consulting and Crewing Ltd., managed by a Monaco 'management' company - Transat Maritime SAM.

Frauds and false invoicing via the vehicle International Transport Consulting and Crewing Ltd have benefited and implicate dozens of companies and individuals in Northern Europe, mainly in the regions of Emsland and Ostfriesland in NW Germany.

Le Financial Police in Monaco, The SICCFIN are aware of these operations. How could they not be?

Tonnage Tax - Bank Sub-Accounts in seafarer's names


Tonnage Tax - Bank Sub-Accounts in seafarer's names

One aspect of Tonnage tax was  that seafarers had to be employed with contracts issued by a German company.  Certain deductions for tax and social security contributions had to be made from salary, but for certain (mainly Non EU) crewmembers these contributions/deductions could be reclaimed at a later date.

Payments for refunds though would be by bank transfer in the name of the individual. So normally the crewmember's home bank account details should have sufficed.  But, employing crew under a German contract was expensive enough as it was, if the crewmember had already finished his contract (and perhaps wasn't even aware that he might be due any refunds) what was to stop the company receiving these refunds themselves, and perhaps subsidising the cost of the exercise?

Certain banks would allow sub-accounts of the crewing company's main bank account to be set up in the name of the crewmembers to receive any refunds of tax or social security contributions.

It was, and could well still be, a widely practiced procedure.

Here's an illustration from correspondance between offices of  a leading crew management company and referring back to a senior management figure of Thien & Heyenga, who was already well versed in the procedure it would seem.







Set up the sub accounts with a Cyprus bank (Why a Cyprus bank ??? - because they would do it (not many respectable banks would want to be part of what is clearly a questionable practice); because not too many questions would be asked and their due diligence was virtually non-existant at the time).  Provide these sub-account details to the authorities for receiving the payment of any reimbursements.  Receive the funds.  And forward them to the crewmember ??   Really  ??  You think so ??