IB Tracing Ip Address

Quote from cgjung:

Again I want to reiterate my position has no malicious agenda but rather to develop a fund infrastructure that is sound and well positioned proactively to head off any future policy changes regarding the taxation here in Canada.

I think many of you who reside in the U.S take for granted how well conducive it is to set up an offshore fund and manage it in the U.S. However, in Canada our rules are restrictive and at times quite frankly stupid. We have extremely poor legislation governing hedge funds, since its legislation is only reserved for the institutional banks to preserve their position of power.

Example. Soros's fund is based in Netherlands, nominee directors and the whole board of directors reside outside of the U.S. Soros fund management is the principal advisor to the fund exercising all trading and advisory control. That would not be allowed here in Canada.

For one thing Soros is not a licensed CFA. In Canada if your are not a licensed portfolio manager forget about managing money.

Further more, the idea of all trades transacted through a Canadian server MAY raise objections by Revenue Canada as to the degree of "carrying a business" in Canada. Regardless as to the surface of the residency of board of directors and the incorporation of the company. Central mind and management test
by Rev Canada may construe exercising trades through a Canadian Server as an establishment in Canada and advisory execution of trades may be deemed to be principal management functions hence a Canadian Business. In law, it is frequently referred to as Substance over Form.

If IB cannot trace your IP address or if you use a Secure Proxy Server you are not treading in any illegal grounds but rather you are allowing yourself to avoid Revenue Canada exercising a precedent over the issue if they decide to change policies governing e-commerce legislation.

And my question are not load of baloney, if you care to review http://www.ccra-adrc.gc.ca/ecomm/ this will give
you more insight into the unresolved matter.

Before the internet, managers overseas would get a phone call from their advisors to execute a particular trade. The offshore
manager would okay the trade either by executing it himself or sign an authorization and faxed to the advisor to be executed in Canada. With the net and active trading, the advisor is now able to remove 2 steps. It is impractical to follow the traditional phone routine if you intend to intraday trade. Some large law firm here in Canada has advised to have the server in Canada
routed to an offshore server them to IB. To setup a server offseas may be cost prohibitive.

If anyone has any sugesstions it would be greatly appreciated. Any ideas on Secure Proxy Servers.
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Come to the Bahamas ...
 
Quote from def:

cgjung,

I'll preface my statement by noting that I am not a legal expert and that the following is my opinion and not the opinon of the firm (IB):

Whether we or any other broker could or would is not the issue. The issue is whether or not you are doing anything illegal (IT'S POSSIBLE YOU MAY END UP LIKE TRADER963)
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hUH??
 
I was just there in the summer. Vising for Business is okay but
living there no thanks. Unless you recommend a private island I believe there are over 300 islands.

Anyone with any answers yet. I though this forum was suppose to be an ELITE Trader Forum to help.
 
Quote from cgjung:

I was just there in the summer. Vising for Business is okay but
living there no thanks. Unless you recommend a private island I believe there are over 300 islands.

Anyone with any answers yet. I though this forum was suppose to be an ELITE Trader Forum to help.
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Private islands available ...
 
Trust me, there is no privacy once you log online. None whatsoever. That is why, if you can't put it on the front page of The New York Times, don't put it in your computer.
 
If you are really worried about this set-up a server offshore in an offshore broker's office and control it from wherever ...
 
As far as the Inland Revenue is concerned in the UK it doesn't really matter where the trades are actually done from, but where the actual trader is located.

You can have all the offshore servers/brokers you want but if they state you were calling the shots from within the UK then you're in for a big bill and a whole load of trouble thereon.

I know one big guy who's got around this by putting a kid in that offshore location, he's the ones pushing all the buttons, phoning the trades in, of course the trader is on the other phone or ICQ telling him what to do.

I don't know too much about the taxman in Canada but I'd expect he's pretty much like all of the scum, basically what he says is gospel and it's up to you to prove otherwise, not the other way around.
 
Quote from metooxx:

If you are really worried about this set-up a server offshore in an offshore broker's office and control it from wherever ...
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Good point...

nitro
 
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