fecherklyn has left 246 comments

fecherklyn comments on The DCA more fully explained

Quantum, Just a remark related to how media can exaggerate matters if it suits their interests. The article you cited talks about "massive congressional funding......". Does anyone really think US$ 46 million constitutes MASSIVE funding? I do not think such a sum will allow much "military construction"? In the same context an American court awarded US$ 300 million to one claimant against a tobacco company this week. What is MASSIVE nowadays? It must depend upon what point the issuer is trying to make.

fecherklyn comments on Venezuelan army blows up two bridges in Colombia

I said lets wait for further facts before coming to conclusions. The following statement by Venezuela may not be "provable fact" but it does, in my opinion, give us reason to wonder if Colombia is not in such a rush to criticise Venezuela that they are overdoing things. I wonder if Colombia's reputation will not be tarnished by this impetuous outburst. Quote Venezuelan VP: Colombian govn't purports to be a victim Venezuela's Vice President and Minister of Defense Ramon Carrizález Rengifo said that the Colombian Government intends to manipulate the truth in the case of the illegal border gateways that were eliminated in Venezuelan territory by members of the Bolivarian National Armed Forces as they were used primarily for drug trade and smuggling. "Border passages between two places are agreed upon by the two governments in such places where there is presence of both States. There are special rules such as customs regulations and agreements. Any other passage in the more than 2,000 kilometers of border we share with Colombia is an illegal crossing," he added. He questioned the position of Colombian authorities. "They rushed to accuse us of an attack. How can the Colombian minister talk about border crossings if he knows that in the border there are specific regulations agreed by both governments and which are fully in force," he said. He clarified that illegal passages are fought by all governments in the world. Therefore, there are sites agreed between the governments for people to transit legally. "Any bridge, improvised passage or trail that is used to enter or leave a country without complying with the agreements governing the matter is illegal (...) We have an obligation and are determined to preserve sovereignty and integrity of the Venezuelan territory and enforce the law anywhere in the country." Asked about likely legal actions before international bodies by Colombia, Carrizáles said that Venezuela would investigate any complaint that is filed formally, but he added that the Colombian government only makes allegations through the press. Unquote

fecherklyn comments on Venezuelan army blows up two bridges in Colombia

My 1st thought on seeing this news was that "this time Venezuela has gone too far". but further information that is arriving seems to make the situation more contentious. First reports said Venezuelan troops ENTERED COLOMBIAN TERRITORY and destroyed the bridges. Now it appears the bridge traverses both frontiers and was mined from the Venezuelan side. Venezuelan sources state the bridges were ILLEGAL, UNAUTHORISED structures that were used by civilians involved in illegal activities. The Tachira Governor has confirmed both above allegations and HE IS NO CHAVEZ SYMPATHISER!!! Indeed, many analysts attribute much of the frontier tensions to Chavez's attempts to regain control of this frontier state which had fallen into Opposition hands. In my view we should not jump to conclusions just because it seems to give an unfavourable image to Chavez/Venezuela. Lets wait for facts.

fecherklyn comments on New requirements for income as pensionado ??

rjstuff, I confirm you are right. Pensions are NOT taxed in Colombia save for a few exceptions that don't concern most people. This rule equally applies to Foreign Residents receiving pensions in Colombia that were sourced from elsewhere. I declare to the Colombian Tax Authorities my British and French pensions every year and they have never been taxed....but of course they amount to less than the qualifying limit antway.

fecherklyn comments on income tax in colombia?

Stocktrader, Because it is the law in country B??????????

fecherklyn comments on Chavez's policies go from bad to worse

Medefockinllin, You allege "The poor are very happy with Chavez. The rich are obviously not. Corruption is rife across Latin America. The police were even more corrupt in Venezuela before Chavez". Everyone is entitled to their opinions of course but I believe what you are saying is incorrect......and I lived there for 5 years (until 2003) and still have family and friends there. And before you ask they are not representative of the rich or upper class. In my opinion your above comments sound as if they come from someone indoctrinated by Chavism....everything Chavez advocates is good, anyone criticizing Chavez is an "enemy squalido". Life is not that simple. From what I hear direct from people living there on a virtually daily basis is that hardly anyone nowadays likes Chavez and he certainly is not POPULAR, except of course by his closest supporters whose personal interests are vested in his remaining in power. The ordinary people in the street are now in 2 minds. On the one hand they appreciated his notion of setting up "missions" although this appreciation is now muted by several years of experience which has shown them to be "showcase" rather then effective. Try going for medical treatment or to one of the markets if you do not believe me. On the other hand they have long suspected his rhetoric is largely inflamatory and he is somewhat of a clown on the world stage. Of course this did not matter whilst he was "delivering" but now, confronted by a continuation of misery and no improvement they are increasingly opening their eyes and saying what they see. So POPULAR...NO. As to the police being more corrupt pre-Chavez than now....I think the verdict is still out. Pre-Chavez corruption EVERYWHERE was rife. Now I hear it is much the same. But what has happened is that SECURITY is MUCH MORE of an issue. I suggest you go there for yourself and report back yourself....that is if you safely survive the streets.

fecherklyn comments on income tax in colombia?

Haghj00, I'm not really an expert but I have understood the following: If you come to Colombia and live there for more than 6 months in a year you become a Resident for tax purposes. During the first 5 years of presence in Colombia (I.e. before you become a "Permanent? resident) you do NOT have to declare incomes or assets OUTSIDE of Colombia. Thus for the 1st 5 years you SHOULD make tax declarations on your Colombia sourced incomes and assets subject to these values exceeding a certain amount which is upgraded every year. Once you become a Permanent Resident (after 5 years) you must declare your GLOBAL incomes and assets. These will be taxed at Colombian rates UNLESS double taxation agreements exist with the countries these incomes/assets are sourced from. I also do not understand your comment that on leaving Sweden you will no longer be taxed by Sweden for incomes sourced from Sweden. I thought it was a worldwide tax rule that taxes will be applied by the country that sourced them irrespective of where you reside. This is certainly my case as I receive incomes sourced from the UK and France and both these countries tax them despite the fact it is MANY years since I lived in either.

fecherklyn comments on Chavez's policies go from bad to worse

Haghj00, "Socialism works very well, look at the scandinavian countries". I hate to give a label to persons I do not know, but with the greatest of respect, I find you to be very naive and an easy target for all those (mainly Americans) who generalise Europeans (and particularly Scandinavians) as utopian left-wing liberals. The truth of the matter is that the notion of "Socialism" means all and everything to all people. In other words the concept of Socialism as it is understood in Europe IS VERY DIFFERENT FROM THE BRAND OF SOCIALISM ADVOCATED BY CHAVEZ. I am European and have lived in Scandinavia ( Norway) and have very good memories of my life there and the way Socialism is materialised there. But I have also lived in Venezuela and his version of Socialism has very little to do with democratic ideals.Haghj00......how do you as a (European) Socialist reconcile the notion of democracy with the application of a policy that the entire electorate is made up of those who are for or against govt policy and those who are opposed ARE THE ENEMY? Do you feel it is democratic to apply REVOLUTIONARY tactics to FORCE Govt policy and suppress opposition. I will answer for you....I am sure you would not agree with this form of Socialism....you simply do not realise how others are misusing the concept.

fecherklyn comments on Chavez's policies go from bad to worse

Romy, You ask "Is Chavez aware of who votes for or against him?". The answer is a VERY DEFINATE "YES". I have lived there pre-Chavez and during the early years of his 1st mandate. The fact that the computer lists of those voting in the referendum AGAINST the renewal of presidential mandates was identified and used against such individuals is widely known and even accepted by the govt. I am also concerned by democracy in Colombia and I assure you I am open-minded and by no means convinced Uribe's govt is beyond criticism. However, I like to be able to see both sides of every arguement....don't you?

fecherklyn comments on New requirements for income as pensionado ??

MaBarker, "I'm hoping if someone here can answer the question about what your tax liability is to the Colombian govt if you get one of these pensioners visa and you become a permanent resident". Its very simple. Once you are a "Permanent Resident" you are effectively treated as if you were a Colombian. The Colombian Tax Authorities will apply standard Colombian tax regulations which will require you to submit annual local tax declarations if your GLOBAL annual income OR capital asset values exceed that year's limits AND YOU WILL BE TAXED ON THESE VALUES LESS ANY ALLOWABLE ALLOWANCES. Consequence, incomes paid OUTSIDE Colombia to a FOREIGN PERMANENT RESIDENT BECOME TAXABLE IN COLOMBIA UNLESS THE COUNTRY OF THE FOREIGN SOURCED INCOMES HAS A DOUBLE TAXATION AVOIDANCE AGREEMENT WITH COLOMBIA>

fecherklyn comments on Chavez's policies go from bad to worse

Stretching the point, I do feel it is often appropriate to comment about Venezuela in the Colombia forum. It is clear that one of Chavez's political ambitions is to introduce his version of revolutionary socialism (better known as communism) into Colombia. Thus opinion and comments about what is happening in Venezuela are very relevant information for Colombians if they are to have a better idea of what Chavism could bring to Colombia. Please note I have no philosophical objections to Chavez trying to introduce Communism into Colombia.....SO LONG AS HE TRIES TO DO THIS IN A DEMOCRATIC MANNER. But how DEMOCRATIC is Chavez? In this context Tasco's 07h12 post contains an interesting comment; "And while he's still popular now, his polls are slipping rapidly, showing him close to, or under, the critical 50%". In my opinion these 2 factors may have no bearing to each other as I suspect Chavez is becoming increasing UNPOPULAR (within Venezuela) whilst his electoral power remains largely intact. The fact that Chavez may be able to maintain his electoral advantage is not surprising (but hardly democratic). With the accelerating nationalisation of vast swathes of Venezuelan industry the majority of the population is now employed by the State. So whilst Chavez may be unpopular it becomes a very difficult personal decision for workers to vote against him if their jobs are at stake. Colombians need to know about such repercussions before apeing Venezuela's historic decisions. It is easy to be tempted by communist ideals....but it is difficult to leave its path once you have entered it.

fecherklyn comments on Medellin Real Estate

A good scheme...but not perfect: -Advantages: the marginal construction created by the subsidies keeps activity at a higher level than it would have been otherwise. -Disadvantage: candidates for the subsidy benefits must have STABLE EMPLOYMENT. So the scheme does nothing to create NEW employment (admitedly it keeps the construction workers working). Unemployment is perhaps the biggest social problem in Colombia (Just try getting a permanent job unless you "know someone"). But better this scheme than NO scheme at all.

fecherklyn comments on Colombia rises five spots in UN Human Development Index

I rarely visit PBH nowadays but when I do so it is in the hope of finding debating material of the quality supplied in this thread by Gatogris, Romy & Jimbo. That you have differing opinions just adds to my interest....whilst you can avoid it becoming too personal. On the subject, I quickly examined the report when it came out, identified it excluded many factors that equate to quality of life according to my appreciation, but was transparent as to what factors were evaluated (or excluded) in their evaluation, and then arrived at some ratings that surprised me. In particular I was surprised to find Venezuela rated higher than Colombia and was advancing (until 2007) at a faster rate. This shocked me as I have lived in both countries and the result was in pure contradiction with what I have experienced. So how much confidence can we give to the statistics volunteered for use in this report? Thus forget if the report really covers the factors that equate to quality of life (or if some have been forgotten or exclude) ....the foremost requirement is if one can rely on the statistics used. Would anyone here really believe statistics from Venezuela relating to such matters as life expectancy and educational opportunities are more reliable than those submitted by Colombia. I go by reports from people inside Venezuela which suggest their submissions are "massaged" for external consumption. But who can vouch for the veracity off any of the claims? In this context, I particularly appreciated Gatogris's post suggesting this report has little value other than of the "self congratulory" nature.

fecherklyn comments on jimbo67856

Jimbo, I rarely visit PBH nowadays but have just came across several of your contributions, all of which have impressed me. Consider me a friend.

fecherklyn comments on ECOPETROL - An excellent dividend yield, but why so high in comparison with other companies?

JDG I am retired so I am not really looking for capital gains but rather a dependable income stream. If I buy some Ecopetrol, or any other local company shares, I will do so via Interbolsa or some other Sociedad Comisionista de Bolsa. ConorC Your understanding is also mine but it does not really explain why Ecopetrol's yield is so high in comparison with other companies. Normally such a situation will be due to added risk concerning that company's ability to maintain earnings/dividends.....but I have heard of no news about Ecopetrol that would give rise to such fears.

fecherklyn comments on Whats happening to gas prices in Colombia?

My local gas station in Medellin has been selling diesel at 5949 peso/litre for at least the last 4 months...without changing the price 1 peso. This suggests to me the Colombian Govt regulates gas prices within Colombia.

fecherklyn comments on DAS – Using a sledgehammer to crack a nut?

MES, "Vitriol", something felt to resemble vitriol esp in caustic quality: esp : virulence of feeling or of speech. I chose this word carefully.

fecherklyn comments on DAS – Using a sledgehammer to crack a nut?

jman73, My IP was intended as a helpful alert to fellow posters. Your reply appears to be pure vitriol. I note you were born and now live in Afghanistan and are of an unspecified sex. So far your contributions do not seem very impressive.

fecherklyn comments on DAS – Using a sledgehammer to crack a nut?

Paisa, Apparently NOT so peculiar. Because drug smugglers have now began transporting their drugs as an ingredient of constructed/fabricated articles the DAS has now been forced to check the chemical structure of things you are carrying. I appreciate their problem but I don't think they have given enough thought of how this can be achieved with the least hassle for innocent travellers.

fecherklyn comments on

The Colombian tax man HAS looked for additional funds. He has recently announced that taxation of certain items previously scheduled to elapse shortly were now being reconducted for a yet to be determined period. And that is probably only a starting point. But if you are N. American or European don't get jealous as I am sure your own tax authorities will soon be playing the same game...and more energetically.

fecherklyn comments on

Incidentally I became a permanent foreign resident in 2008 when my initial first 5 years here elapsed. Accordingly my Colombian 2008 tax declaration (which I have just submitted) had to disclose my retirement incomes and assets from outside Colombia. However, I shall not be liable to any Colombian taxes. This is because retirement incomes are exempt in Colombia unless they exceed certain limits. This limit is presently the COP equivalent of US$ 10,000 per month as far as it concerns worldwide pensions. Fortunately, or unfortunately (it depends which way you are looking at it) I do not fall into this taxable category.

fecherklyn comments on

I am not an expert but here are a few fundamentals as I understand them. "WTF is a World Tax?". No, it is not a "World"tax...what is being referred to is a form of taxation that is based on worldwide incomes and assets. This form of taxation is applied by many countries, including the USA and Colombia. "...a retired bum like me who goes and gets all nationalized". This matter has nothing to do with a persons nationality. What is fundamental is the person's place of residence for tax purposes. If you are an eskimo but you live in Colombia for more than 183 days in any one tax year YOU ARE SUBJECT TO COLOMBIAN TAX LAWS. If you are subject to Colombian tax laws (see above) but only have a temporary visa (because you have not lived in Colombia for more than 5 years) you are required to file a tax declaration if your COLOMBIAN SOURCE INCOMES & ASSETS are in excess of certain amounts. The fact you must file a tax declaration does not necessarily mean you will be liable to pay taxes. Taxation only commences once your incomes and assets exceed certain values. However, once a foreigner has been in Colombia for more than 5 years (and has a permanent visa) then his tax declarations must show his worldwide incomes and assets. It is then the worldwide incomes that are used to determine the tax rates that will be applied to the Colombian sourced incomes. Of course, thats what you are supposed to do. I understand there are fines and penalties available to the authorities in the event of non-compliance.

fecherklyn comments on

Ronrunrom, "I wonder how long it will take Colombia to implement a, new, special gringo tax on world income and property?" No need to hold your breath....it already exists. Once a foreigner has been resident in Colombia for more than 5 years he is assessed on worldwide incomes and assets unless he can claim the benefit of a double taxation agreement (and Colombia does not have many of those).

fecherklyn comments on Ecopetrol Plans to Sell $1.5 Billion of 10-Year Bonds

Johnny, What savings accounts are rendering 10..11% at present? I thought rates have come down quite a bit recently and most "reliable" banks are offering 6...7% maximum.

fecherklyn comments on Bancolombia has lost the AMEX code...

theflatline, "What is the difference between a Europe issued card and a US one? Aside from the currency?" As far as it concerns ATM withdrawals in Colombia the difference seems to lie in the "handling fees" charged by the issuing bank. I have researched this as far as one can as PBH posters often claim it is cheaper to bring money into Colombia by ATM withdrawals than by international bank transfers. My findings are as follows: EXCHANGE RATES: I have tried to compare the exchange rates obtained via ATM withdrawals and bank transfers on the same dates and find little difference. This surprised me as a number of PBH posters have claimed ATM withdrawals obtain better rates. I found no significant differences. HANDLING FEES: Here there is a difference between European cards and American cards. Whenever I have used my European cards to withdraw funds by ATM in Colombia EACH withdrawal has been subject to a handling fee deducted by the issuing bank in Europe. In the case of British cards the fee is GBP 2.5 per transaction. This soon racks up as it is difficult to find ATM's in Medellin which allow withdrawals in excess of 400,000 pesos. According to PBH posters many American cards charge NO HANDLING FEES. ADVANTAGE AMERICAN CARDS. As a consequence I have found no valid reason for holders of European cards to prefer ATM withdrawls over bank transfers whereas it may well be the case for holders of American cards.

fecherklyn comments on Transfer USD 50.000 to buy a house in Colombia and Formulario 4, etc

Haraldo, The difficulty in transferring funds into Colombia has been addressed comprehensively within the PBH forum over many years and the universal finding is to choose your bank carefully because although they all have to apply the same rules they frequently elect to apply them differently, often within different branches of the same bank. I note you appear to be using Citibank but also talk about eventually repatriating the funds to Europe. I have nothing against Citibank but why not consider a European bank? I have used HSBC Colombia in the past and they made the process far simpler than Citibank appear to be doing. I have never provided anything other than copies of my (source) bank statements and copies of my foreign tax declarations, salary slips.

fecherklyn comments on non-erotic massage in medellin

Asdfn, if you are serious try Instituto Lacross (Rehabilitacion del movimento, et ejercicio y el deporte) which is located in Loma Los Parra, tel.312 50 11. They are excellent and professional. A specialist doctor firstly examines your problem and then directs the treatment of physiotherapists and masseurs. Its not too expensive either.

fecherklyn comments on Offering Retirement planning and Wealth Management for expats- specializing in Offshore

Exactly Johnny....how much confidence can a potential investor have with "Offshoreadvisor" and the group he represents? And Offshoreadvisor, this is NOT a personal attack on you, it is the simple knee-jerk reaction to receiving investment advice from people we do not know. You said it.....the Financial Advisors' community are a motley crowd, many of whom have little in the way of useful credentials. The point is your initial "marketing" on this board was pretty representative of the blurbs issued by F.A 's everywhere; high claims but short on detail. I will not deny it is difficult to present your "business card" on such a board with the limited text that will retain many posters attention. However, this should not allow latitude for exaggerated and misleading claims. You have done much to vouch for the financial integrity of the investments you recommend but have provided little information regarding yourself and your group. "Headquartered in Spain" provides no special reassurance to potential investors and even seems to distance you from the financial security of the UK regulatory mechanisms you so rightly praise. I have personally successfully sued a previous Financial Advisor for "misselling", a result that was only possible because the F.A.'s professional conduct was governed by the Financial Services Commission of the locality where he exercised his business. This is the type of information that you need to disclose if you wish to reassure potential investors that you know your trade and compensation can be made available if you are negligent.

fecherklyn comments on Offering Retirement planning and Wealth Management for expats- specializing in Offshore

Sloop, Correct. I have invested in Jersey and Guernsey based mutual funds and I can assure everyone they are NOT guaranteed by the British Government. All financial institutions based in the Channel Islands are subject to the local Financial Commission and set their own levels of guarantees. These are NOT so high as those in the UK.

fecherklyn comments on Offering Retirement planning and Wealth Management for expats- specializing in Offshore

Offshoreadvisor, you state "All investments grow completely free of taxes" Be careful what you say unless you can substantiate it! To the best of my understanding ALL "Resident Foreigners" who have resided in Colombia for more than 5 years are obliged to declare their "Worldwide revenues and assets"IRRESPECTIVE of the country of their source. This is not an exceptional tax situation as assessing tax rates based on global revenues is quite common and used in most developped countries. The situation is further complicated in the case of Colombia as it has entered into virtually NO international "Avoidance of Double Taxation"agreements. At least, thats what I understand.

fecherklyn comments on Breakdown of Exchange rate UK Pounds & US Dollar to Colombian Pesos since May 1999

So what are the prospects for the US$ and sterling? This has been discussed so many times on PBH that it must be a record-holder...but it is a worthy subject as it tends to determine the financial status of so many of us AND the factors that determine the trends change frequently. For instance the Japanese Opposition Party said yesterday that if they came to power they would NOT purchase US Bonds denominated in US's but would accept bonds denominated in Japanese Yen. This announcement closely follows a similar warning from China.This I see as the expression of a mounting sentiment of countries who no longer want to take the RISK of American debt labelled in $'s. This must be very worrying for the USA in THE LONG TERM but they are probably happy enough to pursue a "weak dollar" policy for the moment until the world's economies improve. Similarly, the UK economy is in a very bad state and will have a debt problem for the generations to come. In my view the Colombian Peso will, at worst, maintain its value in the long term against both the US$ and Sterling as both currencies slowly but surely lose their dominant currency trading positions.

fecherklyn comments on Property questions

Pasty, elSapo is right in what he has said but don't panic, the authorities are after bigger fish than you and I I was threatened with a 200% fine but after much misleading exchanges of correspondance finally managed to get the matter elevated to an area of "responsibility". Once they knew the facts the matter was dropped. As to the difference in prices (Promesa de Compraventa or the Certificado de Tradición) just understand this is the Colombian standard which applies to just about everybody, govt officials included.It isn't "trying to cheat" , it is more a question of knowing which figure to use in the different formularios in daily use. About the use of Formulaio 4 & 11, as opposed to Formulario 5, I would recommend you to be fully conversant with RESOLUCION EXTERNA No. 8 DE 2000 (Mayo 5) - Por la cual se compendia el régimen de cambios internacionales. Everything we are discussing is initial legislated from these broad principles. However, it is complex and the use of a expert lawyer is recommended.

fecherklyn comments on Price information of some commodities

Johnny, I think you may have a good idea about the cheese imports but I think your choices stink (but this is not a bad idea if we are thinking french cheeses). Recommend you add Munster avec Cumin, Crottin Chavignil and Fleur de Maquis. For these I may not stride over naked sirens but I would be close behind you. But wait a minute...your English. What about Stilton?

fecherklyn comments on British pensions - crossed cheques

Ayudaingles, I would be hopeful it is not necessary for you to return to the UK simply to open a bank account. I have executed documents required by HSBC elsewhere in the world by having my signature witnessed by authorised officials of HSBC Colombia. Thus I would imagine the bank mandate and specimen signatures required for opening a bank account could similarly be completed here and sent by HSBC Colombia to the chosen bank branch in the UK. Give it a try.

fecherklyn comments on British pensions - crossed cheques

Ayudaingles, It is correct that UK State pensions are "frozen" (without annual indexation) for UK pensioners residing in Colombia and about 100 other countries. The matter was brought before the Council of Europe on the charge of discrimination in 2008 but rejected. An appeal has been lodged. Thus whilst your wife has a registered address as Colombia she will not get any increases. Providing a "false" address is an option but "take care" as the authorities are well aware of this dodge and make random controls. But are you sure your wife cannot open a bank account in the UK? The fact she is Colombian is not necessarily a strict veto. Why don't you contact HSBC in Colombia (they are in all the main cities) and explain your predicament. They may be able to give a recommendation to HSBC Group in the UK to open an account...or even find some mechanism whereby bank coordinates can be given to the UK Soc. Sec. and the funds directly transferred internally to your account in Colombia (even easier if you have an account with HSBC Colombia). Good luck.

fecherklyn comments on Colombia Realestate Fund for Investors

Makopp5, Sorry not to have answered earlier....I do not log into PBH every day. I have invested in this type of operation in Colombia and made good profits but the market has slowed down significantly recently. I could asnswer some of your questions but I am not an expert. PM me if you wish and I can give you the contact details of someone who really knows the business.

fecherklyn comments on Colombia Realestate Fund for Investors

Quite a few local realestate funds exist already. They usually take the form of the accounting/admin/reporting being undertaken by a Sociedad Fiduciaria and the shareholders being grouped under a "Contrato de Cuentas en Participacion (CEP). This structure obviates the need for the individual shareholders to create local companies and places most of the "paperwork" with specialists. You might want to take a look? Incidentally, your list of proposed investments does not include 'land", another asset I would recommend you consider.

fecherklyn comments on The dollar is going to disintegrate!!!!

Tasco, What China did (proposing something replace the US$ as the international reserve currency) is called "flying a kite". But never forget it takes at least a little wind to fly a kite!!!!!!!!!

fecherklyn comments on The dollar is going to disintegrate!!!!

Gringoloid, interesting graphs. I have never been a "chartist" but recognise their value as one of a number of factors one needs to take into account. I am particularly attentive to double "tops"/"bottoms" and breaching resistance levels in moving averages. For what its worth I suspect we are in a bear market rally with plenty of rainy days still to come.

fecherklyn comments on Another Form 4 Form 11 question that will set my mind at ease

Aztec, a very good post with which I agree on nearly every point. In particular I believe many posters on PBH who are interested on this subject are confusing the issue when discussing the "costs" that may be incurred. Everyone, Resident or Non-Resident, who used Forms 4 & 11 or Form 5 to bring money into the country will be liable to CGT TAX on asset sales in Colombia whether they take the sales proceeds out of the country or not. This is absolutely normal and is to be found in most of the world. The issue of FINES on the misuse of exchange control declarations is quite seperate. And finally, it is yet another seperate issue regarding whether or not foreigners holding funds in Colombia are FREE to send them out of the country. This is a BIG question as if any constraints were imposed on our ability to send money out of the country (after all taxes on it had been discharged) it would be a very negative factor in foreigners desire to invest/reside in Colombia. N.B. Venezuela has draconian exchange control regulations which mean extensive losses on disinvestment and it is imperative we know where Colombia stands on this issue. I may very well not get a reply to my letter to the BanRep...but at least I shall have made the effort.

fecherklyn comments on Where Officials See Fraud, Colombia’s Masses See a Folk Hero

Byron, I am curious to know why you posted this New York Times article without any comment from your part? Do you agree with what he has done? Are you convinced by this very one-sided story which tries to portray Murcia as some sort of latter day Robin Hood? Others have already pointed out the real ingredients of this fraudulent operation; greed and ignorance. I am not saying the Colombian government and local authorities have no blame; they should have recognised this scheme for what it was and acted earlier. Murcia's background gives some clues as to why he promoted this scheme. It is telling that he once hoped for an acting career, a route I would suggest he still covets given his allegations of rich v/s poor. In my view, the New York Times has not enhanced its reputation with this report.

fecherklyn comments on Another Form 4 Form 11 question that will set my mind at ease

Morrongo, My letter to the BanRep is being professionally translated at the moment (I can't trust my spanish) and I shall send it as soon as it is ready. It is my intention to share any reply with PBH. Lucid, you said "Form 4 is filed if you intend to take money out in the future and dont wish to be taxed on it ......". I don't see the taxation question like this. To my understanding the use of formulario 4 & 11 concerns exchange control....not taxation. If this is correct anyone who brought money into Colombia under form 4 to buy a property and subsequently sells that property must "repatriate" the funds under an "outwards bound" formulario 4 BUT THEY MUST SETTLE ANY TAX LIABILITIES ON THE SALES PROCEEDS FIRST. What I don't understand is if the tax liabilities (CGT) are the same for everyone?

fecherklyn comments on Another Form 4 Form 11 question that will set my mind at ease

Gringoloid, sounds correct to me based on my understanding of the exchange control laws. It also complies with my bank's (HSBC) understanding as they were the people who got me out of the mess I got into. For me the remaining big question is how do the use of forms 4, or 5, influence, if at all, a foreigner's freedom to take money OUT OF THE COUNTRY. In this context I am not talking about how funds are taxed but simply will BanRep put any conditions on our "repatriating" funds at a later date. I think there is no problem but I would like to be sure. So if anyone has any info on this aspect I would appreciate them letting us know. In any event, I am sending a letter to the BanRep asking them to formally clarify all these matters.

fecherklyn comments on Another Form 4 Form 11 question that will set my mind at ease

As I said Critter, the current legislation is a maze that NOBODY I know has been able to find their way out. For the most part our findings are not contradictory. It is only when we reach Artículo 2º. "Principio de igualdad en el trato" that problems arise. In this article the text "La inversión de capital del exterior en Colombia será tratada para todos los efectos, de igual forma que la inversión de nacionales residentes" clearly states their should be equality of treatment BUT it can also be understood to confirm the BanRep distinguishes between 2 types of "investment"; the investments made from "capital del exterior en Colombia" and "inversión de nacionales residentes". If the above is true and the legislation is INTENDED to differentiate between the 2 types of investment it will clarify the text of Artículo 4. El artículo 8 del decreto 2080 de 2000 which clearly states it is aimed at "El inversionista de capital del exterior" (I.e Does NOT relate to RESIDENTES). If this is the case your summary "IF YOU ARE A FOREIGNER MAKING A DIRECT INVESTMENT, YOU MUST FILE THE CORRECT FORM" would be incorrect as it should say "A Non-Resident making a direct investment must file the correct form". I know there are a lot of "ifs" and "buts" but it is the only way I can reconcile the legislative text I presented with the text you have submitted. That and of course the fact the BanRep threatened me (a foreigner having lived here for more than 6 months and thus a "Foreign Resident") with a fine of 200% of the amount of money I brought into the country for a property acquisition and declared on Form 4 rather than the Form 5 I was supposed to have used. I personally know another foreigner currently going through the same process. Critter, this is not a contest between us to see who is right and who is wrong. For me it is an obstacle course in trying to arrive at a finishing line of compliance with the law where the obstacles are represented by incompetance and lack of knowledge.

fecherklyn comments on Another Form 4 Form 11 question that will set my mind at ease

Gringoloid, This whole area is a minefield with very few people really knowing the subject. Robi was the person I know who knew it best. With regard the “Resident” v/s “Non-Resident” question I think it is clearly set out out in the following extracts: Contained in Circular Reglamentaria Externs DCIN – 83 http://www.banrep.gov.co/documentos/reglamentacion/cambiaris/ Numerales_DCIN-83/Compendio_numerales_DCIN83.pdf “Para calificar una operación como inversión de capital del exterior en Colombia se deberá tener en cuenta a la fecha de la inversión, que el inversionista cumpla la condición de no residente en el país. Se entiende por residente y no residente lo establecido en el artículo 2° del Decreto 1735 de 1993. From Decreto Numero 1735 de 1993 (septiembre 2) http://www.feriainvierteencasa.com/docs/decreto1735.pdf Articulo 2°. Definición de Residente Sin perjuicio de lo establecido en tratados internacionales y leyes especiales, para efectos del régimen cambiario se consideran residentes todas las personas naturales que habitan en el territorio nacional. Se consideran como no residentes las personas naturales que no habitan dentro del territorio. Tampoco se consideran residentes los extranjeros cuya permanencia en el territorio nacional no exceda de seai meses continuos o discontinuos en un periodo de doce meses.” Regarding the misuse of formularios it goes on to say in articulo 1.6: "1.6.Correcciones a las declaraciones La declaracion de cambio podra ser objeto de correcciones mediante el diligenciamiento de una nueva declaracion de cambio que se entregara a la misma entidad a la cual se presento la declaracion inicial. La correccion a una declaracion debera ser efectuada dentro de los quince (15) dias habiles siguientes a la fecha de la presentacion de la declaracion inicial y ante el mismo intermediario del mercado cambiario...... La declaracion que no se corrija dento de este periodo se entendera definitiva" Elsewhere, the legislation sets out the penalties (up to 200%) for infringing these rules.

fecherklyn comments on Another Form 4 Form 11 question that will set my mind at ease

Critter, you said on Feb 20, 2009, 07:06 (today): "If you used form 5, then all the money (all your money plus any profits made) would be taxed at 46%...400M X .46= 184.000.000/2.564=$71,762USD. This is why you need to use form 4, followed by 11" Firstly of course only "Non-Residents" (foreigners who have NOT resided in Colombia for more than 6 months) can use the Formulario 4 & 11 procedure to bring money into the country. Formulario 5 has to be used by Foreign Residents. But please state WHERE you got the information regarding taxation at 46% for foreign residents selling property acquired using formulario 5. The precise decree and article would be most helpful. And why do you think the tax would be applied on "all your money plus any profits made"? Even foreign residents who used formulario 5 have documentation showing the price paid for acquisition.

fecherklyn comments on Are Colombians 2nd class citizens?

Londoner, So if they do it...you reciprocate?

fecherklyn comments on

Ken, I think most of what you said is true and Colombia cannot hope to escape this worldwide recession. However, there are perhaps different shades of how badly Colombia will suffer. Take Venezuela and Colombia as examples. Venezuela is highly dependent on oil/product exports and (more importantly) has very little domestic manufacturing industry (Thus, it imports nearly all its consumer requirements). By contrast, Colombia is largely self-sufficient in its energy requirements and only concerned by crude oil prices to the extent of the relatively small amounts it exports. Also, because of Colombia's relative isolation from the world stage these last 40 years she has developped an industrial/manufacturing base that leaves it fairly autonomous (Thus it is less dependent upon imports of critical need). These difference ssuggest to me that although Colombia will suffer, it will not be the agonies experienced by certain others.

fecherklyn comments on Are Colombians 2nd class citizens?

Londoner, you are the living proof that persons from the same city do not necessarily share the same views. To you it would seem all Colombians can be categorised according to the worst associations of a country. On this basis, what image do you think the Colombians should have of the British? Cold, stand-offish, snobbish..........................................................

fecherklyn comments on Are Colombians 2nd class citizens?

Damien Manson (Newbie), Your very 1st post to TIM was as follows: "Colombians are the Mexicans of North America. Bang their women and put their men to work in the fields". Congratulations; your comment has reached the level of your carefully constructed double-barelled username.