Fugitive Tax-Slaves

How to Lose Friends, Citizens and Influence

"Imagine this: You were born in California, moved to New York for education or work, fell in love, married and had children. Even though you have faithfully paid taxes in New York and haven't lived in California for 25 years, suppose California law required that you also file your taxes there because you were born there. Though you may never have held a bank account in California, you must report all of your financial holdings to the State of California. Are you a signatory on your spouse's account? Then you must declare his bank accounts too. Your children must file their taxes in both California and New York and report any bank accounts they or their spouses may have." Continue reading →

Continue ReadingHow to Lose Friends, Citizens and Influence

Gibraltar tries to lure London hedge fund bosses with promise of low taxes

"Gibraltar is launching a campaign to persuade hedge funds to ditch their plush Mayfair offices for the low taxes of 'the Rock'. Last week hedge fund managers were invited to the peninsula where they were told income tax could be limited to £30,000 a year no matter how many millions they earned. Gibraltar also boasts no VAT and social security payments of just £120 per family a month. In the UK the top rate of income tax is 45%, VAT is 20% and national insurance is levied at 14% of weekly earnings above £797. Corporation tax on activities undertaken on the rock is levied at 10%, compared with 24% in the UK." Continue reading →

Continue ReadingGibraltar tries to lure London hedge fund bosses with promise of low taxes

Gibraltar tries to lure London hedge fund bosses with promise of low taxes

"Gibraltar is launching a campaign to persuade hedge funds to ditch their plush Mayfair offices for the low taxes of 'the Rock'. Last week hedge fund managers were invited to the peninsula where they were told income tax could be limited to £30,000 a year no matter how many millions they earned. Gibraltar also boasts no VAT and social security payments of just £120 per family a month. In the UK the top rate of income tax is 45%, VAT is 20% and national insurance is levied at 14% of weekly earnings above £797. Corporation tax on activities undertaken on the rock is levied at 10%, compared with 24% in the UK." Continue reading →

Continue ReadingGibraltar tries to lure London hedge fund bosses with promise of low taxes

Andorra bows to EU pressure to introduce first-ever income tax

"Antoni Marti, the head of government of the tiny mountain nation, announced the move on Friday during a Paris meeting with French President Francois Hollande. A bill would create a tax on personal income as part of an effort to 'progressively bring its tax system in line with international standards'. There is currently no income tax applied to individuals based in Andorra, but the country did introduce a modest corporate levy for the first time last year and a system of Value Added Tax from January 2013. Andorra, with its population of 85,000, has relied on banking secrecy, tourism and duty-free trade to become a financial and commercial success." Continue reading →

Continue ReadingAndorra bows to EU pressure to introduce first-ever income tax

Final Score: Dwight Howard 8,000,000 – Jerry Brown 0

"A state nurse getting $331,000 of annual compensation; A county administrator getting $423,000 pensions; A state psychiatrist getting $822,000 of annual compensation; Cops that get $188,000 of annual compensation; A city manager getting $800,000 of annual compensation. But overpaid bureaucrats are not the only problem. California politicians are experts at wasting money in other ways, such as the supposedly high-speed rail boondoggle that was supposed to cost $33 billion and now has a price tag of $100 billion." Continue reading →

Continue ReadingFinal Score: Dwight Howard 8,000,000 – Jerry Brown 0

The European Parliament’s Pro-Tax Politicians Should Go After their Own Tax-Protected Salaries

"What’s the most noxious example of hypocrisy from the political class? Our old friend Dan Hannan from the European Parliament has another contestant. His tax-hungry colleagues (like their American counterparts) are bashing Apple, Google, and other multinationals for legally minimizing their tax burdens. Yet as Dan explains, parliamentarians from 24 out of 27 nations get a sweetheart deal and pay a very low flat tax. But I must say none of these examples of hypocrisy can compete with the bureaucrats from the OECD and IMF, both of whom get completely tax-free salaries while pushing for higher taxes on the rest of us." Continue reading →

Continue ReadingThe European Parliament’s Pro-Tax Politicians Should Go After their Own Tax-Protected Salaries

US blocks G20 crackdown on tax avoidance by net firms like Google and Amazon

"Senior officials in Washington have made it known they will not stand for rule changes that narrowly target the activities of some of the nation's fastest growing multinationals. The OECD plan has been billed as the biggest opportunity to overhaul international tax rules since a framework for bilateral tax treaties was first established after the first world war. In the case of Google, in 2011 French tax officials demanded €1.7bn (£1.47bn) in back taxes. Google settled the case, agreeing to paying €60m. The French president, François Hollande, said it was 'a model for effective partnership and is a pointer to the future in the global digital economy.'" Continue reading →

Continue ReadingUS blocks G20 crackdown on tax avoidance by net firms like Google and Amazon

French crackdown on tax cheats ‘to accelerate’

"He added there would be no amnesty for those with hidden bank accounts in Switzerland, the wealthy Alpine nation long accused of protecting the privacy of its clients over obligations to tax authorities in other nations. The finance minister's remarks came in the wake of a deal signed on Thursday in Paris between the countries that means inheritances will be taxed where the recipient, rather than the deceased, is living. The minister stressed he had no desire to harass the Swiss, over bank secrecy, but said he wished the country might become 'more European' and less isolated in its outlook." Continue reading →

Continue ReadingFrench crackdown on tax cheats ‘to accelerate’

British MPs urged to reject contentious tax pact with the US

"FATCA critics argue that it is expensive and burdensome for foreign financial institutions to implement, that it is a form of US imperialism, that it could damage delicate international relations and trade agreements, that it is in direct conflict with many foreign laws, and, crucially, that it would compromise America’s economy as it would dramatically reduce foreign investment in the US, threatening American jobs. In addition, FATCA, its opponents insist, would do little if anything to catch tax evaders, which is purportedly its primary objective." Continue reading →

Continue ReadingBritish MPs urged to reject contentious tax pact with the US

Tax compliant Americans abroad with a principal residence or mutual funds should renounce citizenship

"It has become clear for U.S. citizens abroad that the only thing worse than NOT being tax compliant is BEING tax compliant. The cost of U.S. tax compliance is that your U.S. citizenship will disable you from effective financial and retirement planning. The reason is that the U.S. considers most non-U.S. investment vehicles to be PFICs. The sale of your principal residence will be subject to a capital gains tax. Furthermore, the additional “Obamacare taxes” imposed on investment income will make the situation worse. If you you own a principal residence or a non-U.S. mutual fund and you sell it all the gains (and possibly more) will be confiscated." Continue reading →

Continue ReadingTax compliant Americans abroad with a principal residence or mutual funds should renounce citizenship