Fugitive Tax-Slaves

Will Canada’s hard line on Eritrea’s ‘diaspora’ tax apply to the U.S.?

"There are only two countries in the world that levy income tax based on citizenship rather than residence; one is Eritrea and the other is the United States. But while Canada fulminates and threatens mayhem against Eritrea, it says nothing about the U.S. Even worse, it is actively negotiating with the U.S. to implement an intergovernmental agreement (IGA) that would have Canada Revenue Agency help the U.S. IRS track down its citizens in Canada and bring them into the U.S. tax fold. Could it be the power gap?" Continue reading →

Continue ReadingWill Canada’s hard line on Eritrea’s ‘diaspora’ tax apply to the U.S.?

Swiss government agrees to settle tax evasion dispute with US

"The Swiss federal government has accepted a United States demand to settle a dispute over the alleged complicity of Swiss banks in tax evasion by Americans that will reportedly cost the banks billions of francs. Swiss media have reported that the overall figure could hit 10 billion francs ($10.3 billion). 'If a bank has done a lot of business involving undeclared American funds, it will be a big problem for it,' Finance Minister Eveline Widmer-Schlumpf said. She indicated that the Swiss government had been presented with a take it or leave it offer by Washington. 'It was a unilateral offer, one that we couldn't negotiate,' she said." Continue reading →

Continue ReadingSwiss government agrees to settle tax evasion dispute with US

Rand Paul Defends Apple Tax Avoidance Against Homeland Security Subcommittee

"Sen. Rand Paul attends the Homeland Security and Government Affairs Subcommittee hearing that called for executives of Apple to testify on the companies tax practices. In the hearing, Sen. Paul defended the job-creating efforts Apple has made and lambasted his fellow Members for perpetuating a U.S. tax code that hinders corporate growth and productivity." Continue reading →

Continue ReadingRand Paul Defends Apple Tax Avoidance Against Homeland Security Subcommittee

IRS targets First Caribbean International Bank thanks to ‘voluntary disclosure’ program

"A witness statement filed in support of the summons by IRS agent Cheryl Kiger details how, during her investigation into a leak of offshore data, she came across information suggesting FCIB and Barclays accounts may have been used by tax evaders. Kiger also disclosed information obtained from a programme allowing individuals who have previously evaded US tax to voluntarily disclose this information and receive less stringent penalties. She identified at least 129 such cases which had involved the use of bank accounts with FCIB 'its predecessors in the Caribbean'." Continue reading →

Continue ReadingIRS targets First Caribbean International Bank thanks to ‘voluntary disclosure’ program

Invest Like a Euro Zone Refugee

"The world is now witnessing a new refugee movement … but it’s not happening where you might think. These new refugees are not fleeing a war-torn province, or trying to escape from under the boot of a tyrant. They don’t need government aid. And they aren’t physically leaving their homes… Rather, these refugees are Italians, and they are fleeing their banks and their economy. Valter Badariotti, a banker with two small children, is one of the euro zone refugees. So is filmmaker Franco Fracassi. Both are worried about Italy’s economic deterioration and political morass. Sound familiar? It should … because it’s not far from what’s happening in the U.S." Continue reading →

Continue ReadingInvest Like a Euro Zone Refugee

Nigel Farage Bashes Tax-Advantaged Hypocritical European Politicians

"If we look at the EU officials who work for the European Commission and the European Parliament, the highest category [the most common grade is AD12] are people that earn a net take home pay of just over 100 thousand pounds a year. And yet under EU rules they pay tax of 12 per cent. It is tax fraud on an absolutely massive scale. And Mr Barroso I would say to you, how can that be deemed to be fair? How can people out there struggling - the 16 million people unemployed in the eurozone - how can they look at these institutions, not only paying people vast sums of money but allowing them tax and pension benefits on a scale not seen anywhere else in the world?" Continue reading →

Continue ReadingNigel Farage Bashes Tax-Advantaged Hypocritical European Politicians

Swiss banks face massive fines over Americans’ untaxed bank accounts

"Swiss banks holding US citizens’ funds that are not declared to American tax authorities are set to have to pay a massive fine, under a deal between Switzerland and Washington, a newspaper reported Wednesday. The Swiss daily Neue Zuercher Zeitung, quoting sources familiar with the talks, said that the fine could reach 40 percent of the funds in question. Swiss media have reported that under a compromise hammered out by negotiators, the 300 banks in Switzerland would be classed according to their level of alleged complicity in tax evasion. The dozen banks seen as the main perpetrators would reportedly be forced to make a case-by-case deal with the United States." Continue reading →

Continue ReadingSwiss banks face massive fines over Americans’ untaxed bank accounts

The IRS War on Medical Marijuana Providers

"The IRS employs Section 280E, a 1982 addition to the tax code that was a response to a drug dealer's successful effort to claim his yacht, weapons purchases, and even illicit bribes as business expenses. Under 280E, individuals involved in the illicit sale of controlled substances -- including marijuana, even medical marijuana in states where it is legal -- cannot claim standard business expenses on their federal taxes. Oakland's Harborside Health Center was hit with a $2 million IRS assessment in 2011 after the tax agency employed Section 280E against it. Similarly, when the feds raided Oaksterdam University, it wasn't just DEA, but also IRS agents." Continue reading →

Continue ReadingThe IRS War on Medical Marijuana Providers

The Digital Trap in your Offshore Plan

"It is concerning to see people contacting their offshore lawyers, real estate agents, investment professionals, bankers, etc. using their Gmail, Yahoo, or Hotmail account. Even more concerning is how many offshore professionals were using these free US email accounts themselves. When I told these providers that US law enforcement authorities could access any emails over 6 months old without a warrant in any US-based email account, they were, by and large, surprised. Many discussions took place on how to help protect themselves and their customers by moving their email communications offshore, just like other services." Continue reading →

Continue ReadingThe Digital Trap in your Offshore Plan