Fugitive Tax-Slaves

Swiss banks to divulge names of US account holders, pay billions in fines

"About a hundred Swiss banks will avoid prosecution by divulging the names of US clients who have allegedly avoided tax by using secret accounts. The banks could face fines of up to 50 percent of the asset value if they provide full disclosure. Under the deal, each bank will set its own non-prosecution or deferred-prosecution agreement with the US authorities. The fines are set to reach up to 50 percent of the aggregate value of any undeclared accounts held by wealthy Americans, depending on the time the accounts were opened. Swiss banks will have to assess the cost of potential penalties versus the risk of US prosecution." Continue reading →

Continue ReadingSwiss banks to divulge names of US account holders, pay billions in fines

‘Sovereign citizen’ movement, 30,000 strong, worrying Canadian officials

"There have been a number of 'hard take-downs' by police in B.C. involving Freemen who refuse to have a driver’s licence and, sometimes, automobile insurance. Dozens of sovereign citizens have found themselves in front of a judge facing tax evasion, contempt or criminal charges. Last month, Warren Fischer, a practitioner of traditional Chinese medicine in Nelson, B.C., broke down in tears in court after being convicted of tax evasion. An adherent to Freeman philosophies and a member of the Sovereign Squamish Nation, Fischer refused for several years to pay income tax, saying he did not want his taxes to support the war overseas. He will be sentenced in October." Continue reading →

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Fleeing Oppression

"The mayor of Los Angeles has declared a 'state of emergency'. Hollywood’s movie industry is being ceded to other states and countries whose favorable tax 'credits' are increasingly luring away movie and television production. As competition both in the US and abroad continues to grow, the state’s market share and longtime stronghold on production jobs and spending are fast evaporating. The main problem is taxes. California’s government has so destroyed the state that its only option to keep afloat is a continued rise in taxes. In response, people with money have been fleeing the state for other states. New York and California have lost the most in the last decade." Continue reading →

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Finally, a reasonable newspaper article on why people renounce citizenship

"'Wages in the United States are low and many hard working people struggle to afford life’s basic necessities. Other burning issues include a degrading public health system, a half-dead retail sector and an arguably chaotic political environment … Americans who have relatives and friends outside of the United States are choosing to renounce their U.S. citizenship and relocate to countries with better economies.' Oh wait, I seem to have inadvertently misquoted the article. We at the Isaac Brock Society deeply regret this editing error. It’s actually talking about the reasons why citizens of Botswana renounce." Continue reading →

Continue ReadingFinally, a reasonable newspaper article on why people renounce citizenship

It’s Official: New OVDP program designed for Swiss Banks

"The U.S. is clearly on a mission to confiscate assets throughout the world. In the beginning, there was OVDP for individuals. Now we have OVDP for banks. Coming soon, OVDP for financial advisors. Soon, we will all become Whistleblowers. The solution to this is for the U.S. to simply absorb all the other sovereign nations of the world. Once we become one country, there will be no more 'offshore accounts'. But, how would fines be imposed then? Conclusion and message to U.S. citizens abroad … You better enter OVDP before your bank does!" Continue reading →

Continue ReadingIt’s Official: New OVDP program designed for Swiss Banks

Non-American spouse of American abroad narrowly avoids becoming a U.S. person

"In February 2013, an IRS examiner combing over the couple’s return wanted to know whether the wife’s act of submitting a 'married filing jointly' Form 1040 had accidentally turned the husband into a U.S. person, even if they had not explicitly made a § 6013(g) election for a nonresident alien spouse to be treated as a resident alien for tax purposes. Such treatment would saddle him with an obligation to file Form 3520 on what the IRS hilariously calls 'foreign trusts' and what the husband probably thinks of as 'my local & fully-tax-compliant retirement account' — and since the would-be joint return apparently didn’t include any 3520s for him, the couple would have been subject to penalties." Continue reading →

Continue ReadingNon-American spouse of American abroad narrowly avoids becoming a U.S. person

The negative value of US citizenship

"It’s much easier to travel the world on a US passport than it is on a passport from, say, Syria, or Bangladesh — but, that said, there are countries which really don’t like admitting Americans, and if you already have a passport from Canada, or the EU, then you’re going to find it just as easy to travel as you would if you had one from the US. A green card holder can leave the US at any time, give up her green card, and thenceforth never have to pay a cent in US taxes, or even file a US tax return, ever again. This is an option which would be valued extremely highly by many Americans. By becoming a US citizen you essentially give up that option, as the likes of Eduardo Saverin have learned to their cost." Continue reading →

Continue ReadingThe negative value of US citizenship

Swiss banks face hefty fines under US tax deal

"The deal offers individual Swiss banks the opportunity to avoid US prosecution if they agree to pay 'substantial fines', disclose all of their cross-border activities, provide details on the accounts of US citizens, and give information on the sources and destinations of transferred funds in relation to secret American accounts. Each bank will set its own non-prosecution agreement or deferred-prosecution agreement with the US authorities under those terms. The fines will be assessed at 20-50 percent of the aggregate value of any undeclared accounts held by Americans, depending on the time they accounts were open — before 2009 or since then." Continue reading →

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Foreign Retirement Plans Seen Scrutinized in U.S. FATCA Effort

A U.S. tax crackdown is coming for foreign retirement plans. The U.S. has been pushing banks and individuals to report overseas assets, making it tougher to hide money abroad with new rules and penalties rolling out under the 2010 Foreign Account Tax Compliance Act, known as Fatca. The next wave of scrutiny will cover retirement accounts, Bloomberg BNA reported. “The retirement community has been a little slower to catch up,” said Russell E. Hall, a senior consultant at Towers Watson. Foreign retirement plans generally must agree to report their U.S. account holders to avoid a 30 percent withholding tax on U.S.-sourced interest, dividends and proceeds from the sale of securities beginning July 1. Global companies with programs overseas will need to catalog their funded retirement plans to figure out which ones may be exempt, Hall said. Continue reading →

Continue ReadingForeign Retirement Plans Seen Scrutinized in U.S. FATCA Effort

France adds Jersey, Bermuda to tax-haven blacklist

"France has added Jersey, Bermuda and the British Virgin Islands to its list of uncooperative tax havens. The entry gave no reason for the move. According to data compiled by the French government through to August 2011, Jersey and Bermuda had responded to all French requests for information. The British Virgin Islands had responded to 31 out of 41 requests. Tax has always been a sensitive issue for France, which has among the highest tax takes in the developed world, but President Francois Hollande has been under pressure to regain the initiative after the embarrassing resignation of his budget minister this year over a secret Swiss bank account." Continue reading →

Continue ReadingFrance adds Jersey, Bermuda to tax-haven blacklist