ISLAMABAD: The US authorities have made direct contacts with Pakistani commercial banks to seek data of account holders of their nationals in a bid to comply with their law known as the Foreign Account Tax Compliance Act (Fatca), The News has learnt. However, the Nawaz Sharif government has taken a… – Continue reading
Houston: Preparer Diane Caldwell Larry has pleaded guilty to falsifying client returns. During her plea hearing, she admitted that while operating Paradise South Tax Services she prepared 33 materially false client returns for tax years 2007 through 2010. Those returns generated excessive refunds and cost the IRS some $168,792. Larry… – Continue reading
Ingersoll-Rand (IR) is a great American success story. Founded 143 years ago by a Connecticut farmer who invented a steam-powered rock drill, the company made tools that carved out the Panama Canal and shaped Mt. Rushmore. More recently it’s become a leader in energy-efficient air conditioners: Ingersoll-Rand’s Trane unit has… – Continue reading
Another day. Another inversion. This one, though, with a twist. On Tuesday evening, U.S.-based Salix Pharmaceuticals Ltd.SLXP -1.52% announced plans to merge with a unit of Cosmo Technologies Ltd.’s and take up residence in Ireland for tax purposes. What makes this different from a typical inversion deal is the fact… – Continue reading
Lawyers for convicted tax evader Ty Warner said his sentence of two years’ probation was reasonable, pointing out that the punishment of the Beanie Babies billionaire was consistent with more than half of the offshore banking cases that the government has prosecuted, according to a court filing Thursday. Last October,… – Continue reading
On Friday, 27 June 2014, the Irish Revenue Commissioners (in conjunction with the Department of Finance) finalised the relevant Regulations with respect to FATCA. These Regulations will come into operation on 1 July 2014. As readers will be aware, the Irish and US Governments signed an intergovernmental agreement (“Irish IGA”)… – Continue reading
A Winnipeg auto-financing company has been slapped with a large fine for years of tax evasion. Barbara Reimer Auto Financing Ltd. was fined $152,000 in provincial court this morning. Barbara Reimer, as director of the company, entered guilty pleas on its behalf to Income Tax Act violations for evading paying… – Continue reading
The international boundary that divides the United States and Canada is the longest international border on Earth, and many communities and businesses have interests lying on both sides. The shared border facilitates the largest trade relationship between any pair of countries in the world. It is therefore unsurprising that Americans… – Continue reading
A lot of Americans are moving out of the homeland, getting rid of their American citizenship and with it a whole lot of tax. The American system of Worldwide tax and FATCA levied on the citizens is one of the driving forces for this shift. The IRS collects taxes from… – Continue reading
Tax Since the 1970s, U.S. taxpayers with foreign banks accounts have been required to annually report their foreign bank account information to the Department of Treasury on a Report of Foreign Bank and Financial Accounts (“FBAR”) by June 30th of each year. In addition to requiring the filing of an… – Continue reading
The recently enacted FATCA makes it mandatory for Indian tax authorities to share information about earnings of NRIs in US. However both India and US have a treaty signed to avoid double taxation. NRIs living in US can certainly benefit from this treaty The US government has recently enacted Foreign… – Continue reading
DETROIT — Delphi Automotive plc is in the crosshairs of a battle between the IRS and many large American companies over the use of offshore tax shelters. Delphi is the latest corporation in dispute with the federal government over its tax practices. The IRS notified the supplier last month it… – Continue reading
The long awaited instructions for Form W-8BEN-E, Certification of Foreign Status of Beneficial Owner for United States Tax Withholding (Entities), were finally posted on the IRS website on June 24, 2014. Form W-8BEN-E will now be the most common form to be used by foreign entities to certify their status under both (i) Chapter 3 of… – Continue reading
‘A court challenge is being prepared’Tim Harper Other news Rants & Raves Feral cat group’s efforts far from misguided Walker found digital camera near Sydney River Morrison, MacIntyre among country’s best at nationals UPDATED: Chow finishes tied for third, McKinnon tied for fifth at men’s amateur (Rowdy) Ronda Rousey’s UFC… – Continue reading
WASHINGTON — The IRS is about to get an unprecedented look at bank accounts and investments U.S. citizens hold abroad, through a law that is making it harder to hide assets from the tax collector. The government started imposing 30 percent taxes on many overseas payments to financial institutions that… – Continue reading
The British Virgin Islands (BVI) government entered into its twenty-sixth tax information exchange agreement (TIEA) with the Government of Japan on 18 June 2014. This new TIEA is not present in force but will enter into force on the thirtieth day after completion of the domestic implementation procedures by both… – Continue reading
South Carolina property owners who rent their homes to vacationers will face more tax-related scrutiny under one new state law, but some could see big tax savings under another new law. The impacts will mostly play out in beach communities where such rental properties are plentiful. The added scrutiny, which… – Continue reading
Walgreen Co. is at a crossroads, but it may not be “at the corner of happy and healthy” as its advertising slogan suggests. The nation’s largest drugstore chain is considering a move that would allow it to significantly cut its tax bill and increase profits. But it’s being painted by… – Continue reading
Rich Chinese, watch out. The growing arm of U.S. tax authorities appears poised to also help China obtain information about Chinese taxpayers in the U.S., a move that could make it harder for Chinese to move large sums of money out of the country. As the WSJ’s Wei Gu reports:… – Continue reading
The Cayman Islands Banking Association (CIBA) says almost 15,000 of Cayman’s financial institution have registered with the Internal Revenue Service (IRS) in the United States. This, ahead of the Unites States Foreign Accounts Compliance Tax Act (FACTA), that will take effect on Tuesday. CIBA says many of the 14,800 financial… – Continue reading
Here’s a question for investors in any big U.S. corporation with foreign operations: Do you know what the company’s tax bill would be if it had to bring its overseas earnings home? The answer, alas, is that they probably don’t. That’s because most companies with large foreign earnings don’t disclose… – Continue reading
Lawyers from the United States have been advising the Island’s financial services sector how to prepare for in-depth tax investigations. They spoke at a global tax enforcement conference organised by Douglas legal firm Dougherty Quinn at the Villa Marina (3 July). Its aim is to prepare service providers, banks and… – Continue reading
Deal Allows U.S. to Enforce its Foreign Account Tax Compliance Act, or FACTA JERUSALEM—Israel has joined 80 other countries in signing an agreement with the U.S. government on fighting offshore tax evasion, the Israeli finance ministry said Wednesday. According to the agreement, Israel’s tax authority will submit information on local… – Continue reading
The BVI Government has signed a Model 1B (non-reciprocal) Intergovernmental Agreement (IGA) in relation to the US Foreign Account Tax Compliance Act (FATCA), it was announced on 30 June 2014. It was announced in March this year that negotiations had been concluded with the US and later in April the… – Continue reading
AUSTIN, Texas–(Business Wire)–TEL OFFSHORE TRUST announced that there will be no trust distribution for the second quarter of 2014 for unitholders of record on June 30, 2014. The Trust has not been able to make a distribution to unitholders for twenty-two consecutive quarters, or since January 9, 2009. Except as… – Continue reading
Spain signed an agreement with the Dominican Republic to avoid double taxation of individuals and companies that are subject to levies in both nations. The accord, published today in the Spanish government’s Official Bulletin, allows income tax paid in one nation to be deductible in the other nation from income… – Continue reading
Sweeping rules aimed at stopping tax evasion took effect on Tuesday, ushering in a new system that Obama administration officials say will leave tax cheats with fewer havens overseas. The Foreign Account Tax Compliance Act, one of President Obama’s initiatives for fighting offshore tax evasion, is arriving after multiple delays,… – Continue reading
The 2010 Foreign account tax compliance act represents a significant initiative by the United States to tackle offshore tax evasion. But it has not been popular with Chinese authorities, especially the banking sector, in part because it was considered an extra burden. Why should it obligate itself to do such… – Continue reading
A White Plains federal grand jury has indicted state Sen. Thomas Libous, R-Binghamton, on a charge of lying to federal agents, and his son, Westchester County attorney Matthew Libous, on charges of tax evasion, it was announced Tuesday. Thomas Libous, who represents a district that includes Broome, Chenango, Delaware and… – Continue reading
Having resolved his tax fraud with an $11.5 million payment, local businessman John Gizzi almost landed himself in prison last month by attending a Republican Party barbecue. “You’re seen as the millionaire who walked away with a probation sentence and bought himself out of federal prison,” U.S. District Judge Frank… – Continue reading
The federal first-time homebuyer tax credit programs expired near the end of 2011, but there is still tax help out there depending on the state or county where you live. For example, states such as Delaware, Texas, Kentucky and many more states have local homebuyer tax credit programs that you can take advantage of. Other… – Continue reading
A federal appeals court has upheld the tax-evasion conviction of a once-influential Chicago Democrat. Monday’s 26-page ruling from a three-judge panel is at least partly academic. Last month, former Cook County Commissioner William Beavers completed his six-month prison term for failing to declare campaign cash he used to gamble. His… – Continue reading
The Bank of N.T. Butterfield & Son Limited Chairman & CEO Brendan McDonagh commented on the implementation of the Foreign Account Tax Compliance Act [FATCA] in Bermuda and the Cayman Islands. FACTA imposes due diligence, information reporting and control obligations on non-US financial institutions for certain US persons who maintain… – Continue reading
When Canada’s banks reopen for business on July 2, they will begin formally operating as informants for the United States Internal Revenue Service — the IRS. Financial institutions in Canada will be required to ask all new and existing clients opening a new account questions such as where they were… – Continue reading
Just days before the Foreign Account Tax Compliance Act’s entry into force, China and the United States initialed a model one intergovernmental agreement (IGA) on June 26, 2014, to simplify the process for financial institutions in both territories to provide relevant information to support tax enforcement activities under the Act…. – Continue reading
President Obama yesterday signed into law a bill which contains little-publicised elements that are expected to impact non-US financial institutions, funds and collective investment structures. The bill’s passage on 8 March 2010 represents a success for certain US lawmakers who have been seeking to crack down on Americans who have… – Continue reading
SAN DIEGO (CNS) – A San Diego tax attorney and certified public accountant was convicted Monday in a complex tax-evasion scheme involving the creation of bank accounts in the names of dead children and fake churches. A federal jury deliberated for 30 minutes before finding Lloyd Irving Taylor, 71, guilty… – Continue reading
ATLANTA (AP) – Federal prosecutors say a metro Atlanta business owner has been sentenced for trying to block the IRS from collecting millions in employment taxes. Authorities said Monday that 68-year-old Paulette Bryant of Stockbridge has been sentenced to three years in prison for obstructing the IRS from collecting nearly… – Continue reading
Andrea Bonzano, head of tax at Fiat, discusses the pros and cons of different transfer pricing methods in an interview with TPWeek, and provides his views on BEPS and US inversions. Bonzano has expressed his views on some of the most topical transfer pricing issues, discussing his concerns over BEPS… – Continue reading
Washington – US tax evaders will find it harder to hide money abroad from Tuesday, when a law comes into effect requiring foreign banks to report their offshore accounts. Banking centers like Switzerland and Luxembourg that agreed to the US Foreign Account Tax Compliance Act (FATCA) will have to begin… – Continue reading
Qualifying Recognised Overseas Pension Schemes (QROPS) are becoming increasingly popular in America, due to the loophole represented by a double-tax treaty signed with Malta – a country in the top three jurisdictions of choice since QROPS were introduced. Previously it was largely viewed as near-impossible to arrange for a viable,… – Continue reading
The agreement between China and the United States for US financial accounts registered at banks in China to send their tax reports to the US Internal Revenue Services (IRS) to curb offshore tax evasion will have positive effects for China, experts said. The agreement will also enable Beijing to obtain… – Continue reading
NEW YORK (AP) — A Chicago-area lawyer and accountant labeled by the government as history’s most prolific and unrepentant tax cheat was sentenced Wednesday to 15 years in prison, and the judge bemoaned the “incredible greed” of some of America’s wealthiest people for taking advantage of the tax shelters he… – Continue reading
Mumbai: The Reserve Bank of India (RBI) has said India and the US have agreed to implement a foreign tax compliance law and asked banks and financial institutions to register by this year-end to report accounts and assets held by US citizens. India and the US have agreed to implement… – Continue reading
Are you an American resident? It’s a question that Canadian “snowbirds” will have to ask themselves before celebrating Canada Day next week, when the U.S. Foreign Tax Compliance Act – or FATCA – kicks into effect. Financial institutions around the world will answer to the U.S. Internal Revenue Agency so… – Continue reading
This week one of the key Democratic Party strongholds voted to reduce income taxes and expand the sales tax base. The District of Columbia Council, which in 2012 supported President Barack Obama over challenger Mitt Romney by a wide margin of 13 votes to 1 (in a city where 90.9… – Continue reading
Mainland China has been included on a list of jurisdictions co-operating with the United States on a new law to halt tax evasion. It removes the threat of blacklisting or penalties that had been hanging over Chinese financial institutions. The inclusion will also benefit institutions in Hong Kong, the US… – Continue reading
Are you an American resident? It’s a question that Canadian “snowbirds” will have to ask themselves before celebrating Canada Day next week, when the U.S. Foreign Tax Compliance Act – or FATCA – kicks into effect. Financial institutions around the world will answer to the U.S. Internal Revenue Agency so… – Continue reading
Former attorney and CPA Paul M. Daugerdas, 63, has been sentenced to 15 years in prison for orchestrating a massive scheme in which he and co-conspirators hawked fake tax shelters for wealthy individuals to evade more than $1.6 billion in federal taxes. Last October, he was convicted following a seven-week… – Continue reading
Law360, Los Angeles (June 25, 2014, 10:42 PM ET) — Russia’s upper house of parliament reportedly approved legislation Wednesday that would allow Russian banks to share information about their foreign clients with the U.S., so the banks can comply with the Foreign Account Tax Compliance Act, despite the Russian government’s… – Continue reading
