Category: North America

Caterpillar Dodged Billions in Taxes for Over a Decade

Caterpillar, industrial and construction equipment manufacturing Goliath, has been avoiding or deferring paying U.S. taxes for at least 13 years to the tune of approximately $2.4 billion, according to a report from the Homeland Security & Government Affairs Permanent Subcommittee on Investigations. “Tax evasion schemes rob the system of billions of… – Continue reading

Close Loopholes, Fix Potholes

If Washington closes offshore tax loopholes, we can fix many of our infrastructure problems and create new jobs. America has an infrastructure crisis. We see signs of it every day: We hit bone-jarring potholes as we drive. We face long detours as bridges are closed for emergency repairs. When water… – Continue reading

SUPPLEMENTARY OVERSEAS PENSIONS MAY OFFER FATCA SOLUTION

More than three-quarters of US expatriates with supplementary overseas pensions contracts say they won’t renounce their citizenship to escape the Foreign Account Tax Compliance Act (Fatca). The result, from a survey by financial adviser deVere Group of 361 of its own clients, suggests the supplementary overseas pension contract may stem… – Continue reading

Goldman Sachs fears risks if rivals BNP Paribas and Credit Suisse plead guilty to violating sanctions, abetting tax evasion

The head of US bank Goldman Sachs has warned that guilty pleas from rivals BNP Paribas and Credit Suisse, under legal proceedings in the United States, could hurt the financial system. The two European banks, under probes for violating US sanctions and abetting tax evasion, are potentially facing very heavy… – Continue reading

Ma promises to resign if subject to taxes in States

Next Magazine yesterday released a report claiming that the president has to pay taxes to the U.S. under the Foreign Account Tax Compliance Act (FATCA), saying that Ma is poised to turn himself into an “international laughingstock” by becoming the first R.O.C. president subject to U.S. taxes. That the president… – Continue reading

FATCA update: Australia signs inter-governmental agreement with the U.S

On 28 April 2014, the Australian Government signed an agreement (the intergovernmental agreement) with their U.S. counterparts that will greatly assist Australian financial institutions that must comply with the requirements of the Foreign Account Tax Compliance Act (FATCA) legislation, enacted by the U.S. Government. The FATCA regime is, at its core,… – Continue reading

FEDS SHOULD IMPLEMENT FATCA LAW, SAYS IIAC

Ian Russell, president and CEO of the Investment Industry Association of Canada (IIAC), today urged members of the House of Commons Standing Committee on Finance to recommend approval of Bill C-31 at the earliest opportunity, which is necessary to implement the provisions of the United States Foreign Account Tax Compliance… – Continue reading

April push fails to deliver fully signed IGAs for Fatca

Despite a push to obtain agreements with foreign governments through April, the US Treasury’s own website notes the large number of outstanding Intergovernmental Agreements yet to be implemented fully around the Foreign Account Tax Compliance Act (Fatca). So-called IGAs are critical for the success of the US Foreign Account Tax… – Continue reading

Don’t delay law for sharing tax information with U.S., Canada’s investment industry urges

The head of Canada’s investment industry association is urging the federal government not to defer legislation that will facilitate handing tax information of U.S. citizens living in Canada to authorities in the United States. Ian Russell, chief executive of the Investment Industry Association of Canada, made his pitch to the… – Continue reading

Puerto Rico Pours On Tax Incentives For Investors

Puerto Rico’s tax incentive acts are tailor-made for traders, investors, investment managers and financial institutions. Enacted in 2012, Puerto Rico’s Act 22 allows investors and traders with bona fide residence in Puerto Rico to exclude 100% of all short-term and long-term capital gains from the sale of personal property accrued… – Continue reading

Russian banks will be able to provide information under FATCA statute

MOSCOW, May 14 (RAPSI) – The Russian government has approved a bill to allow Russian financial institutions to provide information about US taxpayers and to oblige foreign financial institutions to report Russian taxpayers to Russia’s Federal Tax Service, reads a statement on the government’s website. The bill has been submitted to… – Continue reading

Hong Kong, US Wrapping Up FATCA Agreement

Hong Kong and the United States have substantially concluded discussions on an inter-governmental agreement (IGA) to simplify Hong Kong financial institutions’ compliance with the Foreign Account Tax Compliance Act. The Financial Services and the Treasury Bureau (FSTB) said that the IGA “will reduce Hong Kong financial institutions’ reporting burden and… – Continue reading

Taiwanese FATCA Pact Expected In June

Taiwan’s Financial Supervisory Commission (FSC) has confirmed that it expects to conclude an intergovernmental agreement (IGA) with the United States regarding the Foreign Account Tax Compliance Act (FATCA) by the end of June this year. FATCA, enacted by the US Congress in 2010 and due to take effect on July… – Continue reading

Costa Rica, 46 countries commit to automatic exchange of tax, financial info

May 7th, 2014 (InsideCostaRica.com) Tax evaders and privacy advocates beware – Costa Rica and 46 other countries signed up yesterday to automatically share banking, financial, and tax information in what the OECD is touting as a major step towards cracking down on global tax evasion. The Declaration on Automatic Exchange… – Continue reading

New Jersey Backs Off $3.2 Billion Emerging-Markets Bet

No other U.S. pension, endowment or foundation manager has invested as heavily in emerging-market ETFs as the New Jersey Pension Fund, a $3.2 billion gamble at its height. Now the state’s reversing course. The $76.8 billion fund, the 12th largest public pension manager in the U.S., has cut its holding of developing-nation exchange-traded funds… – Continue reading

Asian logging companies ‘use British islands for tax dodging’

Calls for crackdown as investigation finds huge Indonesian corporations evading tax through network of secret shell companies in British Virgin Islands and other tax havens Giant Asian logging companies that make billions from destroying rainforests use a labyrinth of secret shell companies based in a UK overseas territory, the British Virgin… – Continue reading

Dual nationals to come under US tax net

ISLAMABAD: The government has geared up efforts to deal with the situation following the enforcement of Foreign Accounts Tax Compliance Act (FACTA) by the United States asking the Pakistanis having US nationality and multinational companies doing business in both the countries to submit taxes on their income to the US… – Continue reading

Beanie Baby Creator: Prosecutors Want Prison Time For Ty Warner’s $25 Million Tax Fraud

Beanie Baby creator Ty Warner might be headed to prison after all. The billionaire was originally sentenced to probation after hiding $25 million in Swiss banksto avoid US taxes, but federal prosecutors are now asking for re-sentencing. Their appeal argued that Warner appears to be getting a different standard of justice than the… – Continue reading

Wyoming businessman jailed for using concealed Nevis bank account for tax evasion

BASSETERRE, St. Kitts – NEWS reaching this publication states that a businessman from Wyoming, United States of America was on Wednesday (May 7) sentenced to serve 36 months in jail for tax evasion.   According to a US Department of Justice press release, the businessman, Robert C. Sathre, appeared before US District… – Continue reading

Dual nationals to come under US tax net

ISLAMABAD: The government has geared up efforts to deal with the situation following the enforcement of Foreign Accounts Tax Compliance Act (FACTA) by the United States asking the Pakistanis having US nationality and multinational companies doing business in both the countries to submit taxes on their income to the US… – Continue reading

Belize – Fiscal Paradise with High Level of Confidentiality

Kuala Lumpur, Malaysia — (SBWIRE) — 05/08/2014 — ICO Services, the international company specialized in the formation of offshore companies and offshore banking, has recently expanded their services to the American business world by launching their service of setting up a company in Belize, the only fiscal paradise in Central… – Continue reading

Canada: Treaty Shopping Proposals – A Review Of 2013 And 2014 Developments

In Budget 2013, the Government announced its intention to consult on possible measures to combat treaty shopping. Eleven months later, in Budget 2014, the Government invited comments on a proposed domestic anti-treaty abuse rule. This article briefly reviews developments arising between the two budgets and provides high level comments in… – Continue reading

United States: Israel Inks Model 1 FATCA IGA

Bloomberg BNA is reporting that Israel has signed a FATCA IGA.  The agreement is a Model 1 agreement, meaning that Israeli financial institutions will will report information about U.S. customers’ accounts to the Israeli  tax authorities, who will then send that information to the IRS. The news comes only a… – Continue reading

Netanyahu included? Israel to punish citizens who hide their money in the US by seizing 50% of concealed funds

Last week, Israel and the US signed an information-sharing agreement for financial assets (primarily bank accounts) belonging to Israeli and US citizens, in an attempt to improve tax enforcement in both countries. “US residents who do not disclose information about accounts they hold in Israel could risk fines of up to 50%… – Continue reading

Alexander Lukashenko approves a draft agreement with USA on compliance with international tax rules

The President of the Republic of Belarus, Alexander Lukashenko, approved a draft agreement between the Government of the Republic of Belarus and the Government of the United States of America on the improvement of compliance with international tax rules and the implementation of the Foreign Account Tax Compliance Act (FATCA) as a basis… – Continue reading

Belize – Fiscal Paradise with High Level of Confidentiality

An IBC is the most popular type of offshore corporation as it is designed for any international business activity, does not pay any taxes in the jurisdiction where is established, provides confidentiality to its owners and is not subject to reporting requirements. “According to different lists of international organizations, there… – Continue reading

iCreate and Convey team up to help global banks fast-track FATCA compliance

• Partnership creates end-to-end solution for enabling and ensuring FATCA compliance, including: data consolidation, indicia identification, additional KYC data/document capture, alerts/notifications and dashboards to monitor compliance, withholding calculations and remittance, and tax reporting. Banking analytics, risk and compliance pioneer, iCreate, today announced a strategic partnership with tax information reporting leader,… – Continue reading

Belize – Fiscal Paradise with High Level of Confidentiality

ICO Services, the international company specialized in the formation of offshore companies and offshore banking, has recently expanded their services to the American business world by launching their service of setting up a company in Belize, the only fiscal paradise in Central and South America where English is the official… – Continue reading

Pakistan Warns Banks To Register For FATCA

Because of a delay in the negotiation of an intergovernmental agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA), the State Bank of Pakistan (SBP) advised Pakistani financial institutions, as a precaution, to complete registration with the United States Internal Revenue Service (IRS) by May 5, 2014, at… – Continue reading

Finance Says Kuwait Joins US FATCA In Substance

Ministry Asks Cabinet To Issue Decree   KUWAIT CITY, May 4, (KUNA): The Ministry of Finance has announced that the State of Kuwait joined the list of countries which agreed initially in substance on the FATCA (Intergovernmental Agreement). The Ministry disclosed that they have agreed on substance regarding the FATCA… – Continue reading

Cayman Islands: A Legal Overview Of M&A In The Cayman Islands And British Virgin Islands

Against global trends, gradual growth in both the Cayman Islands and the British Virgin Islands (“BVI”) merger and acquisition (“M&A”) activity continued through 2013, led by flagship deals in both established and emerging markets. The flexibility, certainty and efficiency of the statutory merger regimes make both of these leading offshore… – Continue reading

U.S. plans to unleash IRS on Russian banks

Washington • As the United States attempts to punish Russia for its actions in Ukraine, the Treasury Department is deploying an economic weapon that could prove more costly than sanctions: the Internal Revenue Service. This summer, the U.S. plans to start using a new law that will make it more… – Continue reading