United States Intergovernmental Agreement The British Virgin Islands (“BVI”) Government on 6 March 2014 initialled a “Model 1 intergovernmental agreement” (the “BVI-US IGA”) with the government of the United States of America with respect to the “Foreign Account Tax Compliance Act” provisions of the Internal Revenue Code (“FATCA”), designed to… – Continue reading
(Reuters) – Israel has become the latest country to reach a tax information-sharing agreement with the United States under a new law meant to combat offshore tax dodging by Americans, a U.S. Treasury Department spokesperson said on Thursday. Set to take effect on July 1, the Foreign Account Tax Compliance Act of… – Continue reading
Hong Kong has signed its first ever tax information exchange agreement (TIEA), paving the way for its implementation of the US foreign account tax compliance act. Signed last month, the TIEA was enacted following an order made by the head of the Government of Hong Kong, Leung Chun-ying. It comes… – Continue reading
SINGAPORE–Financial institutions based in Singapore will need to regularly report information on U.S.-owned financial accounts, after the Asian financial center agrees a deal that would help the U.S. curb offshore tax evasion. The move is part of Singapore’s push to toughen mechanisms for tackling cross-border tax offenses, as it emerges… – Continue reading
The U.S. Treasury announced that on April 11, 2014, India agreed “in substance” to sign a Model 1 FATCA IGA with the US. The IGA would therefore require Indian financial institutions to report information on U.S. account holders to India’s Central Board of Direct Taxes, which would then share the information… – Continue reading
The IRS announced on 2 April 2014, that the deadline for foreign financial institutions registering for a GIIN, in order to appear on the first issued IRS list of foreign financial institutions, has been pushed out from 25 April 2014 to 5 May 2014. They have also indicated that registrations… – Continue reading
The federal government has entered into an intergovernmental agreement with the United States to “reduce the burden on Australian financial institutions” in complying with the US Foreign Account Tax Compliance Act. Treasurer Joe Hockey announced yesterday that the agreement with the US government has been completed, heralding ramifications for “a… – Continue reading
The double taxation agreement (DTA) between Singapore and Barbados came into force on April 25, 2014, after the completion of ratification procedures by both sides. The DTA is intended to boost cross-border trade and investment between Singapore and Barbados by providing greater clarity on both parties’ taxing rights to ensure… – Continue reading
On April 25, an order was gazetted in Hong Kong to implement the tax information exchange agreement (TIEA) with the United States that was signed on March 25 this year, as part of preparations for the US Foreign Account Tax Compliance Act in Hong Kong. “This is the first TIEA… – Continue reading
Australia signed a tax-information sharing agreement with the U.S. Treasury Department on Monday ahead of a new U.S. law that will crack down on offshore tax avoidance. The accord, one of a number of so-called intergovernmental agreements (IGA) between Washington and individual countries, comes ahead of the implementation in the United… – Continue reading
Beanie Baby creator H. Ty Warner’s sentencing for tax evasion left him on probation, but the recent appeal filing seeks to change his fate. In September 2013 H. Ty Warner, creator of the mid-’90s craze of animal-shaped Beanie Babies, was charged with federal tax evasion stemming from an illegal offshore… – Continue reading
Attempts by the country’s banks to comply with new American tax legislation are raising fears about customers’ privacy. The United States is one of two countries – the other being Eritrea – that tax their citizens who live overseas, even if their income is generated in a foreign country and… – Continue reading
Barbados is weighing new ways to attract offshore investments. The Central Bank of Barbados (CBB) confirmed this week that the government is contemplating providing high net worth foreigners with the right to hold and own property on the tiny island of 283,000 people. The confirmation follows the disclosure by Euromoney.com… – Continue reading
Americans have always enjoyed the privilege of living abroad without losing citizenship. Think Hemingway and Fitzgerald decamping to write in Europe after World War I, or Gen. MacArthur spending decades in Asia around World War II. Expatriates remain Americans, and have generally been welcomed back to our shores with open… – Continue reading
The Foreign Account Tax Compliance Act (“FATCA”) is a US tax measure enacted in 2010 to prevent and detect US tax evasion and improve taxpayer compliance. It targets tax non-compliance by US taxpayers with foreign accounts by imposing a 30% withholding tax on their transactions with foreign financial institutions and… – Continue reading
The Global Organisation for Economic Cooperation and Development’s proposed standard information exchange does not change the FATCA deadline. Jeffrey S. Freeman, J.D., LL.M It is estimated that the U.S. economy suffers a $500 billion loss annually due to tax evasion on foreign source income and assets hidden outside the country…. – Continue reading
India has concluded an ‘in substance’ agreement with the US to combat possible tax evasion by Americans through Indian financial entities. The ‘in substance’ agreement with India under Foreign Account Tax Compliance Act (FATCA) was concluded on April 11, the US Treasury said. Market regulator Sebi plans to issue guidelines… – Continue reading
The US and Belgium have made a deal to share bank account information to improve international compliance with tax rules. Belgium has announced that it had reached an agreement with the United States on sharing bank account information as part of international efforts to crack down on tax evasion. “This… – Continue reading
The Ministry of Financial Services is pleased to advise that the Cabinet of The Bahamas approved, in principle, the Model 1 Agreement between the Government of The Bahamas and the Government of the United States to implement Foreign Account Tax Compliance Act (FATCA) following a productive round of negotiations with… – Continue reading
On 29 November 2013, the Cayman Islands government signed a Model 1B (i.e. non- reciprocal) intergovernmental agreement with the United States of America (the “US IGA“). The US IGA provides a framework for the implementation of the US Foreign Account Tax Compliance Act (“FATCA“) in the Cayman Islands. Cayman primary… – Continue reading
On 29 November 2013, the Cayman Islands government signed a Model 1B (i.e. non- reciprocal) intergovernmental agreement with the United States of America (the “US IGA“). The US IGA provides a framework for the implementation of the US Foreign Account Tax Compliance Act (“FATCA“) in the Cayman Islands. Cayman primary… – Continue reading
On April 2, 2014, the U.S. Internal Revenue Service (IRS) issued Announcement 2014-17 (the Announcement), which provides certain FATCA relief.1 The Announcement extends from April 25, 2014 to May 5, 2014 the deadline by which an FFI must register with the IRS in order to appear on the first public list of… – Continue reading
Belgium and the US will sign an intergovernmental agreement (IGA) in Brussels on April 23 for the implementation of the US Foreign Account Tax Compliance Act (FATCA), the Belgian Finance Ministry has announced. The IGA requires the Belgian Tax Administration and the US Internal Revenue Service (IRS) to exchange information… – Continue reading
It may be tax day for most Americans, but it’s still a tax holiday for those who use offshore accounts to avoid paying levies on as much as $109 billion annually back to Uncle Sam, according to Quartz. Many of the monied types keep their dollars in offshore accounts specifically to… – Continue reading
Republicans in Maine have been talking for years about the necessity of bringing jobs to our state. And I couldn’t agree more. Maine communities and families depend on private employers creating well-paying jobs here. For this reason, our legislature and governor have instituted many incentives to bring companies to the… – Continue reading
The Cayman Islands continue to be the pre-eminent offshore jurisdiction for hedge funds. Around 85 per cent of the world’s hedge funds are domiciled in the Cayman Islands, enabling the jurisdiction to outrank competing offshore centres (the British Virgin Islands, Bermuda and Jersey among them) as the top spot for… – Continue reading
BRUSSELS, April 12 (KUNA) — Belgium and the US will sign an agreement on 23 April that will allow the automatic exchange of bank data from accounts held in both countries. Belgian Finance Minister Koen Geens was quoted by Belgian media Saturday saying that the new deal “will lead to… – Continue reading
Prague, April 10 (CTK) – The number of Czech companies with owners based in destinations regarded as tax havens grew to 13,168 at the end of March, up by 68 from the end of last year, according to information from consulting company Bisnode. According to Bisnode, interest in tax havens… – Continue reading
NEW YORK (TheStreet) — The Securities and Exchange Commission is serious about going afterApple’s (AAPL_) off-shore cash. In a letter of comment to Apple’s in-house counsel, SEC accounting branch chief Kathleen Collins challenged the company’s aggressive accounting policies. Apple has about $16 billion of offshore cash exempt from taxation by the Internal… – Continue reading
In November of 2008, America was sold on the “Hopey, Changey, Yes We Can” promise of Barack Obama. Well America, your hope has been shot since you elected him into office. Now, here comes more of the change Obama was really talking about. Are you ready? On July 1, America… – Continue reading
If Taiwan does not reach a consensus with the US on a pact that would help Taiwanese financial institutions meet requirements for reporting tax before July, the implementation of the Foreign Account Tax Compliance Act by the US on July 1 this year could mean a 30% tax deduction on… – Continue reading
The Foreign Account Tax Compliance Act is a US law, obligating banks in other countries to disclose to the American tax authorities information about the accounts of American taxpayers in these banks WASHINGTON, April 11. /ITAR-TASS/. Russian Finance Minister Anton Siluanov has notified US Treasury Secretary Jacob J. Lew of… – Continue reading
Foreign financial institutions, such as offshore funds, should register with the IRS by May 5 and review new and revised IRS forms. The July 1 start date for Foreign Account Tax Compliance Act (FATCA) withholding on certain payments of U.S. source income[1] is fast approaching, and no extensions of that start date are on the… – Continue reading
In round-tripping, U.S. investors move funds to offshore tax havens, then invest in U.S. equity and debt markets with these “foreign” funds. In essence, the U.S. investors are disguising themselves as foreign investors, who are not subject to the same tax rates on capital gains and interest income. The money… – Continue reading
U.S. states are trying to capture corporate income taxes lost to offshore havens, wary of companies exploiting rules that let them channel cash abroad and weary of congressional inaction. Oregon enacted a bill for the 2014 tax year identifying 39 countries and territories as corporate shelters a decade after Montana… – Continue reading
The Finance Ministry is drawing up legislation allowing Russian banks to give information about their clients to foreign tax authorities, after U.S. stonewalling halted bilateral negotiations on a financial information sharing agreement. At the same time, the ministry intends to oblige foreign banks to report similar information to the Russian tax service, Vedomosti reported Wednesday, citing sources in the ministry…. – Continue reading
Washington, DC – With the annual tax filing deadline approaching on April 15, today the Justice Department announced highlights of its work during the past year to enforce the nation’s tax laws. The Tax Division has worked with the Internal Revenue Service (IRS) to carry out their combined tax enforcement… – Continue reading
A joint effort by India and the US to amicably decide on their respective shares of taxes from IT and ITeS companies operating in both countries is threatening to unravel, owing to a big, seemingly unresolvable gap between the transfer pricing (TP) margins individually determined by them. While New Delhi… – Continue reading
On Tuesday, the House Ways and Means Committee holds a hearing to discuss making permanent several of multinationals’ favorite tax code provisions, including the Apple loophole. Thus the House, like the Senate, is in the early stages of enacting these expired provisions yet again. That’s how Congress traditionally gives multinationals their offshore tax loopholes: propose… – Continue reading
Given the proximity of Canada to the U.S., it is not surprising that many Canadians own real estate south of the border. Some, especially those who are retired snowbirds, also spend a good part of the year in the U.S. It is important to understand what the tax implications are… – Continue reading
The bitter marital split of aviation tycoon Clive Joy has highlighted the issue the role tax efficient offshore trusts can play in lengthy High Court divorces. Recently aviation tycoon Clive Joy hit the headlines, but not for his expertise in aerospace issues. It was because in the course of a bitter… – Continue reading
The schedule of the Russian parliament has been updated yet again and it appears that forex dealing regulation is coming back to the fray. According to recent reports by Russian media there might be some key amendments aimed to limit the participation of brokers residing in offshore financial centres (OFCs)…. – Continue reading
ST. GEORGE’S, GRENADA, Tuesday April 1, 2014: The Member Governments of the Eastern Caribbean Currency Union (ECCU) have commenced discussions with the United States of America (US) towards executing an Inter-Governmental Agreement (IGA) for the implementation of the provisions of the US Foreign Account Tax Compliance Act (FATCA). On 18… – Continue reading
Starting July 1, every international business and investment in the world is going to feel the full weight of U.S. tax law directly or indirectly. It is all part of the Congress’s long-time policy of making international business — referred to derogatorily as offshore — the scapegoat in order to… – Continue reading
We are a tax avoidance nation. Almost everyone employs some strategies to avoid paying more taxes than they should. So it’s hardly news to anyone, except Sen. Carl Levin, D-Michigan, that Caterpillar Inc. may have employed some strategies to reduce the amount of federal taxes it pays. Levin, chairman of… – Continue reading
All bar the dotting of the i’s and crossing of the t’s appears done in New Zealand’s intergovernmental agreement with the United States over its controversial Foreign Account Tax Compliance Act, or FATCA. An Inland Revenue Department (IRD) spokesman confirmed to interest.co.nz negotiations between the two countries have progressed sufficiently… – Continue reading
ZURICH (Reuters) – Credit Suisse faces the threat of a new investigation into its role in helping wealthy Americans avoid paying taxes after New York state’s top financial regulator requested documents from the Swiss bank. Switzerland’s second-largest lender had raised expectations it was putting the long-running American tax controversy behind it when it… – Continue reading
PARIS — Netflix is set to follow iTunes and Google’s footsteps: The service is expected to launch in Gaul in the fall but will be headquartered Luxembourg in order to avoid the heavy French regulations. French newspaper Les Echos reported the move will bring Netflix’s French outpost together with its other European headquarters —… – Continue reading
Luxembourg and the US have signed an intergovernmental agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA). Luxembourg and the US negotiated a Model 1 IGA, requiring the Luxembourg Tax Administration and the US Internal Revenue Service (IRS) to exchange information automatically on accounts held by US citizens… – Continue reading
During 2013, the Central Bank of Barbados (Bank) continued to enhance its regulatory framework in response to emerging international standards and best practices and to collaborate with other domestic regulators and stakeholders on various national issues, including the Global Forum on Transparency and Exchange of Information for Tax Purposes Peer… – Continue reading
