Category: USA

Economic Analysis – Slow Growth Amid Crackdown On Tax Havens – AUG 2015

BMI View: Montserrat’s economic growth will slow significantly in the coming years as the key financial services sector faces headwinds from an international crackdown on tax havens in the Caribbean. Additionally, th e end of a government programme of capital investment will also temper the island’s economic activity beginning in… – Continue reading

Brazil: Congress Approves Agreement Between Brazil And The United States For The Automatic Exchange Of Financial Information

Congress just approved the intergovernmental agreement between Brazil and the United States for the automatic exchange of financial account information (Legislative Decree 146/2015, published on June 26). According to the terms of the agreement, Brazilian financial institutions (or Brazilian branches of foreign financial institutions) must identify financial accounts of United… – Continue reading

Swiss Bank Von GrSwiss Bank Von Graffenried Reaches Deal in U.S. Tax Probeaffenried Reaches Deal in U.S. Tax Probe

Swiss private bank Von Graffenried Holding AG agreed to pay $287,000 to resolve a probe into claims it helped American taxpayers hide assets from authorities, according to the U.S. Justice Department. The Bern-based bank is the 15th to reach an accord with the U.S. over tax evasion under a framework… – Continue reading

Another Swiss Bank Reaches Resolution under Justice Department’s Swiss Bank Program

Washington, DC—(ENEWSPF)—July 2, 2015. The Department of Justice announced today that Privatbank Von Graffenried AG has reached a resolution under the department’s Swiss Bank The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States…. – Continue reading

Untangling the FATCA Web for Hedge Funds (Next Up: GATCA)

After a four-year ramp up, America’s far-reaching tax law, FATCA – the Foreign Account Tax Compliance Act (enacted in 2010) – is now in full effect. With over 60 countries (including, most recently, the Vatican) having signed an agreement with the United States related to the enforcement of FATCA, it… – Continue reading

Switzerland Tops The Financial Secrecy Index

When the HSBC Holdings plc (ADR) (NYSE:HSBC) (LON:HSBA) Swiss leaks story broke the big shock was that someone had produced evidence, not that one of Switzerland’s notoriously secretive banks had helped people evade taxes. We know that trillions are stashed away in tax havens around the world (the ICIJ estimates… – Continue reading

Sending employees to China on a Project Basis? Avoid an Unexpected Tax Bill

Apart from placing full time expatriate employees in China, as an investor you may often need to send staff from the parent company to China to complete temporary projects. Common examples include quality control, engineering projects, training or consultancy. However, what many foreign investors don’t know is that such visits… – Continue reading

United States: West Virginia’s Bank Of Mingo Pays $4.5 Million For BSA/AML Compliance Program Deficiencies, Showing That Small And Midsize Institutions Also Face Enforcement Scrutiny

A series of recent federal enforcement actions targeting weaknesses in financial institutions’ Bank Secrecy Act/anti–money laundering (BSA/AML) compliance programs continued on June 15, when the Department of Justice (DOJ), Financial Crimes Enforcement Network (FinCEN), and Federal Deposit Insurance Corporation (FDIC) announced a coordinated enforcement against West Virginia’s Bank of Mingo…. – Continue reading

Jeb Bush Made $29 Million After Leaving Office, Tax Returns Show

Florida governor releases 33 years of tax returns. Jeb Bush made $29 million in the first seven years after he left public office, dramatically increasing his wealth during a recession, a financial crisis and the Obama presidency he has criticized. Bush’s tax returns, released Tuesday, show how the former Florida… – Continue reading

State by State: China and New York State Trade

New York State is increasingly reliant on China as a consumer of services and manufactured goods. In 2014, New York exported approximately US$4 billion to China, making it the state’s sixth largest export market. The top five exports to China are transportation equipment, waste & scrap, machinery (except electrical), primary… – Continue reading

BEPS Action 3: How Not to Engage with CFC Rules

Action 3 of the OECD’s Base Erosion and Profit Shifting (BEPS) agenda promised to address how countries could use controlled foreign corporation (CFC) rules to combat BEPS. Unfortunately (or fortunately, depending upon one’s vantage point), as is pretty much universally agreed, the OECD’s draft report on CFC rules (the “draft”)1… – Continue reading

Brazil and U.S. Working To Mend Ties

Brazilian President Dilma Roussef met with President Barack Obama at the White House this week. Below is the new multi-faceted partnership. The United States and Brazilian relationship has been unstable since the U.S. spying policy became known in 2013. Brazilian President Dilma Roussef canceled a 2013 visit to Washington, D.C…. – Continue reading

Cayman Islands: Cayman Takes Further Steps With The Global Common Reporting Standard

The next step for the Cayman Islands in relation to international tax cooperation is the implementation later this year of the OECD Common Reporting Standard (CRS). The CRS standardises the global automatic exchange of information (AEOI) for tax purposes. Financial Services Minister Wayne Panton said the CRS will further strengthen… – Continue reading

The British Virgin Islands: Jurisdiction of Choice for IBCs

The British Virgin Islands (BVI) maintains its popularity as the jurisdiction of choice for international business companies by ensuring it is at the forefront of corporate legislation and international cooperation. The popularity of BVI companies continued unabated in 2014, with incorporations of approximately 60,000 new business companies during the year;… – Continue reading

Mexico: Energy Reform – Chapter VI: Implications On International Tax Matters

1. Permanent Establishment 1.1. Subjects and activities that generate a PE Article 64 of the LISH provides that a PE is created whenever ever a resident abroad for tax purposes carries on with activities under the LH in Mexican territory or the exclusive economic zone over which Mexico has jurisdiction…. – Continue reading

West Virginia’s Bank of Mingo Pays $4.5 Million for BSA/AML Compliance Program Deficiencies, Showing that Small and Midsize Institutions Also Face Enforcement Scrutiny

A series of recent federal enforcement actions targeting weaknesses in financial institutions’ Bank Secrecy Act/anti–money laundering (BSA/AML) compliance programs continued on June 15, when the Department of Justice (DOJ), Financial Crimes Enforcement Network (FinCEN), and Federal Deposit Insurance Corporation (FDIC) announced a coordinated enforcement against West Virginia’s Bank of Mingo…. – Continue reading

Corrupt Chinese Government Officials Flee To Australia Amid Hesitation To Extradite Criminals

Chinese emigration continues to grow as the nation becomes increasingly wealthy. However, a handful of those leaving the country are wanted financial criminals, and they are heading to all corners of the world. While the United States and Canada continue to be popular destinations for corrupt Chinese on the run,… – Continue reading

A.M. Best Briefing: A.M. Best Comments on Proposed U.S. Tax Changes for Offshore (Re)Insurers

OLDWICK, N.J.–(BUSINESS WIRE)–Proposed U.S. legislation aimed at preventing offshore tax avoidance by closing a tax loophole that allows offshore reinsurers to take advantage of an exception to the passive foreign investment company (PFIC) rules of the U.S. Tax Code will not lead to rating revisions over the near term, according… – Continue reading

Taxpayers Still Facing Big Challenges One Year After FATCA Goes Into Effect

June 30 — Taxpayers continue to wrestle with big questions a year after the Foreign Account Tax Compliance Act opened for business. Acknowledging that the Internal Revenue Service is doing its best to implement a complex law, issues still remain as the reach of FATCA goes global, practitioners told Bloomberg… – Continue reading

Top 10 countries with best residence-by-investment schemes

The UAE ranked 15th in an index rating countries’ residency-in-return-for-investment programmes As global economic growth slackens, a number of countries are offering citizenship or residency permits in return for investment in their markets. According to the latest Global Residency Programme Index by Henley & Partners, Portugal topped the list with… – Continue reading

KPMG And Dun & Bradstreet Alliance Addresses FATCA Due Diligence Challenges

NEW YORK and SHORT HILLS, N.J., June 30, 2015 /PRNewswire/ — Marking the one-year deadline for foreign financial institutions (FFIs) to identify their preexisting entity account base for purposes of the Foreign Account Tax Compliance Act (FATCA), KPMG LLP, the U.S. audit, tax and advisory firm, and Dun & Bradstreet… – Continue reading

Mega-merger: Monsanto still seeks takeover of Syngenta, world’s largest crop chemical company

Transnational agrochemical and seed giant Monsanto has reiterated its desire to merge with fellow chemical-producing behemoth Syngenta, a company that has already rebuffed three previous purchase attempts by Monsanto. Announcing unexpectedly positive third quarter earnings late last week, Monsanto said that it is still seeking ways to woo Switzerland-based Syngenta… – Continue reading

Drug companies give their tax affairs a clean bill of health ahead of Senate grilling

Multinational drug companies are presenting a united front ahead of their appearance at the Senate’s corporate tax avoidance inquiry, insisting they are honest, ethical and pay their fair share of tax. Nine pharmaceutical companies, which between them receive billions of dollars in taxpayer-subsidised sales via the Pharmaceutical Benefits Scheme, will… – Continue reading

Ex-Qualcomm exec gets $500k fine, jail time for insider trading

(MENAFN – The Peninsula) A former high-ranking executive of US computer chip giant Qualcomm was fined 500,000 and sentenced to 18 months in prison Friday for insider trading, US officials said. Jing Wang, 52, the former executive vice president and president of global business operations at Qualcomm pleaded guilty last… – Continue reading

FATF Issues Guidelines for Monitoring Digital Currency

Financial Action Task Force on Money Laundering (FATF), an international intergovernmental organization created to combat money laundering has recently issued guidance in the form of a report titled ‘Guidance for a Risk-Based Approach to Virtual Currencies’ for closer monitoring of cryptocurrency exchanges. The report discusses about various benefits associated with… – Continue reading

Manhattan DA: Cayman ‘better positioned’ to fight terrorism finance

The Cayman Islands is better positioned to police terrorism financing than the U.S., an American congressional subcommittee heard Wednesday. The comments came from New York County District Attorney Cyrus Vance, who was called before the U.S. House Task Force to Investigate Terrorism Finance. “On a near daily basis, we encounter… – Continue reading

Cantillon: Dublin incinerator funding from Luxembourg a burning issue

DUBAI: This week the UK’s National Crime Agency (NCA) published their 2015 National Strategic Assessment. The Assessment presents a comprehensive picture of the threat to the UK from serious and organised crime, and helps to inform the work of the NCA and their international partners, including in the UAE. Some… – Continue reading

Wyly Family Fights SEC Asset Freeze in $550 Million Fraud

The children of craft store kingpins Charles and Sam Wyly say they shouldn’t suffer for their fathers’ transgressions. The U.S. Securities & Exchange Commission says they shouldn’t be allowed to spend the proceeds of the brothers’ fraud. The Wyly brothers used gains from secret, illegal, offshore transactions “as their own… – Continue reading