KUALA LUMPUR: All local financial institutions will be required to declare their American customers to the United States Internal Revenue Service (IRS) under a new agreement to catch its tax evaders who hide their money overseas. Malaysia will be entering into an inter-governmental agreement with the US in line with… – Continue reading
A lawsuit has been filed by several Canadian citizens against the Canadian Attorney General in Federal Court in Canada. The legal claim challenges the constitutionality of the agreement the Canadian government struck with the United States. The controversial deal between nations was inked under FATCA—the Foreign Account Tax Compliance Act…. – Continue reading
The Internal Revenue Service has updated the Withholding Foreign Partnership and Withholding Foreign Trust agreements as part of the process of implementing the Foreign Account Tax Compliance Act, or FATCA. FATCA, which was included as part of the HIRE Act of 2010, requires foreign financial institutions to report on the… – Continue reading
Is your client a resident of New York State for tax purposes? Under NYS Tax Law Section 605(b), a resident is defined as someone who is domiciled in New York State, or who maintains a “permanent place of abode” (PPA) and spends more than 183 days of the tax year… – Continue reading
NEW YORK – According to industry insiders there is a battle waging over Software-Defined Networking (SDN) that is a way to build corporate networks without the networking gear built by companies such as Cisco (NASDAQ:CSCO) and Juniper Networks (NYSE:JNPR). The battle pits network equipment manufacturers against a string of companies… – Continue reading
Gibraltar’s financial community must immediately prepare itself for FATCA or it risks getting caught up in the legislation’s strict international net, says an authority from the jurisdiction. Helvetic, a fund adminstrator based in the British overseas territory, says many financial institutions in the area are underestimating the compliance costs of… – Continue reading
As one of the nation’s most competitive governor’s races picks up, voters in Illinois are hearing a whole lot about a British territory thousands of miles away in the Caribbean. Democratic Gov. Pat Quinn hammered his wealthy Republican rival for days after reports that Bruce Rauner put some investments in… – Continue reading
An American attempt to close a loophole could have a major impact on the recovering Irish economy, writes John Walsh in Dublin. “The company concluded it was not in the best long-term interests of our shareholders to attempt to redomicile outside the US.” That single sentence, uttered by Walgreens’ chief… – Continue reading
Robert Redford has sued New York State over a personal tax bill that goes back to 2005. Regarded as Hollywood royalty, the Sundance Film Festival founder, celebrated actor, director, and producer is generally considered the godfather of indie films. He has a Patrician air, a golden touch, and liberal values… – Continue reading
Even if you beat long odds and win the lottery, you’ll have taxes to pay. It can be more challenging than you might think. Time and again, winners have trouble paying their taxes or get confused. The states vary in how they treat lottery winnings. A few states still don’t… – Continue reading
(Reuters) – Auto parts supplier Delphi Automotive Plc (DLPH.N) said it would “vigorously contest” pressure by U.S. tax authorities to file taxes in the United States as a domestic company, when its tax base is in the UK. Delphi, which operates out of Detroit, is one among several American companies… – Continue reading
Bank of America’s projected $16 billion settlement for selling toxic mortgages is expected to be the largest in the history of corporate America, but it’s also likely to include some hidden, and significant, financial benefits for the giant bank. With some $7 billion of the total likely to come in… – Continue reading
The Isle of Man, Dubai and Guernsey, all known as captive domiciles, are being joined by a new rival – the US state of Ohio. Legislation has recently been signed meaning that businesses will be able to create captive insurance companies in the state in order to cater for their… – Continue reading
The reputation of many jurisdictions, or so called ‘tax havens’, has been attacked by other nations, most which fail to apply the same policies that they advocate for others. Over the last two decades, International Financial Centers (IFCs) have made vast changes to their laws and their enforcement, aiming to… – Continue reading
One side effect of soaring home prices: Real estate taxes are soaring too. The government provides many incentives to homeownership, including the mortgage-interest deduction and capital gains exclusion. But the interest deduction is generally limited to interest on $1.1 million in mortgage debt. And the capital gains exclusion is limited… – Continue reading
The Securities and Exchange Commission wants to make an example of two Texas brothers found by a jury at a civil trial to have acted fraudulently to evade taxes, but a defense lawyer said Wednesday that the more than $750 million sought by the government is “hotly contested.” A Manhattan… – Continue reading
The number of Americans renouncing U.S. citizenship stayed near an all-time high in the first half of the year before rules that make it harder to hide assets from tax authorities came into force. Some 1,577 people gave up their nationality at U.S. embassies in the six months through June,… – Continue reading
The son of a congressman, who could face time in prison following his federal indictment on theft and tax-fraud charges, was released on bail Tuesday afternoon. Chaka Fattah Jr., 31, is accused of everything from tax fraud to stealing from the Philadelphia School District as part of the wide-ranging indictment… – Continue reading
Germany’s Ministry of Finance announced that a law enabling the implementation of the United States’ Foreign Account Tax Compliance Act (FATCA) has come into force. The ministry said that the FATCA-USA Implementation Regulation, known in German as FATCA-USA-Umsetzungsverordnung or FATCA-USA-UmsV, entered into force on July 23, 2014. Germany signed the… – Continue reading
While Congress has been obsessing about tax inversions, it turns out another—potentially more important–tax avoidance technique is getting increased attention from the business community: Spinning off tangible assets into Real Estate Investment Trusts (REITs). If these deals become widespread, they’d be another nail in the coffin of the corporate income… – Continue reading
July 31 (Bloomberg) — Swiss banks will on the whole meet the deadline for delivering information on offshore accounts to the U.S., improving their chances of settling the cases this year. Roiled by the demise of the country’s oldest bank, the lenders are helping the Justice Department build cases against… – Continue reading
The Internal Revenue Service is offering tax relief to U.S. citizens and resident aliens living or working in war-torn South Sudan. The IRS issued Announcement 2014-28 last week, which provides guidance to U.S. citizens or resident aliens living and working abroad whose tax home is in a foreign country and… – Continue reading
In March 2014, the British Virgin Islands Government announced that it had concluded negotiations with the US with respect to a Model 1B Intergovernmental Agreement with the United States (the IGA). The IGA (which was eventually signed on 30 June 2014) provides the framework for the implementation of the US Foreign… – Continue reading
DALLAS, TX, Jul 29, 2014 (Marketwired via COMTEX) — This week, the Senate’s Permanent Subcommittee on Investigations held a hearing to question leaders of major banks and hedge funds about an alleged tax avoidance strategy. According to the Senate’s report, these entities have used basket options to skirt billions in… – Continue reading
FATCA Background The Foreign Account Tax Compliance Act (“FATCA”) was enacted in response to concerns that US taxpayers were avoiding US tax by using offshore financial institutions to hide assets and avoid reporting income. Generally, FATCA imposes due diligence, information reporting and withholding obligations on non-US financial institutions (“FFIs”) and… – Continue reading
Tax avoidance, the American way. Little Rock, Arkansas-based telco Windstream has caused a stir by announcing a novel scheme to reduce the amount of federal taxes it has to pay. It intends to spin off certain network assets into a publicly traded real estate investment trust (REIT). In so doing,… – Continue reading
(CS) The Foreign Account Tax Compliance Act, more commonly known as FATCA, will be submitted to a vote at the Luxembourg parliament this autumn, before coming into force next year, Finance Minister Pierre Gramegna has revealed. In answer to a parliamentary question by CSV MP Laurent Mosar, Gramegna said that… – Continue reading
Guyana and the United States have concluded “in substance” an intergovernmental agreement (IGA) for implementation of the US Foreign Account Tax Compliance Act (FATCA). FATCA was enacted by the US in March 2010 as a mechanism designed to reduce the level of tax evasion which currently exists. It seeks to… – Continue reading
NEW YORK (Reuters) – A former partner at defunct law firm Jenkens & Gilchrist, whom prosecutors have called the most important cooperating witness in the largest criminal tax fraud case in U.S. history, was sentenced on Wednesday to six months in prison. At a court hearing in New York, U.S…. – Continue reading
This June the IRS modified its offshore disclosure programs to encourage U.S. citizens to come forward and report their assets and mitigate risk of penalty or prosecution. To help your clients avoid running afoul of FATCA, a bulletin from PwC advises them to: Determine citizenship. In some cases, non-resident Americans are… – Continue reading
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Emailftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/b494286e-171e-11e4-b0d7-00144feabdc0.html#ixzz393LkTft5 Pfizer refuses to rule out tax inversion deals By Andrew Ward, Pharmaceuticals CorrespondentAuthor alerts… – Continue reading
With FATCA and its grave burdens and consequences for Americans living in Canada now a reality, the more than 1 million individuals affected now have the benefit of a useful guide self-published by Altro Levy, a multi-jurisdictional law firm with nine offices in Canada and the U.S. The guide is… – Continue reading
The Swiss banks in “category two” of the deal struck with American tax authorities could face smaller fines than they had feared, but only if they cooperate more with the United States. The Swiss publication Finanz und Wirtschaft reported on Saturday that those banks with some exposure to American clients… – Continue reading
If you are from the US then you’ve probably heard of the Foreign Account Tax Compliance Act (Fatca), but are you aware of how it could affect you? The legislation came into full effect on July 1, 2014 and has many implications, particularly for US expatriates. Fatca is a US… – Continue reading
Bruton says it is up to US government to resolve tax obligation anomalies The Government has insisted it does not facilitate the so-called tax inversion practices criticised by president Barack Obama in comments that referenced Ireland. Minister for Jobs and Enterprise Richard Bruton responded to Mr Obama’s remarks by saying… – Continue reading
US bankers and lawyers are inciting a sense of urgency among corporate clients to get tax-reducing acquisitions of offshore companies signed before the end of this year, now that a slew of recent so-called tax-inversion trades has set off alarms in Congress. Heated debates about how to limit such acquisitions… – Continue reading
BOSTON (CBS) – The real estate market has been busy this year. And if you sold your house this spring or have it on the market you may get a tax break when you sell your home. If your home has been your primary residence for two of the last… – Continue reading
The U.S. Senate will proceed to debate a bill ending tax advantages for companies that move jobs abroad and giving a tax break for companies moving jobs back. U.S. Sen. Jeff Merkley says that’s progress, given that a similar move two years ago failed to reach the 60-vote threshold required…. – Continue reading
U.S. tax law intended to nab billionaires who hide money in tax shelters is terrorizing middle-class dual citizens with no income south of the border Like many people in Canada who still have American citizenship, Pat is both scared and angry. The semi-retired suburban Vancouver woman is trying to relinquish… – Continue reading
Green Power CEO and founder Michael Spitzauer pleaded innocent Wednesday to tax evasion. The case has been reassigned to U.S. District Court Judge Sal Mendoza Jr., who was recently appointed to the federal bench. A trial has been tentatively scheduled for this fall. In all, Spitzauer of Kennewick has been… – Continue reading
Taxes charged by governments are a lot like consumer prices charged by retailers. The more you raise the price, the less money you actually bring in as shoppers learn to find better deals elsewhere. This is precisely what many American corporations are doing, shopping around for better tax rates in… – Continue reading
EFG International AG (EFGN), the Swiss bank controlled by billionaire Spiro Latsis and his family, said it set aside 21.4 million Swiss francs ($24 million) to pay a penalty to U.S. authorities probing tax evasion. That amount represents EFG’s “best estimate of the final cost of the penalty,” the Zurich-based… – Continue reading
The county Department of Finance is taking a dim view of a proposal by Kohala Councilwoman Margaret Wille to give some homeowners a bigger tax break on their primary residence. Wille, at a meeting Monday of the Real Property Tax Stakeholder’s Task Force, said she wanted to increase the base… – Continue reading
Watching big pharmaceutical companies and other major U.S. corporations line up to make foreign acquisitions that will bring them a low-tax haven as headquarters, a middle market CEO/owner/entrepreneur could easily become jealous. Are you feeling stuck with an effective tax rate of 25%, 30% or even 35%? For the likes… – Continue reading
World banking giants Barclays and Deutsche Bank have been accused by the US of helping more than a dozen hedge funds in tax evasion. Addressing a news conference, US Senate Permanent Subcommittee on Investigations chairman Carl Levin said the banks sold complex option products to Renaissance Technology that saved them… – Continue reading
On June 30, the United States and Israel signed an intergovernmental agreement (IGA) regarding FAT CA. FAT CA became effective in the US and other countries on July 1 and will officially take effect in Israel once the Knesset passes enabling legislation. But the Bank of Israel has already instructed… – Continue reading
In the latest moves towards implementation of the FATCA Intergovernmental agreements (IGAs) signed by the BVI with the US and the UK, the BVI Government has released draft Guidance Notes for public consultation. A copy can be accessed from the Ministry of Finance website. The draft Guidance Notes have been… – Continue reading
The corporate inversion trend tells us that global tax competition is intense and that U.S. tax reform is long overdue. Our combined federal-state corporate tax rate of 40 percent is far higher than the rates of our trading partners. Inversions are a bid by companies to create self-help tax reform… – Continue reading
lter Domus Improves Client On-boarding with Adoption of Thomson Reuters FATCA Solution Thomson Reuters FATCA solution helps Alter Domus clients comply with regulatory requirements and provides competitive advantage NEW YORK/LUXEMBOURG, July 21, 2014 – Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, today announced that… – Continue reading
Commissioners have yet to decide how much will be exempt from the tax. Officials in Lower Macungie for months have talked about their desire to give a break to people who pay taxes on residential properties. It’s looking more likely that will happen in 2015. Township commissioners last week continued… – Continue reading
