Category: USA

Partners against crime: UAE, US sign innovative agreement on tax evasion

The UAE has reached an initial agreement with the US to carry out a financial data-sharing programme aimed at curbing offshore tax evasion by US citizens. The Ministry of Finance announced on Tuesday that the two countries had negotiated an Intergovernmental Agreement (IGA) in substance to implement the US’s Foreign… – Continue reading

South Africa, US Conclude FATCA IGA

On June 9, 2014, South African Finance Minister Nhlanhla Musa Nene and the US Ambassador to South Africa, Patrick H. Gaspard, signed an inter-governmental agreement (IGA) to support international efforts to improve tax compliance. The agreement includes provisions allowing the reciprocal exchange of information, which requires that financial institutions in… – Continue reading

Intergovernmental FATCA agreement signed

Revenue Minister Todd McClay and United States Chargé d’Affaires a.i., Marie Damour, today signed an intergovernmental-agreement (IGA) which will minimise compliance costs to financial institutions in New Zealand while assist in the prevention of tax evasion. The IGA is in response to the Foreign Account Tax Compliance Act (FATCA) information-reporting… – Continue reading

Advising The ‘Accidental Americans’

In an ever-increasing globalized world, more and more people are finding themselves working outside their home countries. There are estimated to be over 6 million American citizens living outside the U.S. As a financial advisor, no matter where you work in the world, if you are dealing with clients or… – Continue reading

Azerbaijan, IRS to ink additional confidentiality agreement

Azerbaijan and the U.S. Internal Revenue Office (IRS) will sign an additional agreement on confidentiality under the intergovernmental agreement on implementing the Foreign Account Tax Compliance Act (FATCA) by Azerbaijani banks by September 30, 2015. The news was announced by Azerbaijani Taxes Ministry last week. “It is known that the… – Continue reading

Global FATCA Push by IRS

The IRS had made a worldwide push to get information about offshore accounts over $50,000 of American taxpayers, using the Foreign Account Tax Compliance Act, or FATCA. Commentator Rob Wood discusses the new effort in his Forbes article, “IRS Nets Offshore Data Wood underscores the point that U.S. citizens abroad… – Continue reading

FATCA Causes First Russian Bank To Cut US Clients

With Russia unlikely to be able to conclude a Foreign Account Tax Compliance Act (FATCA) intergovernmental agreement (IGA) with the United States in the foreseeable future, and subject to the country’s current law on tax information exchange, VTB has become the first Russian bank to disclose that it is reducing… – Continue reading

SA clamps down on offshore tax evasion

SA and the US have signed an intergovernmental agreement aimed at improving international tax compliance Yesterday a reciprocal agreement was signed by Finance Minister Nhlanhla Nene and Patrick Gaspard, US Ambassador to SA that will force local financial institutions to report information about US account holders to the SA Revenue… – Continue reading

European Commission to investigate Apple’s Ireland tax haven – report

Additional details on the allegedly impending investigation from the European Commission were not shared by the initial source, Ireland’s RTE, according to Reuters. A formal announcement of the investigation is expected to follow.It’s already been established through other investigations that Apple has not broken any laws in utilizing Ireland as a tax haven,… – Continue reading

EC to Investigate Apple’s (AAPL) Ireland Tax Haven: Report

Irish state broadcaster RTE reports that the European Commission had decided to launch a formal investigation into Apple (AAPL)’s tax arrangements in Ireland. An announcement is expected by EU’s Competition Commissioner to follow: “The European Commission is to open a formal investigation into Apple’s tax arrangements with Ireland. An announcement is expected to… – Continue reading

Cyprus: New Double Tax Treaty Between Cyprus And Spain Soon To Enter Into Force

With the impending FATCA compliance rollout and the U.S. Justice Department deal for Swiss banks, there are lots of letters and phone calls being made to account holders with American indicia. American citizens, residents—even people with a U.S. address or phone number—should be prepared. Possible American status means proving you’re… – Continue reading

Illinois parts-maker fights U.S. IRS over cross-border tax deal

The U.S. Internal Revenue Service and manufacturer Illinois Tool Works Inc. are battling in U.S. Tax Court over a $356.8 million dispute that highlights a type of cross-border tax avoidance strategy facing increased scrutiny worldwide. As governments crack down on tax-driven profit-shifting, the IRS is asserting that a loan used… – Continue reading

Levin-backed legislation aims to curb pace of companies moving offshore for lower taxes

While Perrigo Co. plc has already cut its tax burden by moving offshore in the $8.6 billion blockbuster deal with Irish pharmaceutical maker Elan Corp. that it says will allow it to expand globally, other U.S. corporations could have a hard time pulling off similar deals. New federal legislation aims to change… – Continue reading

Your bank will send US transactions info to US tax authorities from July 1

All financial institutions in the UAE must comply with the agreement signed with the US Financial institutions in the UAE will start sharing extensive data of account holders with a US nationality from July 1st with the Internal Revenue Services (IRS), or the American tax collecting authority. On May 23rd… – Continue reading

Report: Bank Leumi to pay NIS 1 billion fine to US over tax evasion suspicion

Bank Leumi, one of Israel’s largest financial institutions, will pay a billion-shekel fine to US authorities for suspected tax evasion, Channel 2 reported on Sunday. Related: Israel agrees to turn American’s bank accounts over to IRS According to a US-led investigation, the bank’s American branches made illegal transactions to clients’… – Continue reading

NZ’s independence not for sale, says Internet Party

The Trans-Pacific Partnership Agreement, Five Eyes intelligence sharing and the American Foreign Account Tax Compliance Act have put New Zealand’s sovereignty and independence at risk and must be immediately reviewed, says the Internet Party. In its draft Independence policy released today, the Internet Party said New Zealand’s sovereignty was being… – Continue reading

Study: 70% of Fortune 500 Companies, of Which 5 are Wisconsin-Based, Used Tax Havens in 2013

Madison, June 5 – Tax loopholes encouraged more than 70 percent of Fortune 500 companies – includingJohnson Controls, Rockwell Automation and Manpower here in Wisconsin – to maintain subsidiaries in offshore tax havens as of 2013, according to “Offshore Shell Games,” released today by WISPIRG Foundation and Citizens for Tax Justice. Collectively, the companies reported booking… – Continue reading

Russia’s No. 2 Bank VTB to Stop Servicing Russia-Based U.S. Clients

VTB, Russian’s second-largest banking group, will cease service to Russia-based U.S. clients to avoid falling foul of FATCA, a U.S. tax avoidance law that comes into force on July 1. Even at this late stage, Russian law and FATCA are incompatible — Russian banks will be able to comply with U.S. law or Russian law, but not both, the head of the… – Continue reading

Report: CT Loses $600M In Tax Revenue When Corporations Shift Profits

Seventy two percent of Fortune 500 companies avoid approximately $90 billion in taxes by booking profits to subsidiaries registered in offshore tax havens, according to a report from the ConnPIRG Education Fund and Citizens for Tax Justice. Each year, offshore tax loopholes used by U.S. multinational corporations cost Connecticut $600 million in… – Continue reading

Americans must pay taxes on bank accounts in Israel

United States citizens who have accounts or financial assets in Israel soon will have even more incentive than previously to disclose them to the Internal Revenue Service (IRS). The Foreign Account Tax Compliance Act (FATCA), which takes effect July 1 in Israel, is meant to combat tax evasion and fraud… – Continue reading

Russia’s VTB to stop service in US to comply with FATCA

The FATCA obliges banks to send information about US clients and their transactions to the Internal Revenue Service MOSCOW, Jun 5./ITAR-TASS/. The banks of Russia’s VTB Group will gradually cease servicing its 2,000 US clients to comply with the requirements of the Foreign Account Tax Compliance Act (FATCA), daily Izvestia… – Continue reading

Offshore Voluntary Disclosure Program to aid NRIs with undisclosed assets

The United States government has actively been pursuing NRIs who have undisclosed offshore assets and income. The United States law requires citizens and residents (i.e., green card holders, H1-B visa holders, and other tax residents) to report their worldwide income and complete a Report of Foreign Bank and Financial Accounts… – Continue reading

When corporations get too big to tax

The drive to scrap the corporate income tax won’t stop at zero. Wouldn’t it be nice if the government paid you on Tax Day? I’m not referring to getting a tax refund because you overpaid the federal government or a safety-net benefit labeled as a tax refund under the “Earned… – Continue reading

Compliance by Nigerian financial institutions with United States FATCA: caught between a rock and a hard place?

The Foreign Accounts Tax Compliance Act is a United States legislation that requires non-U.S foreign financial institutions (‘FFIs’) to identify and disclose their United States financial account holders to the US Internal Revenue Service (IRS) or otherwise be subject to a punitive 30% US withholding tax with respect to any… – Continue reading

Majority of U.S. Offshore Profits Claimed in 12 Tax Havens

U.S. corporations have reported to the Internal Revenue Service that 54 percent of their offshore profits are earned in 12 tax haven countries that, combined, only account for 4 percent of economic output among all countries where U.S. corporations do business. A new report by the advocacy group, Citizens for… – Continue reading

U.S. Republican tax writers criticize global corporate tax project

Republican tax law writers in the U.S. Congress and multinational businesses on Monday said international talks aimed at preventing companies from moving profits to low-tax countries could hurt the United States. Representative Dave Camp and Senator Orrin Hatch of Utah warned of the effect on U.S. taxpayers from the Organisation… – Continue reading

US Tax Cheats in Ireland Pocket Profits Worth Almost Half of GDP

It is a figure which Citizens for Tax Justice (CTJ), the US group which authored the report, says highlights Ireland’s popular use as a tax haven among US companies. Matt Gardner, executive director of the Institute on Taxation and Policy in Washington DC, tells IBTimes UK: “It’s a clear indicator… – Continue reading