Law360, New York (June 03, 2014, 7:10 PM ET) — Internal Revenue Service Commissioner John Koskinen said Tuesday that an international plan to squash corporate profit shifting will create headaches for administrators and hurt U.S. taxpayers.Addressing the Organization for Economic Cooperation and Development, Koskinen said the plan would create tens… – Continue reading
If any U.S. company seems ripe for moving to an island tax haven, it’s Chiquita. Based in Charlotte, the company’s sale of bananas, grown largely in Central America, accounts for two-thirds of its profits. But Chiquita isn’t bound for the tropics. It’s headed to Ireland, where the climate may be… – Continue reading
Nearly 6 million Americans living abroad are facing a June 16 deadline to file their taxes this year. Regardless of the confusion that U.S. citizens abroad have over what will ultimately be required of them under the Affordable Care Act and other laws, all taxpayers whose income exceeds $10,000 are… – Continue reading
…as FATCA comes into force in JulyGovernment is to broaden the current tax net to include Ghanaians engaged in economic activities or hold investments in the United States, Dr. Larbi Siaw, Tax Policy Adviser at the Ministry of Finance (MOFEP) has saidDr. Larbi said that implementation of the Foreign Account… – Continue reading
The hunt for money hidden in Swiss bank accounts by U.S. citizens has become a global chase, with prosecutors tracing records to Singapore, the Cook Islands and elsewhere as U.S. authorities increase the pressure on Swiss lenders to turn over evidence, according to officials. Kathryn Keneally, head of the Justice… – Continue reading
Liechtenstein and the US have signed an intergovernmental agreement (IGA) for the implementation of the US Foreign Account Tax Compliance Act (FATCA), the Liechtenstein Government has announced. The IGA requires the Liechtenstein Tax Administration and the US Internal Revenue Service (IRS) to exchange information automatically on accounts held by US… – Continue reading
I am not a financial advisor or consultant and this column is presented only to help explain to many senior citizens what appears to be a warning currently making the rounds on the Internet. In my research of the notice the online truth digging site of “TruthorFiction.com” has provided their… – Continue reading
Bulgaria and the USA reached an agreement in substance regarding the implementation of the FATCA legislation in Bulgaria. You will find below a brief overview of this specific legislation, its application in Bulgaria and the main responsibilities arising for the Bulgarian business in this regard. What is FATCA? On 18… – Continue reading
Suisse Group AG (CSGN) set a new standard for punishment in the U.S. crackdown on offshore tax evasion. Julius Baer Group Ltd., Zuercher Kantonalbank and the Swiss unit of HSBC Holdings Plc (HSBA) are among those seeking to avoid pleading guilty to helping Americans cheat the Internal Revenue Service —… – Continue reading
Azerbaijan and the U.S. intend to sign a double taxation evasion agreement in the near future, Azerbaijan’s Deputy Minister of Taxes, Sahib Alakbarov told journalists on May 26. The minister said that among other things, this document will allow the Ministry of Taxes to actively fight against the Azerbaijani residents… – Continue reading
Revenue Minister Todd McClay must release the text of the Inter-Governmental Agreement which affects tens of thousands of Kiwis who were born or have worked in the United States, Labour’s Revenue spokesperson David Clark says. National is about to introduce legislation to ratify an agreement between the US and New… – Continue reading
While financial companies in city gear up for compliance with Fatca, those with mainland affiliates are unlikely to meet requirements Hong Kong financial institutions with mainland affiliates are hoping Beijing signs an agreement with Washington soon on a new US tax disclosure law, because of concerns mainland financial institutions will… – Continue reading
CALGARY – A Calgary-based United States tax expert has recommended to the federal government that Canada follow the lead of other countries and include certain Canadian trusts within the definition of organizations subject to reporting under the recent Intergovernmental Agreement between the Canada and the U.S. “This would eliminate the… – Continue reading
The Inland Revenue Department of Cyprus (“IRD”) will proceed with the signing of Model 1 IGA (Inter Governmental Agreement) with the US Treasury, following the Foreign Account Tax Compliance Act (FATCA). The Model 1 IGA requires Foreign Financial Institutions (FFIs) to report all FATCA-related information to their own governmental agencies,… – Continue reading
NEW YORK – According to a report from Bloomberg, Google (NASDAQ:GOOG) is keeping an ever growing share of its cash reserves outside of the U.S. to use for acquisitions. In a letter to the Securities and Exchange Commission (SEC), Google revealed that it currently has more than $ 30 billion… – Continue reading
Banks prepare to open their books to the long arms of Uncle Sam The countdown is on, with just a month to go before the United States’ Foreign Account Tax Compliance Act (FATCA) goes live on July 1. Aimed at curbing tax evasion by American citizens, an estimated 26,000 foreign… – Continue reading
There’s a bill that will go into effect on July 1. It’s known as H.R. 2847 which contains FATCA (the Foreign Account Tax Compliance Act of 2010). H.R. 2847 also known as HIRE (the Hiring Incentives to Restore Employment Act) was a law passed in March 2010 which will go into… – Continue reading
Legislation aimed at finding American tax evaders would give up personal information of Canadians with ties to the U.S. OTTAWA—If one wants another clear-eyed illustration of the power imbalance between Washington and the federal Conservatives, one need look no further than a tax deal signed between the two countries last… – Continue reading
Course summary: Justin Bender of PWL Capital and Dan Bortolotti of PWL Advisors explain the ins and outs of foreign withholding tax on U.S. and international equity index funds and ETFs. INTRODUCTION Canadian investors get an enormous benefit from diversifying their portfolios with US and international stocks. But this benefit… – Continue reading
WASHINGTON – About 77,000 foreign and U.S. banks and financial institutions, including some in Russia, have registered with the United States to comply with a new law meant to fight tax dodging by Americans, the U.S. Treasury Department said on Monday. Deputy Assistant Secretary for International Tax Affairs Robert Stack… – Continue reading
The United States is targeting so-called offshore tax havens by claiming that billions of dollars of taxes are being evaded. The Foreign Account Tax Compliance Act was passed in 2010 as a revenue raiser, with the simple expectation that the United States can force the world’s financial industry to disclose otherwise… – Continue reading
Prosecutors Trace Accounts Across the Globe as Authorities Pressure Swiss Banks The hunt for money hidden in Swiss bank accounts by U.S. citizens has become a global chase, with prosecutors tracing records to Singapore, the Cook Islands and elsewhere as U.S. authorities increase the pressure on Swiss lenders to turn… – Continue reading
Russian lawmakers and banks are still squabbling about how to join the Foreign Account Tax Compliance Act (FATCA) network after the US closed the door on talks following Moscow’s role in the Ukraine crisis. In recent weeks, Finance Minister Anatoly Aksakov pledged to Russian banks that a new law allowing… – Continue reading
Azerbaijan and the U.S. Internal Revenue Service (IRS) agreed to conclude an intergovernmental agreement on implementation of the Foreign Account Tax Compliance Act (FATCA) by Azerbaijani banks, the Ministry of Taxes of Azerbaijan said on May 21. Starting from July 1, 2014 the banks in all countries should join the… – Continue reading
If any U.S. company seems ripe for moving to an island tax haven, it’s Chiquita. Based in Charlotte, the company’s sale of bananas, grown largely in Central America, accounts for two-thirds of its profits. But Chiquita isn’t bound for the tropics. It’s headed to Ireland, where the climate may be… – Continue reading
The Russian government may place “limitations” on the amount of information that Russian banks can render to U.S. tax authorities under FATCA, a U.S. federal law intended to crack down on tax avoidance by U.S. citizens, Deputy Finance Minister Alexei Moiseyev said Thursday. Moiseyev told journalists in St. Petersburg that Russia will not become “tax agents for the Americans, that… – Continue reading
In recent years, the US Congress and the US Department of Treasury have come to believe that many US taxpayers (including US citizens and green card holders in India) have not been complying with the tax law that requires reporting of worldwide income, including income held in non-US financial institutions…. – Continue reading
Is every item buried in Table S-9 of the President’s budget a big can of worms? The only one I understand is big like a roadside attraction. By my count it’s item 237 out of 373: “Provide for reciprocal reporting of information in connection with the implementation of FATCA.” FATCA… – Continue reading
About two dozen U.S. companies ranging from Liberty Media to Sara Lee have quietly moved their headquarters out of the United States to places like Ireland and Canada and England since 2008 in search of lower corporate income taxes. Few people other than tax techies noticed. But now, thanks to… – Continue reading
US corporations are making record profits in tax havens like Bermuda, the Cayman Islands, and the British Virgin Islands (BVI). Some of the profits exceed the GDP of the host country, with Bermuda’s offshore profits 1643% of total economic output. As a share of Gross Domestic Product (GDP), profits from… – Continue reading
WASHINGTON (Reuters) – Taking aim against corporate tax avoidance, Democrats in the U.S. Congress called on Tuesday for curbs on U.S. multinationals that shift tax domiciles abroad in deals known as “inversions.” While still rare, these deals are becoming more common, with two recently attempted transactions by Pfizer Inc and… – Continue reading
Moving abroad to start a new job can be one of the most exciting yet stressful experiences of your life — but it can also end up saving you a bundle in federal income tax. This is because U.S. expatriates frequently take advantage of the foreign earned income exclusion to… – Continue reading
Following the recent offer by U.S drugmaker Pfizer to acquire British pharmaceutical firm AstraZeneca, congressional Democrats are proposing new limits on the ability of U.S.-based firms to establish foreign residence and thus cut their U.S. corporate tax bill. Even before this latest flap, the Obama Administration proposed curbs on this… – Continue reading
Uncle Sam is poised to poke his pointy nose into the financial affairs of millions of Canadians who have no connection to his country, and – no matter how distasteful you find this – pushing back will only make it worse. This is the gloomy – but credible – conclusion… – Continue reading
Liechtenstein said Friday that it has signed a anti-tax fraud pact with Washington that requires banks in the principality to provide information about accounts held abroad by US taxpayers to US authorities. Under the agreement, Liechtenstein would implement the Foreign Account Tax Compliance Act (FATCA), which came into effect on… – Continue reading
Weeks remain until the July 1 effective date of the Foreign Account Tax Compliance Act (FATCA), which will change the way foreign insurers do business with U.S. brokers. To address those changes, the Council of Insurance Agents & Brokers (CIAB) is developing an online portal to house each foreign insurer’s… – Continue reading
Bank of America tops the list of Charlotte-based companies avoiding big tax bills by keeping profits offshore, according to a new report by a nonprofit tax research and advocacy group. Citizens for Tax Justice found that 301 U.S. Fortune 500 companies disclosed holding nearly $2 trillion in profits offshore. By… – Continue reading
WASHINGTON — European bank Credit Suisse AG pleaded guilty Monday to helping wealthy Americans avoid paying taxes through secret offshore accounts and agreed to pay about $2.6 billion. The Justice Department said it was the largest penalty imposed in any criminal tax case. It is also the largest bank to… – Continue reading
The Chartered Institute of Taxation (CIOT) has voiced concern over the proposed withdrawal of the principal residence election for all taxpayers. The authority has responded to HM Revenue and Customs’ (HMRC) plans to extend capital gains tax (CGT) to non-residents in certain circumstances, and fears the proposal could have a significant… – Continue reading
Swiss bank helped wealthy Americans avoid taxes using off-shore accounts for decades, authorities say Credit Suisse AG’s guilty plea and $2.6 billion payment in a high-profile case brought by the Justice Department are being held out as a warning to foreign banks believed to be helping U.S. taxpayers conceal assets…. – Continue reading
IT’S BECOMING increasingly apparent that the OECD’s plan to reduce tax base erosion and profit-shifting, as laudable as it is, is hugely reliant on the US making significant and drastic alterations to its corporate regime if it is to be successful. The cases of Starbucks and Google have shown us… – Continue reading
More than three quarters of American expats and green card holders who have taken out a supplementary overseas pension contract are able to mitigate the effects of the Foreign Account Tax Compliance Act, it is claimed. The FATCA created controversy when it was announced, as it appeared that people would… – Continue reading
Credit Suisse is pleading guilty to criminal charges and paying a $2.6 billion fine for helping American clients cheat on their taxes over the past decade. The firm helped tens of thousands of Americans hide their wealth, kept lists of companies and accountants who could facilitate tax evasion for clients, and actively recruited U.S…. – Continue reading
The U.S. has extended the time limit for compliance withFATCA, the reporting of its citizens’ financial accounts outside of the country,to the years 2014 and 2015. The Treasury Department of the United States, through the inland revenue service (IRS) has announced that it will take into account the “good faith”… – Continue reading
The head of the Lower House financial markets committee said that until Russia passes a law, any report to US tax authorities about a client accounts in Russian banks would be considered a violation of bank secrecy. MP Natalya Burykina (United Russia) added that bank employees who permit it could… – Continue reading
The Inland Revenue Department of the Republic of Cyprus is expected to sign the Model 1 InterGovernmental Agreement (“IGA”) with the US Treasury in accordance with the provisions of the Foreign Account Tax Compliance Act (FATCA). FATCA is a US tax legislation that was enacted in March 2010 in order… – Continue reading
A new report from the advocacy group Citizens for Tax Justice finds that 301 Fortune 500 companies hold a combined $2 trillion offshore, collectively avoiding $550 billion in U.S. corporate income taxes, while a contrasting report from the Tax Foundation found that U.S. multinational corporations reported paying more than $128… – Continue reading
HumaneWatch.org, a project of the nonprofit Center for Consumer Freedom (CCF), is running a full-page ad today in USA Today calling out the Humane Society of the United States (HSUS) for parking $20 million of donor funds in offshore investment shelters in Bermuda and the Cayman Islands. The practice is only the latest in… – Continue reading
Robert Stack, deputy assistant secretary for international tax affairs with the U.S. Treasury, gave an update on several items in the OECD’s project to combat base erosion and profit shifting at the American Bar Association Section of Taxation’s May meeting. As reported more fully by Transfer Pricing Report’s Kevin Bell, Stack,… – Continue reading
In an effort to tighten rules on corporate tax avoidance through “inversions,” U.S. Senator Tim Kaine joined a group of 13 Senators today to introduce The Stop Corporate Inversions Act of 2014, legislation to address the practice of reincorporating offshore to avoid paying U.S. taxes. The bill is designed to prevent… – Continue reading
