Category: Privacy

The OECD BEPS Project, part III: the impact of BEPS in the United States

This article is the third in our current three part series discussing various impacts of the Organisation for Economic Co-operation and Development’s (OECD’s) efforts to address the perceived global tax problem of base erosion and profit shifting (BEPS). The first article provided an overview of the key aspects of the… – Continue reading

Global Tax Transparency: FATCA, CRS, European FATCA

Understanding FATCA and having a comprehensive FATCA compliance program is essential for financial firms to limit non-compliance risk and meet obligations with relevant IGA’s. The US has made inroads on the Exchange of Information front and tax havens like Switzerland have declared a willingness to meet or even exceed OECD… – Continue reading

Australian financial services firms ‘unprepared’ for FATCA

A litigation suit has been filed against the US federal government arguing the Foreign Account Tax Compliance Act (FATCA) is “unconstitutional” and violates privacy rights, with implications for Australian financial institutions. The controversial FATCA tax legislation – which was introduced by the Obama Administration in 2010 – requires foreign financial… – Continue reading

The Netherlands: Recent Financial, Regulatory and Legislative Developments

With the focus of 2014 being international tax competition, 2015 shows signs of continuing this trend. The European Commission (COM) and European Parliament (EP) are starting to debate and extensively investigate Member States’ tax ruling policies, partly as a result of the LuxLeaks revelations and partly in relation to the… – Continue reading

US govt faces FATCA lawsuit

A litigation suit has been filed against the US federal government arguing the Foreign Account Tax Compliance Act (FATCA) is “unconstitutional” and violates privacy rights, reports the Investor Daily. The complaint was officially filed in a federal court in Dayton, Ohio on Tuesday, and names the Treasury Department and Inland… – Continue reading

Lawsuit by U.S. Presidential Candidate Challenges the Constitutionality of FATCA

Senator Rand Paul, R-Ky., along with six current and former U.S. citizens living abroad, filed a lawsuit, July 14, in the U.S. District Court for the Southern District of Ohio challenging the constitutionality of the Foreign Account Tax Compliance Act (FATCA) and foreign bank account reporting (FBAR) regime. “FATCA eschews… – Continue reading

Pete McMartin: Was offshore real estate data staring us in the face all this time? : B.C. government already asks for proof of citizenship for property transfer tax exemption

The abiding complaint of those who believe offshore buyers are driving the rise in real estate prices in Metro Vancouver is the lack of data to prove it. How can you identify a problem if you can’t quantify it? The corollary to that complaint is the provincial government’s apparent inability,… – Continue reading

European Union: EU Approves 4th Anti-Money Laundering Directive

After almost a year of wrangling, the EU Council and the European Parliament have finally reached an agreement on a new Anti-Money Laundering Directive. The 4th AML Directive expands the scope of its predecessor (which was adopted in 2005, before the global banking scandals and the push towards tax transparency)… – Continue reading

Worldwide: Privacy: What’s Left?

A seismic change in the international private wealth arena is under way. Over 90 jurisdictions have committed to automatically exchange comprehensive financial information on an annual basis under the OECD’s Common Reporting Standard (CRS). The CRS will start in 2016 in over 55 jurisdictions. This article comments on the CRS… – Continue reading

Globalist Assault on Tax Competition Rouses Opposition

As part of what experts call a war on tax competition and low taxes, a coalition of high-tax governments from around the world is working to erect a radical new planetary taxation regime that would further smother what remains of financial privacy and national sovereignty while seriously harming the global… – Continue reading

FATCA privacy singapore bermuda cayman islands jersey canada usa legislation tax information exchange agreements statutory iga

Despite the inevitable move towards automatic exchange of tax information and Common Reporting Standards internationally, there continues to be a steady flow of litigation in the Courts of International Financial Centres such as Bermuda, the Cayman Islands, and Singapore relating to challenges to inter-governmental Tax Information Exchange Agreement (TIEA) requests…. – Continue reading

Governments risk falling short of FATCA demands

Governments around the world could find themselves under-resourced when the Foreign Account Tax Compliance Act deadline for collecting information on US clients arrives in September, one expert has said. Ellen Zimiles, managing director, head of global investigations at US firm Navigant, said governments will be handed an “unprecedented” amount of… – Continue reading

New EU anti-money laundering rules to take effect from 26 June

A raft of reforms to EU anti-money laundering rules will come into force later this month after they were finalised and published in the official journal of the EU, reports Out Law. The fourth Anti-Money Laundering (AML) Directive will take effect from the 26 June. EU countries will have two… – Continue reading

Hong Kong needs to catch up with latest global tax standards

Hong Kong, as a world financial centre, will undertake legislative changes to implement automatic exchange of information of account holders Exchange of information is a recognised tool to enhance tax transparency and combat cross-border tax evasion. As a major financial centre, Hong Kong is committed to following global standards. While… – Continue reading

Coalition says kidnap risk means wealthy need tax reporting exemptions

Abbott government wants to exempt 1,000 private companies from tax transparency measures, partly because of claims of abduction threats The Abbott government is pressing ahead with plans to exempt about 1,000 Australian-owned private companies from tax transparency measures after claims wealthy owners could face kidnapping threats. After the kidnapping suggestion… – Continue reading

FATCA is an attack on Canadian sovereignty

Retired Canadian lawyer Ginny Hillis has a message for the U.S. Congress. “They have no rights over me. None.” Hillis detests the “arrogance” of Congress for “imposing their laws on a sovereign nation with the complicity of that sovereign nation’s government.” America’s Foreign Account Tax Compliance Act (FATCA) “should embarrass… – Continue reading

IRS Offers Resources for Taxpayers Abroad

As expatriate taxpayers face increasing difficulties from implementation of the Foreign Account Tax Compliance Act, the Internal Revenue Service is offering YouTube videos and other online resources to assist taxpayers overseas. The IRS noted that the June 15 filing deadline for Americans abroad is approaching soon, so it is launching… – Continue reading

UK: Privacy For Beneficial Owners Of Companies

Controversial recent changes to UK and EU law combined with parallel G8, G20 and OECD measures risk the beneficial owners of certain companies being subjected to unwanted public scrutiny. However, help is at hand for affected individuals. The political background Reacting to concerns about tax evasion, money laundering and the… – Continue reading

Hong Kong: Will The Very Efforts Designed To End The Offshore Industry Finally Legitimise It?

Since the beginning of the global financial crisis, politicians, the media and people on the street have engaged in a series of “blame games” to point fingers and punish those responsible for their own economic ills. For the past few years, one “culprit” has been firmly in the spotlight –… – Continue reading

France and Germany behind plans for ‘common EU corporation tax’

France and Germany want to see common basic corporation tax rates across the EU, according to reports France and Germany are pushing plans to introduce a minimum corporation tax rate across the continent, it was reported today, in a move that could result in higher taxes on British companies. European… – Continue reading

British Virgin Islands: When Life Gives You Lemons… The BVI And The Global Push For Tax Transparency

It is quite clear that the more recent past has seen a notable shift in the debate from various supranational initiatives implemented over the years, designed to curtail the activities of smaller offshore financial centres, towards the real issues of tax transparency, regulatory cooperation and managing systemic risk in the… – Continue reading

Chairman Royce, Rep. Pallone welcome US-Amenia Trade & Investment Framework Agreement

The advantages of off-shore investments Two of the top reasons that South African investors are given to encourage offshore investments are that going offshore diversifies your portfolio and that it gives you access to sectors you could never find on the resource-heavy JSE. “While those are not reasons to be… – Continue reading

FATCA – implications for financial institutions

Introduction to FATCA On December 16 2013 Malta and the United States entered into an intergovernmental agreement (IGA) to implement rules and regulations under the Foreign Account Tax Compliance Act (FATCA). FATCA, enacted in 2010 by the United States, requires US taxpayers and financial institutions to report financial information to… – Continue reading

FATCA, Tax Havens, American Competitiveness And Hypocritical Politicians

While the Bureaucrat Hall of Fame and Moocher Hall of Fame already exist, the Hypocrite Hall of Fame is just a concept. But once it gets set up, Congressman Alan Grayson of Florida will definitely be a charter member. Here are some passages from a column in the Tampa Bay… – Continue reading

Uruguay – South America’s Best Kept Secret

“Uruguay has now definitely earned its long-time nickname — the Switzerland of Latin America.” That’s what I wrote several months ago during my first visit to this small, south Atlantic costal country wedged between Brazil and Argentina. For the last week, I have been enjoying my second visit to Uruguay,… – Continue reading

Complex transactions challenge banks’ money-laundering battle

The nation’s anti-corruption campaign and drive to track down economic fugitives and corrupt officials may help banks crack down on money laundering, analysts said. Banks have been updating watchlists for suspected money-laundering activities and heightening scrutiny of transactions and accounts. But they may be challenged by new forms of money… – Continue reading

Costa Rica, the OECD and FATCA: What You Should Know

Now that Costa Rica has been formally invited to go through the process of becoming a candidate nation worthy of joining the Organization for Economic Cooperation and Development (OECD), financial advisors and legal professionals are starting to ponder how their clients will be impacted by this new chapter in our… – Continue reading

Truth Be Told: International Pension Plans in Bermuda

With its enviable reputation in offshore trusts, pensions and insurance, Bermuda is an ideal jurisdiction for employers to establish international pension and employee benefit plans (IPPs). Global organisations may consider establishing Bermuda IPPs for employees who work outside their home country or the home country of both the employees and… – Continue reading

Why Did The U.S. Pay This Former Swiss Banker $104 Million?

Bradley Birkenfeld was released from federal prison in August 2012 after serving 2½ years for his role as a Swiss banker hiding millions of dollars for wealthy American clients. Five weeks later, he found himself in the kitchen of a small rental house in Raymond, New Hampshire. At that moment,… – Continue reading

Factbox – HSBC must weigh up UK and Hong Kong regulatory regimes

LONDON (Reuters) – HSBC shares have rallied after the bank said it was reviewing whether to move its headquarters out of Britain and potentially back to its former home in Hong Kong. The following are some of the regulatory issues raised if Europe’s biggest bank were to relocate to Hong… – Continue reading

The FBAR tax plight: The maddening implications of when Uncle Sam deems you have signing authority

One million American citizens in Canada face double tax troubles. Max Reed explores these challenges in a spring series. The United States has two tools with which to collect information on accounts held by its citizens, FATCA and FBAR. Lots of attention has been paid to FATCA, less so to… – Continue reading

Hong Kong Consults On Tax Info Exchange

Hong Kong’s Government has launched a consultation on proposals to apply, with certain adaptations, new international standards on the automatic exchange of account information (AEOI) in tax matters. The Government’s AEOI proposals would alter the definition of financial institutions (FIs), the information FIs would be required to secure from account… – Continue reading

How Gilded Ages End

Americans have overcome oligarchy before — and there’s no reason we can’t do it again. Rising inequality seems to pose an insurmountable political problem. If the underlying causes are technological change and globalization, the forces appear to be unstoppable. Alternatively, if the causes are primarily political and involve the power… – Continue reading

Consultation on Automatic Exchange of Financial Account Information in Tax Matters in HK launched

Hong Kong (HKSAR) – The Government today (April 24) launched a consultation exercise to gauge views on proposals to apply, with adaptations for Hong Kong, the prevailing international standards on the automatic exchange of financial account information in tax matters (AEOI). On the basis of the Organisation for Economic Cooperation… – Continue reading

CONFERENCE PREVIEW: Succession, Cross-Border Tax And Trusts Under Spotlight In Geneva

Moves to create a supposed level playing field for succession issues in Europe, along with more established themes around automatic exchange of information and US extra-territorial tax powers make their appearance in a major Geneva-based conference later in April. Figures from the world of wealth management will gather at the… – Continue reading

Effects of (FATCA) on U.S. Citizens make Wyoming Asset Protection a Rival to Offshore Tax-Havens

CHEYENNE, WY, April 17, 2015 /24-7PressRelease/ — OUTPOST PROVISIONING LLC today announced the launch of its “Wyoming…the Offshore Alternative” campaign alongside release of its Wyoming Paymaster Purpose Trust product. “Wyoming…The Offshore Alternative” touts Wyoming as being the Offshore-equivalent for wealth protection without the inconvenience, scrutiny, compliance costs and risks involved… – Continue reading

Europe Preparing Another Antitrust Case Against Google

European Commissioner for Competition Margrethe Vestager is preparing to reopen the antitrust case against Google following the settlement with the search giant under Joaquin Almunia two years ago. Vestager has been speaking to various advisors both inside and outside of Europe, alongside companies affected by Google’s anti-competitive search results. She… – Continue reading