Category: Banking Secrecy

Wayne Swan: Tax avoidance impoverishes us all. Fighting it requires challenging the powerful

few days before Christmas, in the full light of an Australian summer, the Australian tax commissioner published the tax details of 1,500 large corporate taxpayers which showed a staggering one-third of these companies paid no tax in 2014. This transparency measure was part of a wider package of ground-breaking legislation… – Continue reading

Irish banks collect data in new OECD worldwide tax clampdown

The first stage of an un-precedented worldwide crackdown on tax evasion and banking secrecy has got under way, with Irish banks this week starting to collect details of non-resident bank account holders. The collection of information follows on from the agreements brokered by the Organisation for Economic Co-operation and Development… – Continue reading

Banks because FATCA agreement made changes in information systems

Several Slovak banks are already preparing for the new obligations arising from the agreement FATCA (Foreign Account Tax Compliance Act). Because it had to make changes in particular in its information systems. “Following the agreement FATCA UniCredit Group has developed separate software for the purpose of fulfilling the obligations under… – Continue reading

Global dragnet puts pressure on tax evaders as year-end deadlines loom

Tax cheats are facing a series of year-end deadlines to come clean, as an international dragnet affecting both wealthy Canadians with offshore accounts and Americans in Canada who have failed to file U.S. tax returns keeps tightening. Lawyers say some Canadians with Swiss bank accounts have received letters demanding written… – Continue reading

A lesson in semantics

The announcements coming out from both the CI government and the UK government on beneficial ownership can provide a lesson in semantics. The arguments are seemingly centered on the meanings of the words “public” versus “centralised.” The “simple definition” of semantics from the Merriam-Webster Dictionary is “the study of the… – Continue reading

Hervé Falciani — The SwissLeaks Whistleblower

Most people with undisclosed Swiss bank accounts have, by definition, something to hide. Secrets, however, sometimes don’t remain secret, especially when they involve someone else’s money. While disclosing the names and financial details of Swiss bank account holders has recently come into vogue, a whistleblower may have just as murky… – Continue reading

Lebanese banking unaffected by money laundering fight: Torbey

BEIRUT: Lebanon’s commitment to fighting money laundering does not hurt banking secrecy but, to the contrary, is in the interests of the banking sector, said Joseph Torbey, president of the Association of Banks in Lebanon. “Lebanon’s serious commitment to fighting money laundering will prevent the escape of investments from Lebanon… – Continue reading

Switzerland: Towards the end of the tax gifts to foreign companies

For the Socialist Senator Roberto Zanetti, the reform is an open-heart surgery, which must be done with great accuracy. Under pressure from the EU, G20 and the OECD, also Switzerland is obliged to give up his special tax regimes for holding companies and management companies. After years of negotiations with… – Continue reading

UK enforcement agencies to visit Cayman

(CNS): The UK is expected to send law enforcement officials to Cayman in the New Year to enhance the current cooperation regime between this jurisdiction and the authorities in Britain regarding financial crime and money laundering. Financial Services Minister Wayne Panton said that experts are coming at Cayman’s invitation to… – Continue reading

Guiding Clients on the IRS Offshore Voluntary Disclosure Program

One of today’s most talked about tax topics is the Offshore Voluntary Disclosure Program of 2014 (OVDP) and the compliance of individuals, institutions, and governments with the Foreign Account Tax Compliance Act. However, it is vital for one to understand why the IRS provided the public with the opportunity represented… – Continue reading

Worldwide: A Guide To The Top 20 Offshore Fund Locations

There are a variety of benefits to moving offshore, yet few would argue the assertion that tax neutrality is paramount among them. As anyone familiar with the phrase “tax haven” would surely recognize, many countries offer strongly favorable tax terms as an incentive to draw new business. Written by CT… – Continue reading

US Justice Department Announces Two Banks Reach Resolutions Under Swiss Bank Program

The Department of Justice announced today that Cornèr Banca SA (Cornèr) and Bank Coop AG (Bank Coop) reached resolutions under the department’s Swiss Bank Program. 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… – Continue reading

India, Switzerland improve cooperation on tax matters

NEW DELHI: With India stepping up efforts to bring back illicit funds stashed abroad, Switzerland has said both sides have improved their cooperation on tax matters following several high-level meetings. Over the past few months, both countries have been working closely on mutual administrative assistance, according to the Swiss government…. – Continue reading

During the exchange of information, against the tax amnesty

Banking secrecy no longer protects foreign clients: Council of States approved the transition to the automatic exchange of information. At the same time, he rejected the idea of a tax amnesty. Rejection of the tax amnesty was the main surprise of the discussion of the Government’s project to move to… – Continue reading

The minister who dismantled Swiss banking secrecy

As the curtain falls on Eveline Widmer-Schlumpf’s career in government, one of the most abiding legacies she leaves behind is the collapse of Swiss banking secrecy under her watch as Finance Minister. Her predecessor, Hans-Rudolf Merz, told the world in 2008 that it would “break its teeth on Swiss banking… – Continue reading

More than 50 banks which helped American clients dodge tax in Swiss bank accounts receive immunity from criminal prosecution in US

More than 50 banks which helped American clients dodge tax in Swiss bank accounts have received immunity from criminal prosecution in the US. The firms, which include UK giant Standard Chartered, Germany’s biggest lender Deutsche Bank, and France’s BNP Paribas, have reached plea bargains with the US Department of Justice…. – Continue reading

Luxembourg plots to steal London’s financial crown

The tiny nation wants to become “the European location of choice” for global financial services firms, and is already the biggest centre for fund management in the EU, reports the Telegraph. Luxembourg’s finance sector has set out plans to become Europe’s leading financial centre in the next five years, plotting… – Continue reading

Press release – Ending EU citizens’ bank secrecy in Liechtenstein

An EU deal with Liechtenstein, which will make it harder for EU citizens to hide cash from the tax man in bank accounts there, was endorsed by Parliament in a vote on Wednesday. Under the deal, the EU and Liechtenstein will automatically exchange information on the bank accounts of each… – Continue reading

Senate vote lays groundwork to end banking secrecy

Swiss Senate has sealed the end of banking secrecy for foreign clients, following the House of Representatives in accepting the legal groundwork for the automatic exchange of information. The decision paves the way for a “decorous funeral for tax secrecy,” as senator Roberto Zanetti of the leftwing Social Democrats put… – Continue reading

Miscalculate tax on a holiday home or inheritance? You could soon be branded a criminal

Holiday home owners and others who inadvertantly break new tax rules could be ‘criminalised’ Holiday home owners who miscalculate tax owed, and those inheriting offshore money, face having their income wiped out entirely due to new penalties and punishments being introduced in the New Year. HM Revenue & Customs has… – Continue reading

The Changing Face of Luxembourg Finance

“Luxembourg is famous for two things: its steel industry and its rose cultivation industry”. This quote from an Italian guidebook of the 1930s was uttered by Luxembourg’s Finance Minister Pierre Gramegna at the annual conference of the Luxembourg Directors’ Association on 17 June 2015[1]. The economic outlook of the tiny… – Continue reading

UK: HMRC to be given new powers to demand personal financial details from Bermuda

Tax authorities in Britain will be given new powers to demand personal financial details from Bermuda, reports the Royal Gazette. The Island is one of 90 countries that will begin to share the financial details of British residents with HM Revenue & Customs (HMRC) from January under new plans to… – Continue reading

Destination ‘filthy rich’: Where the wealthy go to get even richer

WELCOME to Switzerland. A mountainous country where nothing comes cheap but many of the world’s filthy rich come to grow their fortunes. The ongoing relationship between the wealthy and Switzerland looks set to only strengthen as the super rich get richer, according to a report released on Friday. That’s despite… – Continue reading

Tax man agrees: Large fortunes need probing to nab dodgers

Santo Domingo.- Internal Taxes (DGII) director Guarocuya Feliz on Sunday agreed with Institutional and Justice Foundation (FINJUS) vice president Serbio T. Castaños that large fortunes need to be investigated over tax evasion. “This position is in line with the work the institution carries out to eliminate banking secrecy to ensure… – Continue reading

United States Ranks Third Among Tax Havens For Foreign Companies On Financial Secrecy Index By Tax Justice Network

Tax Justice Network’s biannual Financial Secrecy Index revealed United States as one of the tax havens for foreign businesses despite its Foreign Account Tax Compliance Act (FATCA). The Huffington Post noted Nov. 2 that the US landed the third spot behind Hong Kong and Switzerland as the tax havens for… – Continue reading

HSBC whistleblower given five years’ jail

World Bulletin / News Desk Herve Falciani, the former HSBC employee whose disclosures uncorked the “Swissleaks” scandal on bank-supported tax evasion, was sentenced in absentia on Friday to five years in prison, Switzerland’s ATS news agency said. Falciani, who worked as an IT specialist with HSBC, was convicted of industrial… – Continue reading

Germany gives Greece 10,000 records on possible tax cheats

BERLIN (AP) — Germany has shared some 10,000 records on possible Greek tax cheats with Athens. Authorities in the German state of North Rhine-Westphalia say the records concern Greek individuals and companies who had almost 4 billion Swiss francs stashed in Swiss bank accounts. Bank secrecy rules in Switzerland long… – Continue reading

Julius Baer’s Meier Says Future for Advice Is Local

Veteran banker says India purchase reflects client demand for onshore private banking advice. Julius Baer’s Asia Pacific head Thomas Meier is preparing to leave Asia after 20 years, but he isn’t leaving Asia behind. The veteran banker, who also worked at Credit Suisse and Deutsche Bank, will continue to oversee… – Continue reading

Clock Ticking for U.S. Holdouts as BNP Joins Swiss Tax Pact

The clock is ticking for American tax dodgers around the world after BNP Paribas SA’s Swiss unit and two other banks joined a U.S. program to avoid prosecution, revealing the exact methods of Swiss bankers’ legendary discretion. BNP agreed to pay $59.8 million in a program that has brought in… – Continue reading

Top tax havens for the rich

Offshore tax havens came under fire after the global financial crisis in 2008. Front and center among the countries calling for transparency was the U.S., which made a stand against Switzerland in particular, by demanding release of the names of ultra-rich account holders. So it might surprise you to learn… – Continue reading

Tax Transparency – the Common Reporting Standard: Implications for South Africa

Globally, taxpayers are becoming more interdependent, and engage in cross-border financial activities with more regularity. With this, comes the need for enhanced co-operation and understanding across countries on issues such as tax administration and transparency, to curb tax evasion and ensure a fair allocation of taxes to tax jurisdictions. “The… – Continue reading

EU Savings Directive repealed

On November 10th 2015, the European Council announced that the EU Savings Directive 2003/48/EC (EUSD) has been repealed in order to eliminate the overlap with other legislation developed in the aspect of preventing measures of tax evasion. Brief Background The 2003 EUSD, which originally came into effect on 1 July… – Continue reading

FATCA Helps IRS Net £5 Billion In Lost Tax

The US Foreign Account Tax Compliance Act (FATCA) has helped grab £5.17 billion in lost tax held in secret offshore bank accounts. The Internal Revenue Service (IRS) has revealed the figures in a FATCA update. The IRS says the controversial law has made identifying offshore cash and investments that taxpayers… – Continue reading

Indonesia to end ‘bank secrecy’ in 2017

Indonesia is set to end its “bank secrecy” policy in September 2017, allowing the country to exchange tax information with other countries, which would be a major step in the fight against tax evasion and financial fraud. Finance Minister Bambang Brodjonegoro said that Indonesia would be an early adopter of… – Continue reading

Brazil eyes offshore cash in bid to boost gov’t revenue

PSDB amendment in Lower House cuts Speaker Cunha out of deal, but Senate still has final say BRASILIA — The Lower House of Brazil’s Congress has approved a controversial amnesty bill for undeclared offshore assets, despite criticism from opposition lawmakers who say it would allow the laundering of illegally gained… – Continue reading

The FATCA window

The implementation of the Foreign Account Tax Compliant Act is showing consistent progress with thousands of banks in over 150 countries agreeing to share financial accounts data of their US clientele with US taxation authorities. This clearly indicates the firm resolve of the US administration to make this initiative a… – Continue reading

Brazil signs agreement for information on assets in tax havens

Presidency sent to Congress ratification of treaties with Jersey, Guernsey, the Cayman Islands and Uruguay; text follows the G20 guidelines The Presidency referred for evaluation of Congress four agreements for the exchange of tax information (TIEA, which stands for the English term “Tax Information Exchange Agreement”) entered into with Uruguay,… – Continue reading

Ghana weak laws offer 67% tendency for illicit financial flows

Ghana’s financial secrecy – the tendency to facilitate tax evasion, money laundering and illicit financial transfers – has been rated at a fairly high 67 per cent. The Tax Justice Network, an organisation concerned with tax havens and tax evasion, ranked Ghana 48th out of 92 territories, in its 2015… – Continue reading

FinCEN’s expanding application of the Bank Secrecy Act and anti-money laundering regulations

The Financial Crimes Enforcement Network (FinCEN) is again flexing its regulatory muscles by increasing the breadth and scope of the types of entities regulated by the Bank Secrecy Act (BSA). Among other things, the BSA requires certain types of financial institutions to implement anti-money laundering (AML) programs and file suspicious… – Continue reading

Fighting tax evasion: EU and Andorra finalise negotiations on new tax transparency agreement

Today the EU and Andorra initialled the text of a new tax transparency agreement, marking another important step forward in the fight against tax evasion. Under the new agreement, Andorra and EU Member States will automatically exchange information on the financial accounts of each other’s residents from 2018. Pierre Moscovici,… – Continue reading

Canada: Canadian Challenge To FATCA

On August 4 and 5, 2015, the FC heard oral arguments in a lawsuit—commenced on August 11, 2014 by two Canada-US citizens—that challenges the law implementing the Canada- US intergovernmental agreement (IGA) relating to FATCA (Virginia Hillis et al. v. The Attorney General of Canada et al., court file no…. – Continue reading

Why Billions of Dollars in Estate Taxes Go Uncollected

They say the only certain things in life are death and taxes, but a large number of non-U.S. citizens may have found a way to avoid at least one of those. Under U.S. tax law, the estates of foreign holders of U.S. assets, such as stocks, real estate and valuables,… – Continue reading

German state buys USB said to hold evidence of €600m in tax avoidance

Tax authorities in the German state of North Rhine-Westphalia have purchased a USB stick reported to hold evidence of tax avoidance and illegal deals worth more than €600m (£427m). Investigators are believed to have paid more than €5m for the data, the highest amount handed over for such information, according… – Continue reading

U.S. Placed Above Cayman Islands in Financial Secrecy Blacklist

The U.S. government’s refusal to take part in a global system for exchanging bank data has moved it above the Cayman Islands in a financial secrecy list compiled by the Tax Justice Network. The U.S. trails only Switzerland and Hong Kong in a league of offshore havens after refusing to… – Continue reading

Black money: Will Modi government provide security in exchange for details to HSBC whistleblower Herve Falciani?

Claiming that a lot of information on illicit funds is lying unused by the Indian authorities, HSBC whistleblower Herve Falciani said on Tuesday that he is willing to cooperate with the investigative agencies in their black money probe but would need protection in return. He also claimed that millions of… – Continue reading