Skip to comments.US explores treaty to nail American tax defaulters in India
Posted on 11/09/2012 7:23:59 AM PST by James C. Bennett
WASHINGTON, D.C.: The US, on Wednesday, said it is working on an inter-government engagement with India and other countries to check non-compliance by American taxpayers using foreign bank accounts in their jurisdictions.
Through these engagements with more than 50 countries, the US is looking to implement information reporting and withholding tax provisions, commonly known as the Foreign Account Tax Compliance Act (FATCA).
Enacted in 2010, FATCA aims at checking non-compliance by US taxpayers using foreign accounts. It requires foreign financial institutions to report to the US tax department information about accounts held by US taxpayers, or by foreign entities in which they hold a substantial ownership interest.
Concerns have been raised in the past by various foreign banks and other financial institutions about the FATCA provisions, as it is feared that they might lead to increased compliance costs and might infringe upon the local financial secrecy laws of the jurisdictions concerned.
An agreement with India will allow the US tax department to seek information from the financial institutions operating in that country about their clients who are liable to pay tax in the US.
In a statement, the US Treasury Department said last night it has engaged with more than 50 countries and jurisdictions around the world to improve international tax compliance and to implement FATCA provisions.
"The jurisdictions with which Treasury is working to explore options for inter-governmental engagement include Bermuda, Brazil, the British Virgin Islands, Chile, the Czech Republic, Gibraltar, India, Lebanon, Luxembourg, Romania, Russia, Seychelles, Sint Maarten, Slovenia, and South Africa," it said, adding that it has already finalized an agreement with the UK.
The jurisdictions with which it is in process of finalising an agreement or it hopes to conclude negotiations by year-end include: France, Germany, Italy, Spain, Japan, Switzerland, Canada, Denmark, Finland, Guernsey, Ireland, Isle of Man, Jersey, Mexico, the Netherlands, and Norway.
"Jurisdictions with which Treasury is actively engaged in a dialogue towards concluding an intergovernmental agreement include: Argentina, Australia, Belgium, the Cayman Islands, Cyprus, Estonia, Hungary, Israel, Korea, Liechtenstein, Malaysia, Malta, New Zealand, the Slovak Republic, Singapore, and Sweden," the Treasury said.
Negotiations with many of these jurisdictions are expected to be concluded by the year-end, it added.
"By working cooperatively with foreign governments and financial institutions, we are intensifying our ability to combat tax evasion while minimizing burdens on financial institutions," Treasury Assistant Secretary for Tax Policy Mark Mazur said.
There will be no where to hide for US citizens fleeing obama’s tyranny...
The country is bankrupt, so it must steal wealth wherever it can find it.
The only ways to escape the long arms of the IRS:
1. Have no income.
2. Move to a another country AND renounce your U.S. citizenship.
Heck, even dying doesn’t work anymore, because if you leave any sizable estate behind, FedGov will take a big chunk of it from your heirs.
I have 2 accounts here in Japan... 1 with the post office (it runs like a bank) and another with a Japanese Bank. I have used NEITHER since Obama was elected. I told my employer to give me cash direct (the government here has direct access to any and all bank accounts, including the postal account). Getting double taxed (once by Japan.. then USA, even though I am not working in the USA) is NOT nice. :/
Set one up in Philipines under your girlfriend`s name there- They can never track it. The families there are pretty good at business deals and do not waste the money at all. They usually invest it, not squander it coz they want to make money. CAGR there is 15-25%, -better than a bank. If you are married tell your wife it is as business deal, which it is, only way to make some real money. They have to grease the local officials` hands but the govt there does not bother anybody about biz very much there as long as they grease their palms a little every month. it`s the way of biz there.