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Foreign banks to report on Americans trying to evade taxes as US FACTA starts July 1
The Voice of Russia ^ | 07/01/2014

Posted on 07/02/2014 7:15:58 AM PDT by SeekAndFind

US Foreign Account Tax Compliance Act (FATCA) that allows banks worldwide to reveal information about their depositors, takes into effect on July 1. Under the new act all foreign banks are required to reports all offshore accounts of the US citizens.

Banking centers like Switzerland and Luxembourg that agreed to the US Foreign Account Tax Compliance Act (FATCA) will have to begin turning over account names and other data to US financial authorities so that they can tax unreported income.

According to the Internal Revenue Service, US citizens will have fewer options to stash their cash offshore away from the US tax agency.

The new Act has forced thousands of US expatriates to give up their citizenship in order to escape the IRS's claims. FATCA has also targeted the business of offshore banking centers, which have long marketed account secrecy to depositors from around the world.

(Excerpt) Read more at voiceofrussia.com ...


TOPICS: Culture/Society; Foreign Affairs; Government; News/Current Events
KEYWORDS: citizens; expats; facta; irs; tax; taxevasion

1 posted on 07/02/2014 7:15:58 AM PDT by SeekAndFind
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To: SeekAndFind

What does the IRS plan to do to overseas banks that don’t comply?


2 posted on 07/02/2014 7:17:01 AM PDT by Steely Tom (How do you feel about robbing Peter's robot?)
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To: SeekAndFind

seems they only have compliance by consent.

this law is probably one of those designed to catch “little people” since the larger depositors rarely use their own names and instead use trusts and simply keep profits offshore.


3 posted on 07/02/2014 7:18:53 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Steely Tom

RE: What does the IRS plan to do to overseas banks that don’t comply?

FATCA turns foreign banks and other financial institutions into enforcement arms of America’s Internal Revenue Service (IRS). They must choose between handing over information on clients who are ‘U.S. persons’ or handing 30 percent of all payments they receive from America to Uncle Sam.


4 posted on 07/02/2014 7:19:43 AM PDT by SeekAndFind
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To: Steely Tom

“What does the IRS plan to do to overseas banks that don’t comply?”

*****

A 30% withholding of all U.S.-sourced payments. In other words, confiscation of nearly 1/3 of any funds that go to the overseas banks from any U.S. source, including corporate dividends.


5 posted on 07/02/2014 7:21:35 AM PDT by peyton randolph (Show me the man and I will find the crime. - Lavrenti Beria)
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To: SeekAndFind

Which foreign countries’ banks have declined to comply?


6 posted on 07/02/2014 7:21:58 AM PDT by JimRed (Excise the cancer before it kills us; feed & water the Tree of Liberty! TERM LIMITS NOW & FOREVER!)
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To: Steely Tom

WHY would a bank turn over it’s private account’s data to a foreign nation ?


7 posted on 07/02/2014 7:22:03 AM PDT by knarf (I say things that are true .. I have no proof .. but they're true.)
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To: longtermmemmory

This one regulation by itself may well cause another drop in GDP during the third quarter of this year, owing to both the uncertainty it engenders and the fact that it will drive out significant amounts of foreign capital.

This is one UGLY and un-American piece of law and I wonder why Republicans don’t make it an issue...

The regulations are vague about which non-bank entities are “financial institutions” — a definition that can be infinitely elastic.

As The British publication, The Economist notes, there is also confusion about the definition of a U.S. person.

Here’s what they observer:

“The definition is broad and includes not only citizens, but current and former green-card holders and non-Americans with various personal and economic ties to the United States.”

The America we live in now is NOT the America our founders envisioned it to be.


8 posted on 07/02/2014 7:22:42 AM PDT by SeekAndFind
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To: knarf

rather, why would a bank AGREE to such a scheme ?


9 posted on 07/02/2014 7:23:03 AM PDT by knarf (I say things that are true .. I have no proof .. but they're true.)
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To: SeekAndFind

This is stealth capital controls.

Even if you just want to be prudent and have some money out of immediate US gov’t reach, and you report it, the foreign banks won’t take your business, and the IRS has rules that are so difficult to interpret that you can easily make a mistake and be subject to a confiscatory penalty.


10 posted on 07/02/2014 7:24:10 AM PDT by Pearls Before Swine
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To: knarf

RE: WHY would a bank turn over it’s private account’s data to a foreign nation ?

The need not, if they don’t do business in the USA.

But if they do, they have no choice. Think about it, why did UBS ( a Swiss bank ) and Credit Suisse disclose the names of their American depositors, essentially making Switzerland’s bank secrecy laws null and void?

Simply — they have a HUGE PRESENCE in the USA.

FATCA turns foreign banks and other financial institutions into enforcement arms of America’s Internal Revenue Service (IRS). They must choose between handing over information on clients who are ‘U.S. persons’ or handing 30 percent of all payments they receive from America to Uncle Sam.


11 posted on 07/02/2014 7:24:54 AM PDT by SeekAndFind
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To: SeekAndFind
Americans Renouncing Citizenship Up 221%, All Aboard The FATCA Express
12 posted on 07/02/2014 7:28:26 AM PDT by Paine in the Neck (Socialism consumes EVERYTHING)
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To: SeekAndFind

Gee. Does this include illegals sending money to banks in their homelands?

I didn’t think so.


13 posted on 07/02/2014 7:32:05 AM PDT by VanShuyten ("a shadow...draped nobly in the folds of a gorgeous eloquence.")
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To: Pearls Before Swine
This is stealth capital controls.

Sure - that was the whole point. Gin up faux outrage about a few billionaires renouncing citizenship and use it to pass totalitarian legislation guaranteeing the US Government de facto ownership of all of its citizens and their assets. And hardly a peep (excepting Rand Paul) from any so-called "conservatives" in Congress.

14 posted on 07/02/2014 7:32:58 AM PDT by Mr. Jeeves ([CTRL-GALT-DELETE])
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To: VanShuyten

This is about the US government running out of money to fund welfare and all the goodies the 47% needs ( yes, illegals included ). Where are you going to find the money to house these illegals, educate them, and pay for their healthcare?

Someone has to pay... and if they have money elsewhere, Uncle Sam wants it.


15 posted on 07/02/2014 7:34:39 AM PDT by SeekAndFind
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To: Mr. Jeeves

Re stealth capital controls:

It’s amazing that no one seems to notice, isn’t it?

When I was a kid, we’d hear about how the non-free countries, like Soviet Russia, Nazi Germany, or even the Latin American dictatorships, would trap their citizens’ assets in the country. Even if you could get out, you couldn’t take it with you. In Germany, people were sewing diamonds into their coats to get out a small fraction of what they’d worked all their lives for.

So, now, in the U. S., which used to be the home of the free in actuality as well as in name only, you can’t take it with you either, unless you forsake your citizenship. And even that is considered a capital transaction event, triggering income taxes. Now, you can’t even have a savings account abroad because no one will take you as a customer.


16 posted on 07/02/2014 7:41:30 AM PDT by Pearls Before Swine
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To: SeekAndFind

This will likely encourage “trusted” offshore underground microbanks, that will likely be lumped together with “money launderers”, though they are just avoiding this economic imperialism.

The underlying arrogance is in effect declaring all US citizens to be “subjects” of American law, no matter where they are. This is little different than what other tyrannical regimes have done by dispatching agents around the world to force compliance of their expat communities.

The groundwork for this was laid when congress passed a law that authorized US Federal Marshals to effectively kidnap, overseas, Americans and others the US government was irritated with, if the country they were in refused extradition.

But as long as these microbanks remain discreet, they can get away with it.


17 posted on 07/02/2014 7:45:44 AM PDT by yefragetuwrabrumuy ("Don't compare me to the almighty, compare me to the alternative." -Obama, 09-24-11)
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To: SeekAndFind

This sounds like a golden opportunity for the First Sovereign Bank of Sealand to accumulate some massive wealth from depositors who wish their financial affairs kept confidential.


18 posted on 07/02/2014 7:47:53 AM PDT by IronJack
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To: SeekAndFind

Setup overseas with a foreign national to hold escrow collateral funds in their travel & expanse account not in a bank [or in a foreign real estate escrow account, not a bank.] matching those funds in a US bank; then Cash Out when you need it overseas.


19 posted on 07/02/2014 7:57:29 AM PDT by bunkerhill7 ("The Second Amendment has no limits n firepower"-NY State Senator Kathleen A. Marchione.")
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To: bunkerhill7

Or figure out how politicians hide their money overseas then emulate them.


20 posted on 07/02/2014 7:59:05 AM PDT by Texas resident (The democrat party is the CPUSA)
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To: knarf

I have read of some banks refusing to allow Americans to hold accounts

Makes life tough for some expats


21 posted on 07/02/2014 7:59:23 AM PDT by silverleaf (Age takes a toll: Please have exact change)
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To: silverleaf; AlexW
when I visited the Philippines in '09, I used my bank card at any number of ATMs

When I left, I left a spare account card with my then fiancee and transferred money from one account (my active one) to "hers", thus providing real time money to her.

What DO ex pats do ?

22 posted on 07/02/2014 8:56:37 AM PDT by knarf (I say things that are true .. I have no proof .. but they're true.)
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To: SeekAndFind

It all sounds like a great excuse for a bank-run. Everybody withdraw it all, ALL at once!


23 posted on 07/02/2014 9:00:38 AM PDT by PrairieLady2
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To: bunkerhill7

RE: Setup overseas with a foreign national to hold escrow collateral funds in their travel & expanse account not in a bank [or in a foreign real estate escrow account, not a bank.] matching those funds in a US bank; then Cash Out when you need it overseas.

_________________________

The most flexible people are those who have DUAL passports. They can always open a bank account in a foreign bank with their other passport.


24 posted on 07/02/2014 9:07:16 AM PDT by SeekAndFind
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To: IronJack

RE: First Sovereign Bank of Sealand

Where is that in the world map and who lives there?


25 posted on 07/02/2014 9:09:05 AM PDT by SeekAndFind
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To: knarf

“What DO ex pats do ?”
____________________________________________
I have had NO American banking since 2004.
My last America card, AMEX, expired in 2004. I was then in central Europe. I did not renew, as the fee went way up, and very few places in central Europe took it.
I had a bank account and MasterCard in Slovakia. I doubt that there was any reporting to the US government.
When I moved to the Philippines I closed out the Slovak accounts and opened an account in a Philippine bank. They also gave me a MasterCard.
I do get Social Security. It is direct deposited into my Philippine bank. It is in my account on the 4th of each month, like clockwork. I will check online tomorrow to make sure that it is there.
Since my bank has branches only in larger cities, I have to travel a few hours to the bank, but we also do extra city shopping for things that are not available in our small town.
My wife has a separate account in our local bank. It has come in handy when we run low on cash, as was the case this month.


26 posted on 07/02/2014 3:14:09 PM PDT by AlexW
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To: AlexW

The treasury has no problem with depositing in a foreign bank ?


27 posted on 07/02/2014 4:08:18 PM PDT by knarf (I say things that are true .. I have no proof .. but they're true.)
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To: knarf

“The treasury has no problem with depositing in a foreign bank ?”
_______________________________________________
Not at all, but it has to be a large nationwide bank.
The deposits are actually done out of the US embassy in each country. This was also true when in Slovakia. The Social Security department in the Philippine US embassy is maybe the largest one outside of the states, due to the huge number of retired expats here.


28 posted on 07/02/2014 4:25:26 PM PDT by AlexW
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