With the sharp eyes of the IRS abroad and looming FATCA compliance, foreign bank accounts are less secret than they used to be. Income from abroad is taxable and you must report your foreign bank accounts.
Foreign Account Tax Compliance Act FATCA. Disclaimer : this page is not intended for any specific nationality or jurisdiction. It is also not intended to solicit clients from any specific jurisdiction including the Republic of Mauritius inter alia.
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Investors Europe is a Mauritius execution-only stock broker providing institutions, professionals and individuals online trading acess to global stock markets via the privacy of nominee trading accounts. The Investors Europe Group of companies was founded in the EU in 2001, in the Jurisdiction of Gibraltar, and expanded the scope of its activities to Mauritius in January 2013 when it was Licensed by the Mauritius Financial Services Commission.
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Moving money out of the usual offshore secrecy havens and into the U.S. is a brisk new business.
"Last September, at a law firm overlooking San Francisco Bay, Andrew Penney, a managing director at Rothschild & Co., gave a talk on how the world’s wealthy elite can avoid paying taxes.
His message was clear: You can help your clients move their fortunes to the United States, free of taxes and hidden from their governments.
Some are calling it the new Switzerland..."
Something odd happened at the Guardian on Monday as the paper’s editorial staff were basking in the glow of their…
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La dernière édition de la revue Bloomberg Businessweek présente en page de couverture Reno, capitale du Nevada, comme étant un des plus grands «tax havens» (paradis fiscaux) du monde. La revue explique aussi l…
L’OCDE ne le dira pas mais son but inavoué est de tuer des petits pays à faible fiscalité comme le nôtre. Les occidentaux veulent que leur opérateurs commerciaux, économiques ou industriels paient leurs impôts chez eux et non pas chez nous – même si leurs activités économiques se passent en dehors de leur pays d’origine pour profiter de la fameuse «globalisation». Nous voulons attirer ces multinationales chez nous pour y fixer leur siège social, l’OCDE ne le veut pas.
Having launched and led the battle against offshore tax evasion, America is now part of the problem
And yet something odd is happening: Mr Nunes’s wish may be coming true. America seems not to feel bound by the global rules being crafted as a result of its own war on tax-dodging. It is also failing to tackle the anonymous shell companies often used to hide money. The Tax Justice Network, a lobby group, calls the United States one of the world’s top three “secrecy jurisdictions”, behind Switzerland and Hong Kong. All this adds up to “another example of how the US has elevated exceptionalism to a constitutional principle,” says Richard Hay of Stikeman Elliott, a law firm. “Europe has been outfoxed.
Les actions des banques françaises, italiennes ou allemandes ont à nouveau plongé, jeudi 11 février, emportant avec elles les principaux indices boursiers européens, qui, s’ils s’étaient repris la veille, ont ainsi terminé à leur plus bas niveau depuis l’été 2013. Avec un indice des banques européennes en chute de 28 % depuis le 1er janvier, l’inquiétude commence à gagner. Les banques sont-elles en danger ? Faut-il craindre une réédition de la crise des crédits « subprimes » en 2007 ?
February 11, 2016
Earlier this week the State Department released its latest statistics for people who have renounced their US citizenship.
2015 was another record year, with 4,279 people divorcing themselves from the US government and heading to greener pastures elsewhere.
This was the third year in a row that broke the previous year's record, showing that this is obviously a growing trend. The number one reason for which is quite simple: tax.
Many of these individuals were Americans already living overseas who are still subject to the pay taxes to the IRS on their worldwide income.
For 2015, the first $100,800 in earned income for Americans living abroad is generally tax free. However, higher income earners are still forced to pay their “fair share” of all the bombs, drones, and federal folly even though they don't live in the United States.
Most countries don't do this. If you're Canadian, or French, or even Chinese and you move abroad you're no longer subject to taxation in your home country presuming you earn your income overseas.
Americans living overseas are also subject to additional reporting requirements and IRS scrutiny due to the Foreign Account Tax Compliance Act (FATCA).
FATCA is an insane, extraordinarily narcissistic law that requires reporting both from individuals with foreign assets as well as from every financial institution on the planet.
Individuals living abroad are more likely to have foreign assets, so they're disproportionately affected by the additional compliance.
For financial institutions abroad, the cost of implementing FATCA has been estimated by various foreign governments, banks, chambers of commerce, and financial media, at anywhere between $200 billion and more than $1 trillion.
Yet despite FATCA’s trillion-dollar price tag, the Wall Street Journal reports that the US government has taken in just $13.5 billion in revenue from hidden foreign accounts that FATCA is supposed to eliminate.
Obviously the cost vastly exceeds the benefit. It’s insane. Plus FATCA has driven nearly 15,000 Americans to renounce the citizenship since President Obama signed it into law in 2010.
These former Americans are often criticized for taking such a controversial step, one that is derided as being “unpatriotic”.
This criticism makes no sense when you take a larger view of history.
The State Department estimates that there are up to 6 million Americans living abroad.
Given the average size of a Congressional district at roughly 700,000 citizens,there should theoretically be eight members of Congress representing the interests of Americans living abroad.
Yet expats have no representation. There is not a single person in Congress fighting for expats, even though they are still subject to pay tax.
More than 240 years ago, residents of the colonies had a term for this. They called it “Taxation without Representation”. This idea is as old as America itself.
And in 1776, American colonists divorced themselves from the British government. Much of this was tax motivated.
In the Declaration of Independence, Thomas Jefferson expressly writes that among the reasons for independence is “imposing taxes on us without our consent.”
Former US citizens are following in these footsteps.
This is appropriate to point out, especially this year as voters in the Land of the Free delude themselves into believing that they're going to choose their next leader.
This is total nonsense. As we discussed in this week's podcast, the US electoral system is completely anachronistic, just like the monetary system, the banking system, etc.
This idea of having delegates, super-delegates, and the electoral college probably made sense in the election of 1788, when less than 2% of the US population was able to vote.
Today it no longer makes sense. It is an illusion of Republican Democracy. In reality your vote doesn't count.
Let's be honest about the world we're living in. Particularly in politics, money counts more than anything.
If you really want to change anything, the most important ballots you can cast are with your money and with your feet.
By divorcing yourself from a government bent on indebting future generations in order to drop bombs by remote control on brown people across the world, you're taking a conscious step to reduce their resources.
Your hard work and sweat no longer support debt, war, and freedom-killing regulations.
Renunciation is one step that many former Americans have taken to affect this change.
Understandably the idea is far too radical for most people. But there are still many completely legitimate steps that anyone can take to reduce the amount that you owe and starve the beast.
It’s a far more powerful option than punching a chad in a voting booth.
It's a far more effective way to create “real change” than punching a chad in a voting booth.
Switzerland has signed joint declarations on the automatic exchange of information (AEOI), described as "FATCA on steroids", with Jersey, Guernsey, and the Isle of Man.
Described as “FATCA on steroids” by Justin Hayes, product manager at international software provider Linedata in June 2015, he said that the agreement will provide a new single global standard for the exchange of tax information and impact investors not previously affected by the US Foreign Account Tax Compliance Act (FATCA). - See more at: http://www.international-adviser.com/news/1027079/switzerland-signs-tax-agreements-crown-dependencies#sthash.CG0dd0uu.dpuf
The American Middle Class Is Losing Ground @investorseurope stockbrokers
After more than four decades of serving as the nation’s economic majority, the American middle class is now matched in number by those in the economic tiers above and below it. In early 2015, 120.8 million adults were in middle-income households, compared with 121.3 million in lower- and upper-income households combined, a demographic shift that could signal a tipping point, according to a new Pew Research Center analysis of government data.
The American Middle Class Is Losing Ground @investorseurope stockbrokers
These findings emerge from a new Pew Research Center analysis of data from the U.S. Census Bureau and the Federal Reserve Board of Governors. In this study, which examines the changing size, demographic composition and economic fortunes of the American middle class, “middle-income” Americans are defined as adults whose annual household income is two-thirds to double the national median, about $42,000 to $126,000 annually in 2014 dollars for a household of three.3 Under this definition, the middle class made up 50% of the U.S. adult population in 2015, down from 61% in 1971.
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Investors Europe (Mauritius) Limited has been nominated for the Benzinga Fintech Awards. We need your support! Please vote for us here and spread the word! Twitter has removed the share count from their buttons, so click Tweet anyway to help spread the word! - See more at: http://snip.ly/4DRH
FATCA HAS STOLEN YOUR FREEDOM
According to a 2012 report by the Banking Federation and the Institute of International Bankers, it will cost the top 30 foreign banks $7.5 billion a year to sift through their accounts and identify those held by Americans.
Some estimates put that figure as high as $15 billion.
Compare that to the Congressional Joint Committee on Taxation's estimate of $792 million per year in additional tax revenue.
Congress obviously couldn't be bothered to perform a simple cost/analysis benefit study before drafting this big brother mockery of a law.
Smaller institutions with fewer U.S. account holders seem to be getting hit the worst.
Australia estimates a cost of $482 million to locate roughly 77,000 accounts owned by U.S. citizens. That's $6,270 PER ACCOUNT.
Germany is projecting a similar figure of 6,300 Euros per residing U.S. citizen.
FATCA HAS STOLEN YOUR FREEDOM
The Foreign Account Tax Compliance Act (FATCA) was added as an amendment and signed into law by President Obama on March 18, 2010.
The Internal Revenue Service has upgraded the Foreign Account Tax Compliance Act Online Registration System, enabling sponsoring entities such as foreign banks to register their sponsored entities to obtain a global intermediary identification...
The Foreign Account Tax Compliance Act (FATCA) Online Registration System is a secure, web-based system that financial institutions and other entities can use to register for FATCA purposes. Launched in 2013, the system allows the IRS to identify ...
Even former IRS commissioner Steven Miller stated last year to the Securities Industry and Financial Markets Association:
“I can’t even say with conviction that I’m sure, looking strictly on a cost-benefit basis, that FATCA’s. . . benefits are going to outweigh the cost.”
FATCA constitutes theft. The US government is generating a little bit of revenue and the great expense of foreign banks and governments.
It’s not like implementing FATCA around the world is free. Banks and governments have had to incur substantial costs to comply. And those costs are ongoing.
Think about it—dozens upon dozens of nations across the world have to go through the trouble to change their banking laws and privacy regulations. In some cases they might even have needed to amend their Constitutions or hold a referendum.
Thousands of banks have had to suffer increased costs of compliance as well.
The British government alone estimated that the cost of compliance for UK businesses would be $80 to $150 million per year. Just in one country. It’s unreal.
Now imagine those same costs in France. Spain. Germany. Japan. Etc.
The costs to foreign banks and governments start to exceed the benefit to Uncle Sam very quickly.
This basically qualifies as extortion.
This information exchange is part of the IRS’s overall efforts to implement FATCA, enacted in 2010 by Congress to target non-compliance by U.S. taxpayers using foreign accounts or foreign entities. FATCA generally requires withholding agents to withhold on certain payments made to foreign financial institutions (FFIs) unless such FFIs agree to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
The United States of America is a federal republic with autonomous state and local governments. Taxes are imposed in the United States at each of these levels. These include taxes on income, payroll, property, sales, capital gains, dividends, imports, estates and gifts, as well as various fees.
The United States is one of two countries in the world that taxes its nonresident citizens on worldwide income, in the same manner and rates as residents; the other is Eritrea.