fatca us offshore tax evaders beware
Last Updated : GMT 20:25:07
Arab Today, arab today
Arab Today, arab today

FATCA: US offshore tax evaders beware

Arab Today, arab today

Arab Today, arab today FATCA: US offshore tax evaders beware

US tax evaders will find it harder to hide money abroad
Washington - AFP

US tax evaders will find it harder to hide money abroad from Tuesday, when a law comes into effect requiring foreign banks to report their offshore accounts.
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.
The US Treasury has spent much of the past several years pressing the issue on some of the world's most powerful and secret banking centers with threats of punitive action if they do not join in.
That means Americans will have far fewer options to stash their cash offshore away from the eyes and hands of the US tax agency, the Internal Revenue Service.
And the effort to track down tax evaders has already pushed thousands of US expatriates to give up their citizenship in order to escape the IRS's claims.
But it is also having a big impact on the business of offshore banking centers, which have long marketed account secrecy to depositors from around the world.
"It is the earthquake that has collapsed the dam," said Pascal Saint-Amans, who heads the unit fighting tax havens at the Organisation for Economic Cooperation and Development.
The US has already carried out long campaigns against banks like UBS and Credit Suisse for helping Americans hide money, and both have been hit with large fines.
But they and other Swiss banks, and thousands of others around the world, have now agreed to file reports on accounts exceeding $50,000 held by US citizens to US authorities.
It a bank does not comply with the US rules, the United States has threatened to withhold 30 percent of certain payments made from the United States.
"This is a nuclear weapon," said Saint-Amans.
- 'Strong global support' -
Some 70 countries have signed treaties or agreed to cooperate with the US on FATCA.
"The strong international support for FATCA is clear, and this success will help us in our goal of stopping tax evasion and narrowing the tax gap," said Robert Stack, the US Treasury's deputy assistant secretary for international tax affairs.
The US launched in earnest the campaign to tax income put offshore by US citizens and residents in 2009, a time when government budget deficits were soaring and income falling due to the economic crisis.
Since then, Washington has pulled onto its side the developed countries of the G20 group, many of them also concerned about tax evasion.
Unsurprisingly, Washington has endured hostility from the banking industry, which says that, besides the impact on business, the reporting rules create a huge and costly burden on their operations.
"The law is incredibly complicated and we wonder sometimes whether the compliance benefit is worth the cost," said Payson Peabody of the Society of Insurance Financial Management.
"We're particular concerned about the shifting of governmental burden to the financial industry."
Swiss banks estimate they have to spend at least 250 million euros ($340 million) to adjust their systems and begin complying with the US rules.
"It's going to be much more difficult to use the traditional schemes that have been used for tax evasion," said Heather Lowe of Global Financial Integrity.
"But there's no doubt that people will find new ways to get around the new law. People will look for countries and banks that don't have agreements with the US."

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fatca us offshore tax evaders beware fatca us offshore tax evaders beware

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fatca us offshore tax evaders beware fatca us offshore tax evaders beware

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Presenter Sherine Ramahi proud of her career

GMT 06:46 2017 Sunday ,19 November

Presenter Sherine Ramahi proud of her career
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday