Cyprus haircuts, German dictated austerity measures in the E.U. and the Obama administration war on non-U.S. financial centers & institutions. All are acts of desperation committed by an inept class of professional politicians whom have mismanaged their respective country’s wealth for decades. And they do not understand even basic economics and international finance. All they know is HNW & UHNW individuals have money and they want it; now.
The E.U. solution to economic recovery appears to be committing robbery by looting the accounts of HNW bank clients (Cyprus being the first); the KISS school of economics. I only hope Lufthansa doesn’t go bankrupt when I am on one of their flights; probably have to surrender my cash and credit cards in order to deplane. By contrast the U.S. approach to wealth confiscation is far more complex; like its tax code.
President Obama has been consistently blocked in his attempts to overtax HNW individuals by the Republicans. Obama knows that he will never be able to significantly increase the taxes on the HNW. But he can go after their undeclared offshore money and the Republicans cannot object to the President zealously enforcing the law. Especially when the pursuit of purportedly wealthy tax cheats is popular with the majority of poor and middle class Americans. The only problem is the HNW he thinks are hiding money offshore aren’t; at least not in any significant numbers.
The terms “tax evasion”, “tax evader” and “tax haven” are subjective. One country’s tax evader is another country’s investor; therefore an investor in the global economy. The notion that there exist vast amounts of cash that never make it into the global tax systems is a misconception of short sighted people and the myth spun by inept politicians since the beginning of the financial crisis.
Private Bankers, in countries such as Switzerland and Luxemburg, are not Rolex wearing security guards who sit on top trunks full of cash hidden in a vault deep within the bank’s sub-basement. They are investment and assets managing professionals; tax evasion & avoidance money is invested like all other assets. Albeit taxes are not paid directly to the tax evaders’ country; but their investments generate millions of jobs worldwide and governments collect the taxes indirectly from their citizens employed as a result of these investments. The jobs generated directly are in banks, brokerages insurance companies and other financial sector employment. While indirectly creating employment in businesses such as, restaurants, markets, dry cleaners, truck drivers and all other forms of employment.
I am not here defending tax evasion, merely pointing out that all countries are, in some form, a tax haven for citizens of another country. And the pursuit of offshore tax evaders is not the answer to the world’s economic problems; the money is already in the system.
THE UNITED STATES – AN OFFSHORE TAX HAVEN:
What the overwhelming majority of Americans (especially Obama, Congress and journalist) cannot come to grip with is that the U.S. is the world’s largest tax haven and launderer of drug money(Global Research). Not the BVI, Caymans, Switzerland, Monaco, Panama, Costa Rica, Luxemburg, Lichtenstein or any other Obama identified tax haven the U.S. wants to persecute. The State of Delaware “S” corporation is favored by European and Asian nationals (criminal and non-criminal) for use to trade and invest in the U.S. and other jurisdictions (New York Times).
Delaware corporations can be easily formed and are the most secretive entities in the world in regards to identifying the UBO. As a bonus the IRS does not require U.S. banks to report profits from interest paid to foreign nationals accounts or to report the payments to the UBO’s country of citizenship. Even though the IRS & Banks are fully aware the investors are breaking the civil and/or criminal laws of their home country.
In regarding to this new regulations Andrei Papanicoglu, from Evedex LLC says: "Unless you are US citizen, have resident permit in the USA (Green Card) or operate in the USA and with US companies, you don’t pay taxes in the USA, except annual expenses of the company. Your LLC has to pay annual expenses of $550, which consist of: $250 registered agent address in USA, $250 Franchise tax (due every June 1st), and $50 fee for submission of franchise tax form).
The new regulations published in the Federal Register in 2011, effectively require any and all U.S. entities to file the FBAR – Foreign Bank Annual Report if they have a foreign financial account with a $10,000 balance on any day during the year (only the highest balance on the company’s bank account and not the company’s turnover/profit). It expressly includes all U.S. LLCs – Single member LLCs and multi member LLCs – even if they may be considered “Disregarded Entities” regarding tax matters. Please note that this obligation does not change tax status of your LLC company in any way. LLC must file and receive EIN number (Employers Identification Number) before filing the FBAR.
We suggest that you apply for EIN number when forming a company. The number will not change your tax status but will facilitate all future procedures such as FBAR report. The cost of obtaining EIN number is $200/one-off fee.
We will be happy to assist you in filing both forms (EIN and FBAR) and to get everything in on time. The FBAR needs to be filed by June 30th each year when reporting a balance for previous year. We are committed to our price of $450 for assistance in filing both EIN and FBAR forms with information you provide. You are also welcome to file FBAR at your own time and expense.
Restrictions If you decide to sell to the companies in USA, the status of your company changes. The company becomes a resident one, the procedure of tax reporting is changed and the yearly expences are greater. In this case we often offer our clients to register a company in another jurisdiction that has good references when trading with the USA, such as Hong Kong.
The listed business activities are prohibited for the LLC companies: a.) banking b.) university c.) lottery and d.) insurance If you decide to sell to the companies in USA, you have to register tax number (EIN), and status of your company is changed. The company does not become a resident one, however the procedure of tax reporting is changed and the yearly expences are greater" concludes Andrei Papanicoglu