Page 1 of 2 12 LastLast
Results 1 to 10 of 13

Thread: Wary Swiss Banks Shun Yanks

  1. #1
    Curmudgeon


    LowDown's Avatar
    Join Date
    Jul 2012
    Location
    Houston
    Last Seen
    Yesterday @ 05:39 PM
    Gender
    Lean
    Libertarian
    Posts
    11,570
    Blog Entries
    11

    Wary Swiss Banks Shun Yanks

    Wary Swiss Banks Shun Yanks - WSJ.com

    Among the reasons was a pending U.S. regulation aimed at tracking down tax cheats that is making life difficult for some Americans abroad. These expatriates say that foreign banks, which have expressed concern about compliance costs and potential penalties for failing to report on their American clients, are turning away their business.

    The new law, expected to be phased in over several years, requires foreign banks to identify Americans among their clients and to provide their financial information to the Internal Revenue Service. Just one person overlooked could mean a penalty equivalent to 30% of a bank's U.S. income.
    If European banks want nothing to do with Americans because of the onerous regulations that attach to them then what does it say about regulations within the US itself?

    It's hard to believe that the US has become the poster child for over-regulation in the world.

    "The urge to save humanity is almost always a false front for the urge to rule." --HL Mencken

  2. #2
    Sage


    MaggieD's Avatar
    Join Date
    Jul 2010
    Location
    Chicago Area
    Last Seen
    @
    Gender
    Lean
    Moderate
    Posts
    43,243
    Blog Entries
    43

    Re: Wary Swiss Banks Shun Yanks

    Quote Originally Posted by LowDown View Post
    If European banks want nothing to do with Americans because of the onerous regulations that attach to them then what does it say about regulations within the US itself?

    It's hard to believe that the US has become the poster child for over-regulation in the world.
    How can the US assess penalties on banks abroad?
    The devil whispered in my ear, "You cannot withstand the storm." I whispered back, "I am ​the storm."

  3. #3
    Sage
    Fisher's Avatar
    Join Date
    Sep 2012
    Last Seen
    12-06-13 @ 02:44 PM
    Gender
    Lean
    Very Liberal
    Posts
    17,002

    Re: Wary Swiss Banks Shun Yanks

    Quote Originally Posted by MaggieD View Post
    How can the US assess penalties on banks abroad?
    It could assess them against the banks' US income/assets.

  4. #4
    Curmudgeon


    LowDown's Avatar
    Join Date
    Jul 2012
    Location
    Houston
    Last Seen
    Yesterday @ 05:39 PM
    Gender
    Lean
    Libertarian
    Posts
    11,570
    Blog Entries
    11

    Re: Wary Swiss Banks Shun Yanks

    Quote Originally Posted by MaggieD View Post
    How can the US assess penalties on banks abroad?
    That would be based on treaties and other agreements between the countries.

    "The urge to save humanity is almost always a false front for the urge to rule." --HL Mencken

  5. #5
    Sage
    Lord Tammerlain's Avatar
    Join Date
    Jan 2010
    Last Seen
    Yesterday @ 11:06 PM
    Lean
    Undisclosed
    Posts
    10,432

    Re: Wary Swiss Banks Shun Yanks

    That is exactly it

    The larger Swiss banks have US operations and require the US operations to operate. The also need access to US controled/dominated clearing houses. If they want to operate in the US or have access to international banking operations they need to keep the US government happy.

    That is why the Swiss banks are either going to dump US customers or require they do more to cover up their nationality, or comply with the US requests
    Happy Hanukkah Cheerfull Kwanzaa
    Happy Christmas Merry New Year Festivus for the rest of us

  6. #6
    Phonetic Mnemonic
    radcen's Avatar
    Join Date
    Sep 2011
    Location
    Look to your right... I'm that guy.
    Last Seen
    Today @ 12:08 AM
    Lean
    Centrist
    Posts
    33,432

    Re: Wary Swiss Banks Shun Yanks

    Can't say that I blame them. The Swiss banks, I mean.
    If you claim sexual harassment to be wrong, yet you defend anyone on your side for any reason,
    then you are a hypocrite and everything you say on the matter is just babble.

  7. #7
    Discount Philosopher
    specklebang's Avatar
    Join Date
    Jan 2012
    Location
    Las Vegas
    Last Seen
    06-05-14 @ 08:26 PM
    Lean
    Other
    Posts
    11,524

    Re: Wary Swiss Banks Shun Yanks

    This is also a case where the bad guys make life difficult for the good guys. I'll analogize this to the people suffering in pain that can't get a scrip for enough Oxycontin because of the criminal sales of that drug by unscrupulous Doctors.

    Your average, middle-class American doesn't have a Swiss account. They are mostly wealthy tax cheats.

    Unfortunately, this will create a problem for overseas residents who are legitimate. How will the US enforce this? I suppose that all these banks do some business in the US.

    Quoted from the comment section on the referenced article:
    Part I - US tax cheats pay for secret Swiss accounts, Aug. 3, 2010 (Swiss.info.CH)

    The IRS has named and shamed 17 offenders on their website with sentences ranging from tough fines and prison time. The Swiss parliament recently ratified a deal to hand 4,450 UBS client names to the IRS. One watch manufacturer was put behind bars for ten months, a children’s toy dealer will spend six months under house arrest after serving three months in jail while a yacht broker received two months in prison and five months of home confinement. On top of jail sentences, the guilty must all pay up the taxes they dodged in the first place and in addition face heavy fines. The most severe financial penalty listed to date was $20.4 million (SFr21.3 million) issued to a watch dealer. Another group of seven tax dodgers are said to have hidden some $100 million in secret UBS accounts. In 2008 the US Department of Justice (DoJ) estimated that up to 20,000 US citizens had some $20 billion in assets hidden abroad. The details of such convictions reveal a highly sophisticated web of evasion, sometimes dating back to the 1970s, that could involve setting up fake companies in various countries or repatriating funds via bogus loans.

    More banks targeted
    The growing list of confessions, judgments and punishments follows the release of 285 UBS client names to the US tax authorities last year. Observers expect more convictions from that batch, with thousands of names yet to be revealed. “The IRS and the DoJ have moved quickly, as time is measured in the world of criminal tax cases, to bring as many as they have,” US tax lawyer Scott Michel told swissinfo.ch. “Criminal tax cases often take a long time, and there are clearly other cases under investigation that present more mitigating circumstances and perhaps greater complications than the ones brought so far. These will take more time.” The public naming and shaming of individuals is designed to flush more tax evaders out into the open with voluntary disclosures before they get caught and handed more severe penalties. But with the publicity surrounding the UBS case diminishing, Michel is among many observers who believe that the US authorities might soon start to move against the clients of other banks in offshore tax havens. “I suspect there will come a time when the deterrent effect obtained by yet another UBS prosecution will be quite minimal, compared with the splash the IRS and DOJ could achieve by moving after customers of other banks in non-Swiss jurisdictions. That time may in fact be fast approaching,” he said.

  8. #8
    Resident Martian ;)
    PirateMk1's Avatar
    Join Date
    Apr 2012
    Location
    California
    Last Seen
    Today @ 02:04 AM
    Gender
    Lean
    Private
    Posts
    9,927

    Re: Wary Swiss Banks Shun Yanks

    Quote Originally Posted by LowDown View Post
    If European banks want nothing to do with Americans because of the onerous regulations that attach to them then what does it say about regulations within the US itself?

    It's hard to believe that the US has become the poster child for over-regulation in the world.
    Well since the US offers dual citzenship, just get a passport from another country. Panama or Belize work well.
    Semper Fidelis, Semper Liber.
    I spit at lots of people through my computer screen. Not only does it "teach them a lesson" but it keeps the screen clean and shiny.
    Stolen fair and square from the Capt. Courtesey himself.

  9. #9
    Resident Martian ;)
    PirateMk1's Avatar
    Join Date
    Apr 2012
    Location
    California
    Last Seen
    Today @ 02:04 AM
    Gender
    Lean
    Private
    Posts
    9,927

    Re: Wary Swiss Banks Shun Yanks

    Quote Originally Posted by specklebang View Post
    This is also a case where the bad guys make life difficult for the good guys. I'll analogize this to the people suffering in pain that can't get a scrip for enough Oxycontin because of the criminal sales of that drug by unscrupulous Doctors.

    Your average, middle-class American doesn't have a Swiss account. They are mostly wealthy tax cheats.

    Unfortunately, this will create a problem for overseas residents who are legitimate. How will the US enforce this? I suppose that all these banks do some business in the US.

    Quoted from the comment section on the referenced article:

    Side note if you are going to bank overseas Panama is your best bet. They dont cowtow to the IRS, quite the opposite in fact. In most other countries your income you make overseas is NOT taxed the US is an exception. I find absurd that we do.
    Semper Fidelis, Semper Liber.
    I spit at lots of people through my computer screen. Not only does it "teach them a lesson" but it keeps the screen clean and shiny.
    Stolen fair and square from the Capt. Courtesey himself.

  10. #10
    Discount Philosopher
    specklebang's Avatar
    Join Date
    Jan 2012
    Location
    Las Vegas
    Last Seen
    06-05-14 @ 08:26 PM
    Lean
    Other
    Posts
    11,524

    Re: Wary Swiss Banks Shun Yanks

    Interesting. Thanks for the info. The US is unique in that respect of taxing global income. But what's being addressed here is income that might very well be domestic and taxable and is hidden overseas in The Caymans and Switzerland. I pay all my taxes and have little sympathy for those who don't.

    Panama also offers a fabulous deal for US retirees. Just prove you have a SS check and you can get assistance relocating there and bring everything in without import taxes.



    Quote Originally Posted by PirateMk1 View Post
    Side note if you are going to bank overseas Panama is your best bet. They dont cowtow to the IRS, quite the opposite in fact. In most other countries your income you make overseas is NOT taxed the US is an exception. I find absurd that we do.

Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •