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Cayman Expat Tax: Haven's Planned Fee Could Damage Country's Economy

lpast

lpast

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Now they can hide their money and not pay their fair share to the USA but they have to pay taxs to the caymans.
They'll start hiding their money in biafra or somewhere else. Geez I feel bad for them that they have to look for a new hideout.




Cayman Islands — One among thousands of lawyers, accountants and other workers from around the globe, Paul Fordham is escaping cold weather and the taxman by working in a sunny British territory in the Caribbean. He and many others, however, worry they soon may be looking for another haven. The Cayman Islands have lost some of their allure by proposing what amounts to the territory's first ever income tax. And it would fall only on expatriate workers like Fordham who have helped build the territory into one of the most famous or, for some, notorious offshore banking centers that offer tax advantages for foreign investment operations.


Cayman Expat Tax: Haven's Planned Fee Could Damage Country's Economy
 
lpast said:
Now they can hide their money and not pay their fair share to the USA but they have to pay taxs to the caymans.
They'll start hiding their money in biafra or somewhere else. Geez I feel bad for them that they have to look for a new hideout.

Cayman Islands — One among thousands of lawyers, accountants and other workers from around the globe, Paul Fordham is escaping cold weather and the taxman by working in a sunny British territory in the Caribbean. He and many others, however, worry they soon may be looking for another haven. The Cayman Islands have lost some of their allure by proposing what amounts to the territory's first ever income tax. And it would fall only on expatriate workers like Fordham who have helped build the territory into one of the most famous or, for some, notorious offshore banking centers that offer tax advantages for foreign investment operations.


Cayman Expat Tax: Haven's Planned Fee Could Damage Country's Economy
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Many xpats have had sweet deals forever. Many private contractors working in Afghanistan pay no Federal or State income tax on their earnings, subject to limitations below. They just have to make sure they follow the expat rules.

If you have your full time residence abroad for a full calendar year (bonafide residence test) or do not return to the US more than 35 days in a consecutive 12 month period (physical present test), you can exclude up to $91,500 of earned income from U.S. Income Taxation for 2010 and lesser amounts in earlier years. If you are married, and both of you earn income and reside and work abroad, you can also exclude up to another $91,500 (for tax year 2010) of your spouses income from taxation. These exclusions can only be claimed on a filed tax return and is not automatic.
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US INCOME TAXATION OF AMERICANS AND EXPATRIATES LIVING ABROAD

It is not true that just by working abroad, one excludes all of their income. It is illegal to give up one's American citizenship in order to avoid Federal income tax.
 
In November, 2002 the Cayman Islands also signed a Tax Information Exchange Agreement with the US
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For what it's worth, this appears to negate the theory that money in the Caymans has evaded US taxes.
 
I read it and read it again.

Nothing changed.

You seem to be confusing the expatriate tax deduction with some kind of concealed wealth.

I lived in Asia for 11 years and there is a tax deduction if you live there pretty much full time. It was called the 510 day rule.

You seem to imply that wealthy US citizens can hide money in the Cayman Islands. No, you can't. If you live and work there, you get a tax break. Now, it seems you;ll be paying Caymans income tax, just as I paid Korean, Thai and Vietnamese income tax.







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lpast said:
No its not..read it again :)
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lpast said:
Now they can hide their money and not pay their fair share to the USA but they have to pay taxs to the caymans.
They'll start hiding their money in biafra or somewhere else. Geez I feel bad for them that they have to look for a new hideout.




Cayman Islands — One among thousands of lawyers, accountants and other workers from around the globe, Paul Fordham is escaping cold weather and the taxman by working in a sunny British territory in the Caribbean. He and many others, however, worry they soon may be looking for another haven. The Cayman Islands have lost some of their allure by proposing what amounts to the territory's first ever income tax. And it would fall only on expatriate workers like Fordham who have helped build the territory into one of the most famous or, for some, notorious offshore banking centers that offer tax advantages for foreign investment operations.


Cayman Expat Tax: Haven's Planned Fee Could Damage Country's Economy
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You're just jealous because you don't have enough money to open accounts in Switzerland or the Caymen Islands.
 
johnny_rebson said:
You're just jealous because you don't have enough money to open accounts in Switzerland or the Caymen Islands.
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Just so you know, it doesn't take a lot of money to open up a bank account in Switzerland or the Cayman Islands. Actually, all you have to do is walk into a bank in Switzerland to open up a Swiss bank account or if you're really lazy, just do it through the mail. And now it's time for:

original.0


How To: Set Up An Offshore Bank Account - AskMen

Locale: Switzerland

Description/legal status: Accounts can be set up in person or via mail. The key feature of a Swiss bank account is secrecy. It works like your American bank, but most legal matters like divorce, taxes and bankruptcy are considered private. In fact, the Swiss are known for keeping their secrets. While some countries change their laws under American pressure, Switzerland just keeps going. On the other hand, everyone knows about Swiss bank accounts, so if a creditor knows you’ve got one, they also know you’re hiding something.

Read more: How To: Set Up An Offshore Bank Account - AskMen
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Locale: Cayman Islands

Description/legal status: Once again, it’s basically like setting up a U.S. account. The difference is that Cayman accounts are geared to corporations, so it’s possible to open an account and keep your identity a secret. In other words, your corporate name will be the only name the bank knows. If you’re clever and really concerned about secrecy, you’ll insulate yourself with a series of corporations, making a paper trail of holding companies that don’t lead to you.

The Cayman Islands don’t officially encourage illegal activity like tax evasion, but they don’t report deposits or interest on those deposits -- that’s your job. But remember: In the war on terror and drugs, Cayman banks have buckled under American pressure. This means that when the bank opens its doors to the American government to catch a drug dealer or terrorist, it also opens the door to your information.


Read more: How To: Set Up An Offshore Bank Account - AskMen
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:2wave:
 
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If they want to screw themselves, then let them. They will be the ones that loose all that money and the prosperity that comes with it.
 
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