An interesting article was posted today in Chinese: http://big5.soundofhope.org/node/320710.
Here is the Google translation:
The richest man in China to avoid heavy taxes acute rejection of U.S. citizenship
The green card has always been a symbol of the “American Dream”, but in early 2013, the United States resorted to FATCA (Foreign Account Tax Compliance Act) locking overseas income tax inspection, commonly known as “fat cats Act set off a celebrity and rich to abandon green card and U.S. citizenship The wave of the mainland’s richest man, Wahaha Group Chairman Zong recently renounced U.S. citizenship.
These high-income “tax refugee” nationality have moved back to the country, or transferred to countries with lower tax rates; renounce U.S. citizenship, however, still liquidate the property to pay the exit tax, and many of the National People’s Congress of the American dream from the “dream” change ” nightmare. “
The disposable green card predominantly Chinese
French composer in the movie “Green Card”, which, in order to live and work in the United States, at great pains sham marriages in an attempt to fool the immigration officer, only to get a green card. However, with the United States FATCA bill on the road, there are many rich must deliberately with a green card, “said Bai Bai”, which is a continent rich.
“World News” reported that, in the case of “taxing” the wealthy Americans to give up the green card or citizenship case continued to increase, which Chinese majority. IRS statistics show that, to give up the American’s more than 1,500 people annually from 2008 to 2011, according to the quarterly published abandon nationals who found, a very high proportion of Chinese surnames.
Under U.S. law, U.S. citizens and permanent resident green card holder, whether living in the world where to be for overseas income tax. In March 2010, the United States to strengthen tax collection, enacted FATCA aims to crack down on overseas tax evasion, and the rules officially launched in early 2013.
Overseas fat cats to escape detection
According to FATCA rules, as long as living in the United States, the overseas assets of more than 5 million (U.S. $, the same below), or living overseas assets of more than 20 million of the “rich”, If you do not honestly reporting overseas income will be fined 10,000 reporting is not yet in full if they are the IRS identified, fines can be appended to 50,000 yuan fine;, in serious cases will go to jail.
The best, the U.S. government also stipulates that starting from the New Year’s Day in 2013, the territory of all foreign banks must provide the IRS with deposits of more than 5 million citizens account information, or they will be regarded as “non-cooperation” with the government in order to check tax. Almost all financial institutions have branches in the United States, the “fat cat” proceeds of overseas long as financial, regardless of deposits, bonds, stocks, and even ham pension, etc., all to escape detection.
This tax pressures so many foreigners choose to give up the green card, In the past, the “American Dream” is the most ardent Chinese tycoons, such as Wahaha chairman Zong also reported one after another “to do back to the Chinese people”.
But is not easy to give up the green card must pay the exit tax; the taxpayer abandoned cadastral day shall liquidate the total global assets, deemed “the price of sale to pay income tax. So you want to say goodbye without a large loss of blood, advance must also be careful financial plan for the job with the United States.