File this one under weird FATCA news. Cayman 27 has just issued this in-depth report:
Minister for Financial Services Hon. Wayne Panton says FATCA may give an unexpected boost to tourism. When initialing the exchange agreement government negotiated a tax write off for those who hold conferences at hotels and business places in the Cayman Islands.
He says this added incentive may help draw people to these shores. “Historically, there has been a big question mark whether that is possible, whether it’s an appropriate deduction. We have had confirmation that this will be a benefit that results from this – so we are happy about that,” said Minister Panton.
So, maybe it’s time for other territories and countries to get creative about their FATCA negotiations. Here are a few ideas:
– Canada offers a tax write-off for every American cop operating within its borders as long as he drops $20 or more at a Tim Hortons within a 24-hour period.
– Yemen and Pakistan both offer tax write-offs for the reconstruction of civilian dwellings as long as the claim is accompanied by a certifiable American drone fragment (a similar deal with Syria is still pending).
– The United Kingdom offers a tax write-off for any proctologist who can successfully extract Prime Minister David Cameron’s head from…well…you know…
I don’t understand how the US would agree to something that could potentially draw business from the US. Must be a lot of US offshore investment in hotels in the Caymans. But in the spirit of your suggestion, how about psychiatric treatment for US persons living abroad (a booming business)? Or as Roy Berg is advocating for with the CRA, a tax deduction for accounting services in relationship to filing US taxes from abroad?
“I don’t understand how the US would agree to something that could potentially draw business from the US. Must be a lot of US offshore investment in hotels in the Caymans.”
Well, as a matter of fact, one compelling clue might be found in the accompanying video clip which shows off the Ritz-Carlton Grand Cayman resort hotel. World headquarters for the Ritz-Carlton chain, a subsidiary of Marriot International, is located in…drum roll, please…Atlanta, Georgia. For further information, please contact Executive Chairman Bill Marriot. The Marriot family is, of course, good friends with another big fan of the Cayman Islands, Mitt Romney.
Perhaps today’s topic should be: Is FATCA actually enabling America’s 1% to better protect and grow their offshore investments while vaporizing minnows as a calculated smokescreen? Bonus question: Does anyone still seriously believe that FATCA is not the bastard child of both Democrats AND Republicans? Discuss.
Makes more sense for a Hyatt Hotel Grand Cayman (Commerce secretary),
You do not reward your opponents,
Left this comment at Cayman 27 but it looks like they removed it:
There was, however, an earlier FATCA article (which they spelled FACTA) with a few good comments:
“Perhaps today’s topic should be: Is FATCA actually enabling America’s 1% to better protect and grow their offshore investments while vaporizing minnows as a calculated smokescreen?”
Hammer hits head of nail! This is what I’ve thought for a long time. I suspected it after studying FATCA about three months in. First of all I never thought the U.S. either POTUS OR Congress would pass something harmful to their major contributors and handlers. There is no way on earth they are going to do this and it would be allowed to go forward. Secondly, I was very suspicious since every other piece of legislation with a charming sounding name like “Hire” and “Affordable Care” among others when you look closely at what it is and who benefits you always come out with the conclusion you are being sold a bill of “goods” in very effective manner that only benefits the usual players.
Before ACA was passed, months before it was even voted on at all there were meetings with major pharma players and the insurance industry who got to set rules favourable to them. VERY favourable to them to a degree that is in actuality fairly disgusting. Meanwhile the W.H. touts this whole thing as a “step forward” and something benevolent and wonderful. I already knew a lot about what had gone on with that so FATCA’s horrible effects sadly didn’t surprise me that much.
FATCA is not about bringing in huge amounts of money from top players in the off shoring game such as drug lords. It’s about criminalizing every day expats as a way to raise penalty funds for the most part. Why? Who can figure that out? All I know is they are broke, Carl Levin and others seem to despise the lives of expats and the POTUS could care less he just wants something he can “sell” for his “legacy” as an accomplishment. The bottom line is though, they aren’t going to offend those who control the funds that run the parties and the government. FATCA CAN’T harm them too much so what’s the point if not to drum up the funds they seek from a penalty fund raiser on minnows?
Banks who committed fraud in the billions of dollars are not held accountable but, if you had an unreported local checking account in Germany or Canada you are obligated to pay huge penalties. That alone should tell us what FATCA will be about. They don’t want to reclaim us as people, they want to penalize us since we have a lot less power than others. The complete injustice of bailing out those who committed crimes in the U.S. banking industry while then going after “foreign” banks so they can help people be “accountable” are the actions of a government behaving like a sociopath.
hmmm. Ritz Carlton.
This symposium was at the Ritz Carlton, and done with “support” from Treasury.
Yes, Democrats and Republicans; Both cheeks of the same miserable ass.
Pingback: Caymans win a free tax loophole in exchange for their FATCA signature | The Freedom Watch