This just out in the Tribune of Geneva newspaper about pressure EU countries are putting upon Swiss bank secrecy. Swiss People’s Party (Central Democratic Union) deputy Yves Nidegger, like the majority of his party, is opposed to all cooperation in taxation matters: Continue reading
Author Archives: Jefferson D. Tomas
IGA About to be Signed with Switzerland. Parliament and Swiss Sovereign People’s Approval Still Needed
Official Swiss Federal Press Release (English Version)
RTS article (in French): Un accord fiscal a été conclu entre la Suisse et les Etats-Unis
Translation of RTS article:
A Tax Agreement has been concluded between Switzerland and the United States.
An agreement has been concluded between Switzerland and the United States on the application of American tax law. The agreement would permit the taxation of the accounts of Americans abroad, but under certain conditions.
The United States and Switzerland have signed Monday an accord about the application of the American tax law known as FATCA. The President of the Confederation Eveline Widmer-Schlumpf announced so Tuesday before the Swiss Senate.
ACA Article About Threats to Overseas Voting in Arizona, Arizona v. Gonzalez goes to Supreme Court.
This just out from the ACA in their email newsletter. It seems that Arizona is rejecting some Federal Post Card Applications where information required by the state cannot be provided.
Another Victim of FATCA, retired Swiss/American woman living in (ex-Soviet) Georgia
A Swiss-American woman who has had an account at the Banque Cantonale Vaudoise (BCV) for decades is being forced to close the account before end of December. Aged 65, she receives her Swiss social security and disability payments in the account, and uses the account to pay her Swiss health insurance premiums.
Article (in French): http://www.lematin.ch/suisse/bcv-supprime/story/16464128
The article says that she is being forced to close because she does not live in Switzerland. But how can she draw her pension to which she has the right?!
Townsend Article about burden of proof in FBAR cases
I just became aware of this: McBride #1 – Court Holds Government Must Prove FBAR Willful Penalty by a Preponderance (11/11/12). I thought it might be interesting for all of you.
What I found most interesting was Townsend’s commentary:
Based on the detailed findings of fact, the Court first determined that the Government need prove willfulness only by a preponderance of the evidence rather than by clear and convincing evidence. Since the Court’s recitation of facts was so damning, it is not clear that the Court would have reached a different conclusion even if the burden were clear and convincing. Nevertheless, here is what the Court said about its holding on the preponderance of the evidence burden…
HOUSE Election Results vs. Roster of Americans Abroad Caucus Members
I cross-checked the list of Americans Abroad Caucus Members (http://americansabroad.org/issues/representation/americans-abroad-caucus/members/) against the ongoing results between 2 and 3 AM EST and came up with the following:
I had to check them manually by state using http://www.washingtonpost.com/wp-srv/special/politics/election-map-2012/house/ as of about 2AM EST. I suspect that the results may continue to change for some races. I am considering the results final if there is more than 70% for a candidate and at least 90% of precincts reporting, and also final if 98% or more of precincts have reported. (UPDATED 0400 AM EST with info from Shadow Raider and http://www.votecnmi.gov.mp/2012-election-results-mp.php, http://www.vivote.gov/generalresults/2012/default.h)
Please let me know right away if I you find that made any mistakes here and I will correct.
Carolyn B. Maloney (D-NY), Co-Chair http://maloney.house.gov
WON (80.8%) 92.8% of precincts reporting
Tribune de Genève: Americans in Switzerland Tend to Support Barack Obama
This hot off the press just 15 minutes ago: http://www.tdg.ch/monde/americains-suisse-roulent-barack-obama/story/20074317 The article makes no mention of the plight of US Persons abroad as to double taxation and draconian and privacy-invasive reporting and penalty policies–issues that are very important to many USPs in Switzerland in light of this election. The article only seems to suggest that Swiss bank secrecy will become a minor issue if Romney is elected!
The president of Republicans Abroad seems to suggest that the majority of Americans in Geneva are working for international organizations and consequently vote Democrat, while suggesting that Republicans tend to be in the private sector. My speculation is that many Americans in Geneva have expat packages (so-called “assignees” to local offices of large US corporations) or are otherwise insulated from the effects of double taxation (UN tax-free status, which as far as I know requires declaring only US income to the US– the UN pays tax to the US for the US Person UN officer).
Translation from the French:
Americans in Switzerland roll rather for [tend to support] Barack Obama
Democrats and Republicans are conducting their campaign in Switzerland in anticipation of the American presidential election. Though it is impossible to know exact figures about who Americans vote for, the trend may be towards the democrats.
Interesting Mopsick Article: 5% Penalty and foreign real estate not attached if less than $10,000 in US-source income?
http://mopsicktaxlaw.blogspot.ch/2012/10/tax-justice-for-americans-abroad-some.html
You may qualify if you have less than $10,000 in U.S. Source income: Although it was not clear in my article, the Adams family was in trouble with the IRS simply because they had more than $10,000 in dividends from a U.S. based mutual fund. If that single fact were different and they could show the IRS that they never got more than $10,000 from a U.S. source, they could qualify under FAQ 52 category number 3, [2] provided they have been fully compliant with all the requirements of the Canada Revenue Agency during the years in issue.What makes this provision particularly appealing is the statement in the rule which says,For these taxpayers only, the offshore penalty will not apply to non-financial assets, such as real property, business interests, or artworks, purchased with funds for which the taxpayer can establish that all applicable taxes have been paid, either in the U.S. or in the country of residence.This means that for the Adams family in my article, they can sign up for the IRS’s OVDI program and file the requisite number of back tax returns and delinquent FBAR’s, and exclude from the 5% penalty base, any valuation of his manufacturing company in British Columbia, his business bank accounts, his vacation home on Vancouver Island which he rents out, and Grandma’s trust provided it does not earn more than $10,000 from U.S. sources in any given year.Even more appealing is despite the accounting fees and legal fees the family will need to pay to prove all this to the IRS, the foreign earned income credit and the foreign tax credit is likely to wipe out most or all of any U.S. taxes which might become due from their delinquently filed U.S. forms 1040***.
***Yeah right, probably in Canada, but not in some countries like Switzerland where the taxation structure is very different.
SwissRespect Obtains Letter from Federal Concil Authorizing Disclosure of Bank Employee Names
It seems that the letter only mentions exception to Art 271, Swiss Penal Code when it is in the best interests of the country, and does not excuse the banks from bank secrecy violations or civil lawsuits under the employment code.
EUROzone Crisis
Some countries are threatening to leave the Euro because of austerity measures that their people won’t accept. Others want Germany to prop the Euro up or leave the zone.
What do all of you make of this mess?
