Switzerland Commits to Automatic Tax Information ExchangeFrom JDSUPRA Business Advisor, Tax Controversy Watch, October 10, 2014: FATCA Notebook: Former IRS Chief, Taxpayer Advocate, Criticize FATCA
Stephen Miller suggests the benefits of the new information reporting regime imposed by FATCA may not outweigh its costs;
and
Nina Olson says re FATCA consequences: “I don’t think we’ll know that for years. And by that point we’ll actually be a little too late to go, “Oops, my bad, we shouldn’t have done this,’ and then try to unwind it.”
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Also in the article:
Finally, Switzerland announced on October 8 that it would move toward automatic exchange of bank account information with other countries, including the EU and the United States. (See articles here and here.) If adopted, the earliest date for automatic exchange of data would be 2018 and the new reporting regime would require Switzerland to notify an account holder’s country of origin if a Swiss bank account is opened. Switzerland also announced that it would seek to negotiate a Model 1 Intergovernmental Agreement (IGA) with the United States to implement FATCA, to replace the Swiss-U.S. Model 2 IGA that was reached in February 2013.
With another article commented on by “Worldwide” on the Media thread: Switzerland Commits to Automatic Tax Information Exchange
Has Switzerland just given up completely?
@Steve
On the contrary, it looks like the Swiss have reconsidered their position that the banks report directly to the IRS. Instead the Model 1 agreement has the mention of reciprocal exchange. I know it just words that state the IRS will try really, really hard to get the US government to agree.
What is different here is the a the Swiss are negotiating with 40 other states to agree that reciprocity is the basis of automatic exchange of tax information in tax treaties. This could give the Swiss a lot of clout when negotiating the Model 1 agreement to demand reciprocity to be required, not just lip service.
The Swiss agreement specifies the beneficial owners of trusts and other financial constructs should be identified. This would be quite an inconvenience for the South Dakota Banks and 1209 North Orange Street, Delaware, USA.
I just hope that China is persuaded to join in principal with the Swiss and the 40 other states. That would put the fear of God in the Congress and Senate.
Last week the WSJ published an article called “Five Cases of US Shell Companies Aiding Criminal Conduct”. It begins with:
“For all the talk about money laundering risks associated with overseas shell companies, the U.S. too contains havens for anonymous firms. States handle incorporation and some have loose requirements, such as Delaware, which one report called an “Onshore Offshore.” The U.S. Senate has failed at passing legislation creating a national standard for identifying beneficial owners of companies at incorporation, though the stars may align for passage. The White House said in a recent fact sheet it’s trying to take action on the issue. A recent Global Witness report, which compiled 22 cases of shell companies facilitating crime based in 27 U.S. states, said investors, the U.S. government and others can be harmed by anonymous firms. The group advocates for a public registry of beneficial owners, saying it would help business know their customers and law enforcement to conduct investigations. Here are some more cases Global Witness didn’t cite:”
http://blogs.wsj.com/briefly/2014/10/03/5-cases-of-us-shell-companies-aiding-criminal-conduct/
Obama administration’s motto: We’ll sweep in front of our own door if and when we feel like it.
Innocente, The motto is “Our front door is clean and tidy now shut up.”
So where do Olsen`s and Miller`s comments get us? No where. It changes nothing.
Power is power.
I just filled out a Democratic Party Survey on-line. It just seemed the polite thing to do – to explain why I am not voting for them this year. And then I get a mail in my in-box that says
“Will you forward this email to 3 supporters like you whose voice you think should be heard?
TAKE YOUR SURVEY: http://action.dccc.org/2014-campaign-survey
Thank you for your support!
Democratic Headquarters”
Have at ’em, folks.
(I mean geez they ASKED 🙂
Thanks, Victoria. Done!!
Gee I wonder which bank official in the world could threaten to kill or kidnap to get access to FATCA data?
How many foreign banks would throw US ex-pats under the ISIS bus to save one of their own? US ex-pats would be classified as expendable for sure.
http://www.nbcnews.com/storyline/isis-terror/americans-risk-being-kidnapped-isis-tries-raise-funds-n223646
The mainstream media, here NBC News, could even add more to their story, which refers (mainly) to Americans who are not in the “homeland”. They have yet to put two plus two together or are even aware of the FATCA additional enablement to this in the risk to Americans.
Polly,
Who knows where comments of Nina Olson and Stephen Miller will get us? Such criticism from people like this could highlight the folly of FATCA and other country decisions to let that law override their own as, now, two lawsuits move forward.
@Don, It is a direct threat to every American and Former American abroad!! A CLN is not going to protect you from the fanatics when your datafile is sold off that has a US POB.
Having a Canadian Passport that shows an unambiguous US PLace of Birth is also a hazard to ones health.
For those in Countries with national ID Cards or drivers licenses that have POB, an unambiguous place of birth is a health hazard for terrorism.
Homeland politicians do not give a damn, pure and simple.
Those wishing to harm Americans don’t have to look any further than AARO or ACA Facebook pages, Linkedin or an other online place where Americans congregate. They don’t need our financial information to find our whereabouts, but it does make for good extortion opportunity for the unscrupulous bank employee.
It wouldn’t surprise me if we heard that Nina’s resigning her position of NTA. There are few protections for people in the public sector who speak their minds, especially against the current administration – even if it IS her job.
@calgary
What I mean is that only suing in a court of law will get any real results- if anything.
Polly, I agree with that. These legal suits are so important. We’re at a real crossroads. We choose to fight or choose to succumb to all of the absurdity and injustice.
@Bubblebustin.
Nina Olson’s resignation wouldn’t surprise me either. Can you imagine how frustrating it must be for all your hard work to be ignored year after year? They can’t even be bothered to respond to her annual report even though it is legally required.
Nina Olsen advanced a Tax Payer Bill of Rights. I tried to get attention to this at IBS.
http://www.irs.gov/uac/Newsroom/IRS-Adopts-Taxpayer-Bill-of-Rights;-10-Provisions-to-be-Highlighted-on-IRSgov,-in-Publication-1
Of interest is #10 Right to a Fair and Just Tax System. This is highly subjective and is at odds of just following the law.
http://federaltaxcrimes.blogspot.com/2014/10/swiss-category-2-banks-reportedly-get.html
“Hardliners have taken over the leadership of DOJ, mentioning Tamara Ashford, Acting AAG Tax, who is awaiting confirmation to the U.S. Tax Court…..”
The message: there will be no mercy for Americans living in Switzerland.
@JDL
It is what I have always been saying. If somebody blackmails another and is successful, they will always continue and up the ante. That is what this article basically is saying. The power play worked the first time around, and now we are going to continue to demand more. And this will not only apply to Switzerland. It will apply to any country that has succumbed to american demands. In addition, things are seemingly getting worse and not better with new “hardliners” being put in charge. So we can forget Nina Olsen and Mr Miller. They dont count for anything. Power is power.