" tax evasion by U.S. citizens results in losses of up to $100 billion a year. The main objective of Fatca is to identify people who may be evading taxes through offshore investment vehicles.
"When I became an immigration lawyer 30 years ago, people really were excited about going to America. Now, more than half of my clients are people thinking of other alternatives rather than people seeking to immigrate to America," said Eugene Chow, the principal of Chow King & Associates.
In Hong Kong, where the individual tax rate is capped at 15%, becoming a citizen is an attractive prospect. But some U.S. citizens say they are exasperated by a growing raft of paperwork that forces U.S. citizens living abroad to declare the minutiae their financial holdings and other assets. "My decision was less about the actual amount of taxes I had to pay, and more about the system," said one investment banker, who renounced his U.S. citizenship and is now a Hong Kong citizen. "I'm not an ultrawealthy dude. It was the hassle with all the paperwork"
Jay Krause, head of the wealth planning group in Asia for law firm Withers, says his lawyers in Hong Kong and Singapore are busy processing voluntary U.S. tax returns under the IRS's offshore voluntary disclosure program, which is also designed to weed out tax evaders and people who haven't filed their taxes in years. Many of his clients are citizens or green-card holders who haven't lived in the U.S. for years but kept the green card or passport for travel purposes. "They stuck it away in a drawer and didn't think about it," he said.
The U.S. Government Accounting Office said found that 10,439 offshore voluntary disclosures were filed and closed, with the median taxpayer reporting $568,735 in offshore accounts and owing $95,982 in taxes, interest and penalties.
Since the 2009 program, the IRS launched similar measures for voluntary filings in 2011 and 2012, which are still in place. Mr. Krause said the highest tax bill he has seen was "in exc
It's great to see this is still on page 1 of this board, as it represents one of the greatest elements of damage that President Obama is inflicting on the country.
Just last week, it was reported that Google had diverted almost $9 billion of revenues to Bermuda to escape Obama's punative business taxes...
... that's $9 billion that will benefit Bermuda and it's Economy, and NOT America and It's Economy.
Investment Capital always goes where it's treated best, and very few countries are treating it worse right now than the U.S. is.