How the Wealthy Avoid paying their Fair Share (--used to)

by: jamess

Tue Apr 21, 2009 at 22:24:59 PM EDT

Experts estimate that Americans now have more than $1 trillion in assets offshore and illegally evade between $40 and $70 billion in U.S. taxes each year through the use of offshore tax schemes. U.S. corporations are estimated to illegally evade another $30 billion in taxes each year through offshore tax dodges. America's working people bear the burden of this $100 billion tax gap.

Senator Carl Levin (D-MI) - CLOSING TAX LOOPHOLES

This has been a way of life for the wealthy, for the last 8 years. Fortunately, the IRS has NEW Marching Orders, to go after these Tax Evaders ...

Those in the Know -- KNOW Where to GO,
to keep their Treasure safe from marauders, like the Tax Man

WealthBulletin's Index of
the BEST offshore financial centres:

      Total Score
SINGAPORE  45
SWITZERLAND  43
LUXEMBOURG   42
DUBAI  41
LIECHTENSTEIN  41
MONACO  41
CHANNEL ISLANDS  40
ISLE OF MAN  39
CAYMAN ISLANDS  31
PANAMA  28

METHODOLOGY: WealthBulletin assessed each offshore centre according to six criteria deemed relevant to private clients, awarding marks out of 10 for each: level of regulation; level of banking discretion; extent of deposit guarantees on off shore bank accounts; level of withholdings tax on savings; sophistication of financial infrastructure; stability of the financial sector/economy.

Camman Islands move over, there a several tiny countries, with Bigger Banks, with more to offer than you!

What's that President Obama?  The Party is Over for the Tax Evaders?

US citizens had more than $1 trillion in assets held offshore and illegally evaded between $40 billion to $70 billion in US taxes each year, according to a report in the summer of 2006 from the Senate Permanent Sub-committee on Investigations.

President Barack Obama has made the elimination of illegal offshore tax shelters and tax-evasion schemes a priority in his administration.
...

In earlier investigations, the IRS focused on US citizens holding money in offshore accounts who used credit and debit cards to access their unreported holdings, with American Express, Master Card International, Visa International and First Data have co-operated in those probes, said The Denver Free Post.

Let Hope SO!  It's time for Everyone, including the Wealthy, (and their Bank-enablers) to pay their Fair Share, to the Country that gives us ALL Freedom and Opportunity (however flawed).  Few places on Earth are better, in that regard.  Indeed, most have Tax Rates even greater than the good ole U S of A.

Click for Wide Format Image

Here are the Recommendation of that 2006 Senate Report, that has been sitting in Cold Storage, until recently:

TAX HAVEN ABUSES: THE ENABLERS, THE TOOLS AND SECRECY

PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
Committee on Homeland Security and Governmental Affairs
August 1, 2006 Hearing

Report Recommendations  [Bullet Points]
1. Presumption of Control.
2. Disclosure of U.S. Stock Holdings.
3. Offshore Entities as Affiliates.
4. 1099 Reporting.
5. Real Estate and Personal Property.
6. Hedge Fund AML Duties.
7. Stock Option-Annuity Swaps.
8. Sanctions on Uncooperative Tax Havens.

NOW for that Question on everyone's mind, everyone at least, who can afford the Accountants and Lawyers to Avoid the "Patriotic Fate" of the average Working person:

Will offshore-account holders surrender?
April 09, 2009

The US Justice Department and the Internal Revenue Service are intensifying efforts to nab more Americans concealing assets and taxable income in secret offshore bank accounts. But interviews with more than a dozen lawyers representing clients with accounts in Switzerland, Liechtenstein and other well-known tax havens indicate that many wealthy people may be reluctant to cooperate.

In a major new initiative, the IRS late last month unveiled new incentives for people to turn themselves in voluntarily over the next six months, pay what they owe and answer questions they may be asked about who helped them set up the secret accounts

Well, that same Wealth Adviser that used to steer the Elites on where to go to "Park their Millions", is NOW Offering Advice a bit more down-beat -- It seems that "Fear and Anxiety" may soon be a way of life, even for the Wealthy too!

Wealth Bulletin's Top Tax Havens
David Bain - April 20, 2009

Wealthy individuals with money off shore are questioning the wisdom of keeping it there as domestic authorities crack down on tax avoidance and overturn bank secrecy laws.
...
For those with off shore bank accounts, the big question is how to react. Tax lawyers and accountants are unequivocal.

Paul Stibbard, a partner at law firm Baker & McKenzie, says: "There is a revolution in terms of compliance for offshore centres going on. If you're not tax compliant with your off shore bank account you better move quickly to become so."

Ronnie Ludwig, a partner at private client accountancy firm Saffery Champness, says: "The world is becoming a much smaller place for tax evaders and time is running out. Anybody who has an undeclared off shore bank account should take professional advice and come clean with the tax authorities on a voluntary basis."

UK and US citizens in particular are under acute pressure to reveal details of offshore accounts to tax authorities.

Thanks President Obama, for putting the IRS on the Audit Trail of the real scoundrels, of the last 8 years! (the White Collar variety)

If Top 1% of Income Earners, don't love this Country enough to pay their Fair Share, maybe, they should pull up stakes and Leave!

It may finally be time, for the REAL American Patriots to Stand up.
And to Stand Up ... for WE the People!