Tuesday, March 31, 2015

No Jail Time for Former Credit Suisse Bankers who helped Americans Evade Tax


We previously posted Credit Suisse To Pay $1.8 Billion for Conspiracy Aid Taxpayer's Evade U.S. Taxes! where we discussed that on Wednesday, March 12, 2014, a former Credit Suisse Banker, Andreas Bachmann, pleaded guilty to conspiring to defraud the Internal Revenue Service (IRS) in connection with his work as a banking and investment adviser for U.S. customers.  

He and 6 other Credit Suisse bankers were indicted in 2011 on a charge that they helped U.S. clients hide $4 billion in assets from the IRS. Solely Dorig and Bachmann voluntarily came to the U.S. to enter their guilty pleas.


On Friday March 27, 2015, Dorig and Bachmann were given five years’ unsupervised probation and fines of USD100,000 and USD125,000 respectively by a US judge. Dorig and Bachmann admitted in their guilty pleas that they helped U.S. clients hide assets and income in secret Swiss bank accounts. Both men helped clients conceal accounts in the names of phony structures created in the forms of trusts, corporations or foundations.




Prosecutors say Bachmann, who worked as a banker for Credit Suisse before becoming an asset manager at a Swiss asset management firm, would travel to the U.S. twice a year to meet with U.S. clients and provide cash withdrawals from their undeclared accounts.


Dorig helped some of Bachmann's U.S. clients create and maintain structures to conceal the true ownership of their foreign undisclosed financial accounts. Dorig worked for Credit Suisse subsidiaries between 1973 and 1997, and authorities say he was active in forming those structures. Prosecutors allege that Credit Suisse and its subsidiaries continued to refer U.S. clients to Dorig even when he left the bank and created his own company.

US taxpayers who have undeclared accounts in Credit Suisse or other Swiss banks, may now want to consider applying for the US Offshore Voluntary Disclosure Program (OVDP), which sets a limit to the penalties imposed on them by the Internal Revenue Service (IRS) for failing to declare foreign assets and earnings.

 
Once either:
  • The Swiss Banks disclose an account holder's name to the IRS under the non prosecution agreement or 
  • Mr. Andreas Bachmann or Josef Dorig or Markus Walder or Susanne Ruegg-Meier or Roger Schaerer discloses an account holder's name to the IRS or
  • Any 1 of the other 11 Credit Suisse Bankers, who were indicted in 2011 along with Mr. Dorig, discloses an account holder's name to the IRS 
the OVDP election is no longer available to that account holder!!!
 
Taxpayers Who Wish To Take Advantage 
Of The OVDP Must Act Quickly! 


Have Un-Reported Income From a Swiss Bank?


Value Your Freedom?


Contact the Tax Lawyers at
Marini & Associates, P.A.
for a FREE Tax Consultation Contact US at  
www.TaxAid.us or www.TaxLaw.ms
or Toll Free at 888-8TaxAid (888 882-9243).




Sources:

Reuters
Swissinfo
Law360

Monday, March 30, 2015

Bank Leumi Turns Over the Names of 1,500 US Taxpayers.


We previously posted "Bank Leumi to Face $300 Million Settlement Option to Close an Investigation Regarding Their Aiding Americans to Evade Taxes:" now we know that Bank Leumi's non-prosecution deal with the US Department of Justice requires it to also disclose the identities of 1,500 American account holders to the Internal Revenue Service. US citizens with undisclosed accounts at the Israeli bank may now be at risk of civil penalties, prosecution and disqualification from the US' offshore voluntary disclosure program.  

On December 22, 2014, the Bank Leumi Group reached agreements with the United States Department of Justice (DoJ) and the New York Department of Financial Services (DFS), respectively, which bring to an end investigations into allegations that the Bank Leumi Group assisted certain U.S. customers with evading taxes during the years 2002 through 2010. 

Leumi reported that it is the first Israeli bank to reach a settlement with U.S. authorities. The agreement with the DoJ requires the Bank Leumi Group to pay a fine of $270 million. The agreement with the DFS requires the Bank Leumi Group to pay a fine of $130 million. As part of the DoJ agreement, the Bank Leumi Group has provided to the Internal Revenue Service (IRS) the names of more than 1,500 U.S. account holders.


U.S. persons with undisclosed accounts at Bank Leumi (and others) face potentially stiff financial consequences and, in some cases, the risk of prison. 

There are many unknowns in this new environment (e.g., which individuals are among the 1,500 disclosed accounts, who will be exposed to criminal prosecution, what the civil penalties will be in the civil examinations, will the streamlined programs be available, etc.). However, one thing is apparent: The U.S. government will likely be relentless in its pursuit of U.S. persons with undisclosed accounts, and those who defer disclosure may face ever-increasing adverse consequences. 

Have Un-Reported Income From a Bank Leumi 
Offshore Bank Account?





Protect Yourself from 325% Fines and Possible Jail Time. 



Contact Our Experienced Tax Attorneys to Find out
if the OVDP Program or Streamline Program is Right for You?





Contact the Tax Lawyers at
Marini & Associates, P.A.
for a FREE Tax Consultation Contact US at
or Toll Free at 888-8TaxAid (888 882-9243)





Source :

 
Duane Morris

FATCA May Expose American Expats in Canada to US Tax on Their Sales of Their Canadian Principal Residences!

The one million Americans living in Canada are being reminded that they should pay US capital gains tax on the sale of their principal residence if they realise a gain of more than USD250,000. In the past the US authorities would not have been aware of such transactions, but in future they might infer them from FBAR or FATCA reports.

In Canada a house can be sold tax-free as long as it’s a principal residence. Americans get a tax deduction for the home mortgage interest they pay, but they may also face a capital gains tax when selling a house at a profit. This applies in both the United States and Canada.

An estimated one million U.S. citizens live in Canada. Those affected by taxes on the sale of a home would be the long-timers who over the years have seen house price gains measured in the hundreds of thousands of dollars. Residents of the prime neighbourhoods in Vancouver and Toronto might see that kind of price appreciation in a fairly short period of time.

US tax law provides that the first $250,000 gain on the sale of a house is exempt from taxes for a U.S. citizen or $500,000 for spouses who are both U.S. citizens or where there is a Canadian spouse if the couple has elected to file joint returns in the United States. Gains above those thresholds are taxed at rates of 15 to 20 per cent, he said. A 3.8-per-cent Medicare surtax applies for higher-income people.

What is different now is that with the additional information provided by FATCA and the increased reporting and enforcement of FBAR reporting;these gains are much more likely to be discovered. Then in the past. See our post U.S. Signs FATCA Agreements with Canada and Hungaryand our post Canada Limits Model I FATCA Agreement for more information regarding the US Canadian Model I FATCA Agreement to implement the Foreign Account Tax Compliance Act in an effort to discourage offshore tax evasion.


 Have Un-Reported Canadian Income?


Contact Our Experienced Tax Attorneys to Find out
if the OVDP Program is Right for You?




Contact the Tax Lawyers at
Marini & Associates, P.A.
for a FREE Tax Consultation Contact US at
or Toll Free at 888-8TaxAid (888 882-9243)




Source:


Toronto Globe & Mail

Sovereign's US Custormers Need To Make a Voluntary Disclosure NOW!


We originally posted Court Authorizes IRS to Issue Summonses For Records of U.S. Taxpayers Who Used Sovereign Management & Legal Ltd. to Conceal Offshore Accounts, Assets or Entities  which discussed that on December 19, 2014 the DoJ announced that U.S. District Judge Vernon S. Broderick entered an order on December 18, 2014 authorizing the IRS to issue summonses requiring:
  1. Federal Express Corporation, doing business as FedEx Express, 
  2. FedEx Ground Package System Inc., aka FedEx Ground, 
  3. DHL Express (DHL), 
  4. United Parcel Service Inc. (UPS), 
  5. Western Union Financial Services Inc., 
  6. the Federal Reserve Bank of New York (the FRBNY), 
  7. Clearing House Payments Company LLC, and 
  8. HSBC Bank USA National Association (HSBC USA) 
to produce information about U.S. taxpayers who may be evading or have evaded federal taxes by using the services of Sovereign Management & Legal Ltd. (Sovereign) to establish, maintain or conceal foreign accounts, assets and entities.


The John Doe summonses will now result in the abovementioned 8 entities producing records that will assist the IRS in identifying U.S. taxpayers who, used Sovereign’s services to establish, maintain, operate or control any foreign financial account or other assets; any foreign corporation, company, trust, foundation or other legal entity; or any foreign or domestic financial account in the name of such foreign entity.

  • As a result of a DEA investigation of online narcotics trafficking, the IRS learned that Sovereign was involved in assisting U.S. clients evade their taxes. 
  • In a voluntary disclosure made by a US taxpayer of tax non-compliance, the US taxpayer reported that Sovereign helped form an anonymous corporation in Panama that the US taxpayer used to control assets without appearing to own them.
  • The subsequent IRS investigation determined that Sovereign uses Federal Express, UPS and DHL to correspond with U.S. clients, and Western Union to transmit funds to and from clients in the United States.  In addition, the IRS learned that the wire services operated by the FRBNY and Clearing House, and the U.S. correspondent bank accounts that HSBC USA holds for Sovereign’s banks in Panama and Hong Kong, are likely to have records of financial transactions between Sovereign and its clients in the United States. 



By obtaining information from these entities 
through John Doe summonses, the IRS expects 
to be able to identify Sovereign’s U.S. Clients
 who may be avoiding or evading taxes.

Now that the IRS has issued these John Doe summonses to produce records that will assist the IRS in identifying U.S. taxpayers who, from 2005 through 2013, used Sovereign’s services; these US US taxpayers will most likely:
  1. be Audited by the IRS
  2. be subject to a combined 325% Tax & Penalty on the highest balance in their Sovereign foreign bank account
  3. be Criminally Prosecuted
  4. and do Jail Time!
 Have Un-Reported Income From a Sovereign 
Offshore Bank Account?





Protect Yourself from 325% Fines and Possible Jail Time. 



Contact Our Experienced Tax Attorneys to Find out
if the OVDP Program is Right for You?





Contact the Tax Lawyers at
Marini & Associates, P.A.
for a FREE Tax Consultation Contact US at
or Toll Free at 888-8TaxAid (888 882-9243)









Tuesday, March 17, 2015

DoJ Provides a Concession to Swiss Banks


The U.S. Department of Justice (“DOJ“) and the Swiss Federal Department of Finance have entered into an agreement that essentially ends Swiss bank secrecy and the renown of Switzerland as a tax haven (the “PFSB“).

The PFSB is monumental because it:
1.      Applies not just to American taxpayers but also to foreigners and foreign entities who maintain Swiss bank accounts if they are U.S. tax obliged persons under FATCA;

2.      Requires the disclosure of essentially every penny transferred in and out of closed Swiss bank accounts over the last five years by persons and entities who are caught by the PFSB, wherever situated. As a result, U.S. law enforcement will be able to follow the flow of funds to pursue tax evasion by learning from where, and to where, funds were transferred; and

3.      Requires the disclosure of professionals affiliated with the bank accounts or who acted as intermediaries in respect of the accounts.

By virtue of its reference to the U.S. Foreign Account Tax Compliance Act, 124 Stat. 97-117 (“FATCA“), the PFSB applies not just to American natural and legal persons but also to foreigners and foreign legal persons in the same circumstances in which FATCA applies (“U.S. Tax Obliged Persons"). Due to its breadth, FATCA impacts virtually all non-U.S. entities, directly or indirectly, receiving most types of U.S. source income, including gross proceeds from the sale or disposition of U.S. property which can produce interest or dividends.
Lawyers representing 73 of the banks have sent a letter to the US DoJ complaining that the latest version of the amnesty terms, circulated on September 22, 2014, includes new demands that were not in the original agreement.

Participating banks were required to cooperate fully with any other domestic or foreign law enforcement agency in any investigation, and to 'share material with governments other than the US.

It also insists that banks must disclose information about their parent companies.
 
The banks' letter of protest says these terms go beyond what they anticipated when signing up, and urges that they are withdrawn. The requirement to cooperate with foreign governments 'turns a program specifically focused on US tax issues into a global cooperation agreement without any safeguards or guarantees of appropriate consideration of the banks' cooperation', according to the 11-page letter, which is signed by 18 law firms representing the banks.

Swiss banks in a U.S. Justice Department self-reporting program for undeclared American accounts have won a concession that indicates the process is moving forward after an earlier impasse, according to a document reviewed by The Wall Street Journal

Now a new, revised agreement does not include the previous language about granting the Justice Department the right to share data with foreign authorities, or language requiring cooperation with foreign law enforcement. In addition, the revised version sets a term of four years for the banks to fulfil obligations under the program, whereas the prior version left the term indefinite.

The new, revised model agreement has been sent to banks in the program in recent weeks, according to people familiar with the matter.

They may get a modicum of relief, but the landscape of global transparency and disclosure isn’t likely to materially change.  
Have Un-Reported Income From an Offshore Bank? 

Value Your Freedom? 

Contact the Tax Lawyers at
Marini & Associates, P.A. 

for a FREE Tax Consultation Contact US at
or Toll Free at 888-8TaxAid (888 882-9243) 
















The U.S. Department of Justice (“DOJ“) and the Swiss Federal Department of Finance have entered into an agreement that essentially ends Swiss bank secrecy and the renown of Switzerland as a tax haven (the “PFSB“).

The PFSB is monumental because it:
  1. 1.Applies not just to American taxpayers but also to foreigners and foreign entities who maintain Swiss bank accounts if they are U.S. tax obliged persons under FATCA;
  2.  
  3. 2.Requires the disclosure of essentially every penny transferred in and out of closed Swiss bank accounts over the last five years by persons and entities who are caught by the PFSB, wherever situated. As a result, U.S. law enforcement will be able to follow the flow of funds to pursue tax evasion by learning from where, and to where, funds were transferred; and
  4.  
  5. 3.Requires the disclosure of professionals affiliated with the bank accounts or who acted as intermediaries in respect of the accounts.
By virtue of its reference to the U.S. Foreign Account Tax Compliance Act, 124 Stat. 97-117 (“FATCA“), the PFSB applies not just to American natural and legal persons but also to foreigners and foreign legal persons in the same circumstances in which FATCA applies (“U.S. Tax Obliged Persons"). Due to its breadth, FATCA impacts virtually all non-U.S. entities, directly or indirectly, receiving most types of U.S. source income, including gross proceeds from the sale or disposition of U.S. property which can produce interest or dividends.
Lawyers representing 73 of the banks have sent a letter to the US DoJ complaining that the latest version of the amnesty terms, circulated on September 22, 2014, includes new demands that were not in the original agreement.
· Participating banks are now required to 'cooperate fully with any other domestic or foreign law enforcement agency in any investigation, and to 'share material with governments other than the US.
· It also insists that banks must disclose information about their parent companies.
The banks' letter of protest says these terms go beyond what they anticipated when signing up, and urges that they are withdrawn. The requirement to cooperate with foreign governments 'turns a program specifically focused on US tax issues into a global cooperation agreement without any safeguards or guarantees of appropriate consideration of the banks' cooperation', according to the 11-page letter, which is signed by 18 law firms representing the banks.


Swiss banks in a U.S. Justice Department self-reporting program for undeclared American accounts have won a concession that indicates the process is moving forward after an earlier impasse, according to a document reviewed by The Wall Street Journal.

Now a new, revised agreement does not include the previous language about granting the Justice Department the right to share data with foreign authorities, or language requiring cooperation with foreign law enforcement. In addition, the revised version sets a term of four years for the banks to fulfil obligations under the program, whereas the prior version left the term indefinite.

The new, revised model agreement has been sent to banks in the program in recent weeks, according to people familiar with the matter.

They may get a modicum of relief, but the landscape of global transparency and disclosure isn’t likely to materially change.  
Have Un-Reported Income From an Offshore Bank? 
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Value Your Freedom? 
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 Taxpayers Who Wish to Take Advantage of
the Current OVDP Must Act Quickly!   
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Contact the Tax Lawyers at
Marini & Associates, P.A. 

for a FREE Tax Consultation Contact US at
or Toll Free at 888-8TaxAid (888 882-9243)