Americans Giving Up Passports Jump Sixfold as Tougher Rules Loom

[Karee 4,191]

Americans renouncing U.S. citizenship surged sixfold in the second quarter from a year earlier as the government prepares to introduce tougher asset-disclosure rules.

Expatriates giving up their nationality at U.S. embassies climbed to 1,131 in the three months through June from 189 in the year-earlier period, according to Federal Register figures published today. That brought the first-half total to 1,810 compared with 235 for the whole of 2008.

The U.S., the only nation in the Organization for Economic Cooperation and Development that taxes citizens wherever they reside, is searching for tax cheats in offshore centers, including Switzerland, as the government tries to curb the budget deficit. Shunned by Swiss and German banks and facing tougher asset-disclosure rules under the Foreign Account Tax Compliance Act, more of the estimated 6 million Americans living overseas are weighing the cost of holding a U.S. passport.

"With the looming deadline for Fatca, more and more U.S. citizens are becoming aware that they have U.S. tax reporting obligations," said Matthew Ledvina, a U.S. tax lawyer at Anaford AG in Zurich. "Once aware, they decide to renounce their U.S. citizenship."

Fatca requires foreign financial institutions to report to the Internal Revenue Service information about financial accounts held by U.S. taxpayers, or held by foreign entities in which U.S. taxpayers hold a substantial ownership interest. It was estimated to generate $8.7 billion over 10 years, according to the congressional Joint Committee on Taxation.

Delaying Implementation

The 2010 Fatca law requires banks to withhold 30 percent from "certain U.S.-connected payments" to some accounts of American clients who don't disclose enough information to the IRS. While banks can sign agreements to report to the IRS individually, many are precluded from doing so by privacy laws in their jurisdictions.

The Treasury Department last month announced that the IRS will delay the start of Fatca by six months until July 1, 2014, to give foreign banks time to comply with the law. The extension of the act follows a previous one-year delay announced in 2011.

Financial institutions including Canada's Toronto-Dominion Bank (TD) and Allianz SE of Germany have expressed concerns that Fatca is too complex.

The latest delay comes after the Swiss government agreed in February to simplifications that will help the country's banks implement Fatca.

Penalty Threat

"The United States wishes to ensure that all income earned worldwide by U.S. taxpayers on accounts held abroad can be taxed by the United States," the Swiss government said on April 10.

Since 2011, Americans, who disclose their non-U.S. bank accounts to the IRS, must file the more expansive 8938 form that asks for all foreign financial assets, including insurance contracts, loans and shareholdings in non-UNN.S. companies.

Failure to file the 8938 form can result in a fine of as much as $50,000. Clients can also be penalized half the amount in an undeclared foreign bank account under the Banks Secrecy Act of 1970.

The implementation of Fatca from July next year comes after UBS, Switzerland's largest bank, paid a $780 million penalty in 2009 and handed over data on about 4,700 accounts to settle a tax-evasion dispute with the U.S. Whistle-blower Bradley Birkenfeld was sentenced to 40 months in a U.S. prison in 2009 after informing the government and Senate about his American clients at the Geneva branch of Zurich-based UBS AG.

Compliance Costs

The additional compliance costs for companies to ensure that Americans they hire are filing the correct U.S. tax returns and asset-declaration forms are at least $5,000 per person, said Ledvina.

For individuals, the costs are also rising. Getting a mortgage or acquiring life insurance is becoming almost impossible for American citizens living overseas, Ledvina said.

"With increased U.S. tax reporting, U.S. accounting costs alone are around $2,000 per year for a U.S. citizen residing abroad," the tax lawyer said. "Adding factors, such as difficulty in finding a bank to accept a U.S. citizen as a client, it is difficult to justify keeping the U.S. citizenship for those who reside permanently abroad."

Source:

http://finance.yahoo.com/news/americans-giving-passports-jump-sixfold-105958873.html

[Jacque67 7,328]

Yeah, many friends are giving up their American passports and are moving to Monaco or Switzerland where there are less guns and more freedom, as well as tax benefits, great food good looking women Etc.

[himher 634]

Switzerland where there are less guns nominated as "stupid post of the day"

ON the issue of giving up citizenship it's all good. There seems to be a never ending supply of panting K1 applicants eagerly spreading themselves out for the chance to take their place.

[Peikko 1,575]

Switzerland where there are less guns nominated as "stupid post of the day"

ON the issue of giving up citizenship it's all good. There seems to be a never ending supply of panting K1 applicants eagerly spreading themselves out for the chance to take their place.

No, trying to pass Switzerland off as comparable to the US in terms of gun ownership is. The Swiss have to account for every round of ammunition and don't carry their rifles around with them to use in OK Coral gun battles, in fact if the US was to adopt the Swiss model I don't think there would be a significant 'anti-gun' movement in the US.

[himher 634]

No, trying to pass Switzerland off as comparable to the US in terms of gun ownership is. The Swiss have to account for every round of ammunition and don't carry their rifles around with them to use in OK Coral gun battles, in fact if the US was to adopt the Swiss model I don't think there would be a significant 'anti-gun' movement in the US.

With a 45.7% gun ownership rate in Switzerland and 43% gun ownership rate in the US the two countries are neck and neck in terms of comparison by "gun ownership rates". Next

Edited August 10, 2013 by himher

[Peikko 1,575]

With a 45.7% gun ownership rate in Switzerland and 43% gun ownership rate in the US the two countries are neck and neck in terms of comparison by "gun ownership rates". Next

That's where the comparison ends. Adopt the same rules they have to comply to and the 'anti-gun' movement in the US would cease to exist.

[himher 634]

That's where the comparison ends. Adopt the same rules they have to comply to and the 'anti-gun' movement in the US would cease to exist.

Gun law / comparisons to gun laws weren't actually brought up and have nothing to do with "more" or "fewer" guns but thank you for the added irrelevance.

Edited August 10, 2013 by himher

[Peikko 1,575]

Gun law / comparisons to gun laws weren't actually brought up and have nothing to do with "more" or "fewer" guns but thank you for the added irrelevance.

So, you don't want the US to adopt the same rules? You think perhaps there might be differences that result in Switzerland being a gun owners Utopia because they have to follow some very strict and sensible rules? I know I do.

[Gary and Alla 3,694]

No, trying to pass Switzerland off as comparable to the US in terms of gun ownership is. The Swiss have to account for every round of ammunition and don't carry their rifles around with them to use in OK Coral gun battles, in fact if the US was to adopt the Swiss model I don't think there would be a significant 'anti-gun' movement in the US.

The Swiss only have to account for the ammunition ISSUED to them by the government. The ammunition they buy themselves does not have to be accounted for. Swiss citizens issued a machine guns and ammunition by the government have to account for the government owned ammunition only.

Best to get your information by actually reading the law.

[Peikko 1,575]

The Swiss only have to account for the ammunition ISSUED to them by the government. The ammunition they buy themselves does not have to be accounted for. Swiss citizens issued a machine guns and ammunition by the government have to account for the government owned ammunition only.

Best to get your information by actually reading the law.

Clearly you haven't. Where exactly do the Swiss buy their ammunition? In corner shops? Keep digging Gary, you can get there. If you are in favor of adopting the Swiss model, please, let the NRA know you have adopted a different position. I'm all for it by the way

[Gary and Alla 3,694]

For those that cannot comment on the topic and can give only inaccurate information (except about there being better looking women in foreign countries...who knew?) on diverse other topics...

This was an attempt to return US dollars held offshore to the US by decreasing the offshore places that it could be hidden. Like ALL tax proposals attempted to be imposed on wealthy people who have choices, it does not work. We will lose not only the offshore holdings but the onshore taxes these people WERE paying. Increases in revenue will be nil. Other countries will be gettin gour wealthy people. Good plan. Worked well for Detroit. I bet a Democrat thought of it.

If they want to make money off these people and keep the $$$ here for reinvestment in the USA then they should implement the FAIR TAX and watch all the money come right back to the USA.

As for the women, we have the K-1 and can bring the women here.

If you want to live where there are less guns...then by all means, feel free to GTFO!!!

[himher 634]

So, you don't want the US to adopt the same rules? You think perhaps there might be differences that result in Switzerland being a gun owners Utopia because they have to follow some very strict and sensible rules? I know I do.

Didn't actually use the word utopia so you're putting words in my mouth I'm thinking. In fact my comment was limited to simply noting that the "fewer guns" post was (very) inaccurate.

[Gary and Alla 3,694]

http://map.search.ch/?misc=waffen

Purple dots are weapons and munitions stores in Switzerland They have more than Vermont.

Clearly you haven't. Where exactly do the Swiss buy their ammunition? In corner shops? Keep digging Gary, you can get there. If you are in favor of adopting the Swiss model, please, let the NRA know you have adopted a different position. I'm all for it by the way

Gun politics in Switzerland are unique in Europe. Switzerland does not have a standing army, instead opting for a people's militia for its national defense. The vast majority of men between the ages of 20 and 30 are conscripted into the militia and undergo military training, including weapons training. The personal weapons of the militia are kept at home as part of the military obligations; Switzerland thus has one of the highest militia gun ownership rates in the world.^[1] In recent times a minority of political opposition has expressed a desire for tighter gun regulations.^[2] A referendum in February 2011 rejected stricter gun control.^[3]

[himher 634]

Clearly you haven't. Where exactly do the Swiss buy their ammunition? In corner shops? Keep digging Gary, you can get there. If you are in favor of adopting the Swiss model, please, let the NRA know you have adopted a different position. I'm all for it by the way

Maybe you should change your S/N to "the opinion" from "The Truth"

The authorities made one concession, though: since 2008, all military — but not private — ammunition must be stored in central arsenals rather than in soldiers’ homes. The debate culminated in a nationwide referendum last year, when 56% of voters rejected the proposal initiated by anti-gun organizations to ban army rifles from homes altogether

The Swiss Shooting Sports Association runs about 3,000 clubs and has 150,000 members, including a youth section. Many members keep their guns and ammunition at home, while others choose to leave them at the club. And yet, despite such easy access to pistols and rifles, “no members have ever used their guns for criminal purposes,” says Max Flueckiger, the association’s spokesperson.

However, "Swiss military ammo must be registered if bought at a private store, but need not be registered if bought at a range. The nation's 3,000 shooting ranges sell the overwhelming majority of ammunition.

15,940 sq miles with 3000 shooting ranges hardly qualifies as a country with ammo control or ammo shortages. Next.

Edited August 10, 2013 by himher

[Gary and Alla 3,694]

Clearly you haven't. Where exactly do the Swiss buy their ammunition? In corner shops? Keep digging Gary, you can get there. If you are in favor of adopting the Swiss model, please, let the NRA know you have adopted a different position. I'm all for it by the way

The Swiss army has long been a militia trained and structured to rapidly respond against foreign aggression. Swiss males grow up expecting to undergo basic military training, usually at age 20 in the Rekrutenschule (recruit school), the basic-training camp, after which Swiss men remain part of the "militia" in reserve capacity until age 30 (age 34 for officers).

Each soldier is required to keep his army-issued personal weapon (the 5.56x45mm Sig 550 rifle for enlisted personnel and/or the 9mm SIG-Sauer P226semi-automatic pistol for officers, military police, medical and postal personnel) at home or (as of 2010) in the local armoury (Zeughaus). Up until October 2007, ammunition (50 rounds 5.56 mm / 48 rounds 9mm) was issued as well, which was sealed and inspected regularly to ensure that no unauthorized use had taken place.^[4] The ammunition was intended for use while travelling to the army barracks in case of invasion.

In October 2007, the Swiss Federal Council decided that the distribution of ammunition to soldiers shall stop and that all previously issued ammo shall be returned. By March 2011, more than 99% of the ammo has been received. Only special rapid deployment units and the military police still store ammunition at home today.^[5]

When their period of service has ended, militiamen have the choice of keeping their personal weapon and other selected items of their equipment.^{[citation needed]} Keeping the weapon after end of service requires a license.

The government sponsors training with rifles and shooting in competitions for interested adolescents, both male and female.

A "shooting society " somewhere in Switzerland; people come to such ranges to complete mandatory training with service arms, or to shoot for sport and competition.

A "shooting society" somewhere in Switzerland; people come to such ranges to complete mandatory training with service arms, or to shoot for sport and competition.

The sale of ammunition – including Gw Pat.90 rounds for army-issue assault rifles – is subsidized by the Swiss government and made available at the many shooting ranges patronized by both private citizens and members of the militia. There is a regulatory requirement that ammunition sold at ranges must be used there.

The Swiss Army maintains tight adherence to high standards of lawful military conduct. In 2005, for example, when the Swiss prosecuted recruits who had reenacted the torture scenes of Abu Ghraib, one of the charges was improper use of service weapons.^[6]