Annex - Aiga Forum, an Ethiopian forum for news and views promoting

More documents

Recommendations

Info

At Ex 12Expat Americans Living and Working abroad: On the IRS Radarby Asher Rubinstein, EsqThere are millions of United States citizens who live and work outside theUS. These non-resident citizens are still subject to IRS reportingrequirements, i.e., they must still file tax returns and the Report of ForeignBank and Financial Accounts (the "FBAR"), and they are subject topayment of taxes on all income, including income earned abroad. The US,virtually alone among nations, imposes an extra-territorial tax regime,meaning that US citizens, even if they live and work overseas, must paytaxes on income earned offshore. The American expat may be entitled tocredits for living abroad, and may be able to deduct taxes paid to a foreigngovernment. Living and working abroad do not mitigate one's US taxobligations.An American expat might surmise that living abroad, he or she is farremoved from the IRS. The expat may be tempted to hide foreign income,and not disclose an account in a foreign country, thinking that the the IRSwould never learn about income in a foreign country, and a local account ata non-US bank. However, that would be a serious risk. How might the IRSlearn about a foreign account, so far away and seemingly off the Americanradar?First, via the Qualified Intermediary (QI) Program, in effect since 2001.Under the Qualified Intermediary Program, foreign banks are obligated toshare information with the IRS. Moreover, under IRS Announcement 2008-98, the foreign banks must now actively investigate and report to the IRSwhether US persons (or entities controlled by US persons) are the owners ofthe account. Many thousands of foreign banks are enrolled in the QIprogram. Not fulfilling their QI obligations would result in a lack of accessto correspondent banks in the US, effectively severing such banks frominternational financial transactions. The IRS also routinely audits randomforeign accounts at QI banks. And QI banks must also submit to externalauditors, who might also discover and report non-compliant accounts.Second, via "John Doe" summons issued by the US Department of Justice,approved by a US court and then served upon a foreign bank, requestinginformation about US account holders. In 2002, courts approved John Doesummonses issued against credit card service companies, and the IRS
learned the identities of US persons accessing unreported foreign funds viacredit and debit cards. In 2009, a federal court in Miami approved a JohnDoe summons against UBS, seeking account records of US persons withsupposedly "secret" Swiss bank accounts. In settling the litigation thatensued, UBS agreed to turn over 10,000 names of Americans with accountsat UBS. Aside from the erosion of Swiss banking secrecy, which itself is amonumental development, equally significant is that John Doe summonseswork, and will be used against other banks and financial service providers,in other foreign countries.Third, via the "Hague Convention on the Service Abroad of Judicial andExtra Judicial Documents in Civil and Commercial Matters", pursuant towhich a summons, inquiry, demand for information or documents, from theIRS to an Americanexpat, can be delivered and served upon that expat in thecountry where he resides. It has recently been reported that the IRS has usedthe Hague Convention in issuing administrative subpoenas upon wealthyAmericans in Britain and Switzerland.Fourth, via Tax Information Exchange (TIE) Agreements, which obligatethe foreign country to assist in both criminal and civil tax investigations.Most countries have already signed a TIE with the US, including tax havenssuch as Liechtenstein and Switzerland. Countries which have not yet signeda TIE are anticipating being asked by the US to sign one. Not signing onewould, as noted above, ostracize the defiant country from the internationalbanking system.Fifth, via a Mutual Legal Assistance Treaty (MLAT), which requires eachparticipating country to disclose information - including bank account data -to the U.S. government in connection with an investigation of a seriouscrime, including tax fraud. Treaty loopholes, such as what constitutes "taxfraud" under the laws of the foreign treaty country, have been effectivelyclosed by the successful U.S. attack on UBS and Swiss banking secrecy.The MLATs specify that local secrecy laws may not form a basis forrefusing to provide the requested information.Sixth, if the account is at a bank within the European Union, or a bankoutside the EU that routes via Europe, then the account might already beunder the watch of the CIA pursuant to the "Brussels Agreement", alsoknown as the "Swift Agreement". That agreement gives the CIA direct
Page 1 and 2: ANNEXStatement of the Cabinet of Mi
Page 3 and 4: A togxExcellencies,Allow me to expr
Page 5 and 6: My Government believes and sincerel
Page 7 and 8: A Ni•-) CX )---iADDRESS OFTHE FOR
Page 9 and 10: A AwExAsmara, 23 March 2007Dear Mr.
Page 11 and 12: guise of stable "havens" and keepin
Page 13 and 14: ANNEX 7Eastern Sudan Peace Agreemen
Page 15 and 16: manufactured border dispute when it
Page 17 and 18: to destabilize Ethiopia in order to
Page 19 and 20: Ethiopia says to work for Eritrea r
Page 21: ANNEXEX 11IALGicks A G-REE 11ENT- 3
Page 25: or not to make a voluntary disclosu
Page 36 and 37: development." The NISS said that th
Page 38 and 39: which makes all our efforts and sac
Page 40 and 41: has resident embassies and much dee
Page 42 and 43: NNEX 1610/10/2011%MA - aNI•A rti
Page 44 and 45: +WV •••n •( 1 ;)* 51.,`PaDT
Page 46 and 47: AiQ ivex (3Arnbasciata dello Statod
Page 48 and 49: esettlement scheme. Claims that the
Page 50 and 51: esettlement. Many spend years in ha

Annex - Aiga Forum, an Ethiopian forum for news and views promoting

Create successful ePaper yourself

Delete template?

Save as template?