Previous post Next post

Treasury Introduces New Rules To Stop Tax Evasion, Kind Of


Treasury Introduces New Rules To Stop Tax Evasion, Kind OfIn the wake of the Panama Papers being released, the U.S.Treasury announced that it will use existing powers in order to make two rule changes that are intended to stop tax evasion.

First, in a rule which amends the US Bank Secrecy Act, the Treasury said it will require financial institutions to verify the identity of the real people, or “beneficial owners”, who control companies opening accounts with them. The aim is to prevent true owners of the account from being masked by the names of lawyers or other representatives.

 

The second rule, which the Financial Times reports is just a proposal at this stage, closes a loophole that Treasury says “allows foreign persons to hide assets in US accounts.” The rule targets foreign owned US entities which can currently operate free of oversight by U.S. tax authorities, most prominently single member LLC’s, making them report ownership and transaction data to the IRS.

Treasury Secretary Jack Lew said these steps would “increase transparency and disclosure requirements and empower law enforcement.” Lew also acknowledged that these changes won’t stop everything being done to work around the system:

“Despite these efforts, bad actors will continue to seek new ways to exploit the system.

According to the FT, Lew is urging Congress to pass three additional pieces of legislation that will further enhance the disclosure of beneficial owners; require U.S. banks to give more tax information on their customers to foreign counterparts; and approve pending tax treaties with Switzerland and Luxembourg.

These reporting requirements and due diligence activities will certainly come at a significant cost for banks, as much like the Sarbanes-Oxley rules did to companies, the new controls will simply overwhelm the current structure and cause banks to have to invest heavily in furthering their compliance departments.

And then of course, the fact remains that anyone who may be impacted by these changes can just pull their funds and re-route them through Rothschild Wealth Management & Trust, Reno, NV.

Treasury Introduces New Rules To Stop Tax Evasion, Kind Of

 

They will most assuredly help “navigate what is a complex financial landscape.”

Full story here
Tyler Durden
ZeroHedges' Tyler Durden is the hero of Fight Club, the 1999 movie based on Chuck Palahniuk's novel that reflected Chuck's experience in the Cacophony Society Quote: "Goddamn it, an entire generation pumping gas, waiting tables, slaves with white collars. Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don’t need. We’re the middle children of history, man. No purpose or place. We have no Great War. No Great Depression. Our Great War’s a spiritual war… our Great Depression is our lives. We’ve all been raised on television to believe that one day we’d all be millionaires, and movie gods, and rock stars. But we won’t. And we’re slowly learning that fact. And we’re very, very pissed off." --> see more about Tyler on snbchf
Previous post See more for 3.) Global News on Switzerland Next post
Tags: ,,,

Permanent link to this article: https://snbchf.com/2016/05/durden-treasury-introduces-rules-tax-evasion/

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.