click for interactive graphic

 

Fantastic interactive graphic that shows the many ways you can hide taxable income from the authorities. It comes to us from the Center for Public Integrity working with CBC news.

It is a bit complex, so ,maybe I will record a video as a walk through (Note: ScreenR seems to be having issues with Java on a Mac today)

 

 

Source:
Interactive: Stash Your Cash
Zach Dubinsky, Harvey Cashore, Sandra Bartlett, Sean Embury and Tara Kimura and The World’s Best Cross-Border Investigative Team
Center for Public Integrity April 3, 2013
http://www.icij.org/offshore/interactive-stash-your-cash

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

8 Responses to “How to Stash Your Cash Abroad”

  1. Cato says:

    Who knew Canadians were so unscrupulous?

  2. Herman Frank says:

    Believe me, “it’s simply not worth it!”

    There’s a gazillion ways to get funky tax deductions and special deals out of the 100,000 page tax legislation. You only need to be willing to buy yourself an accountant who is willing to put in the time “to help alleviate your tax burden”.

    Is Mr. Romney in prison for tax engineering? Are any of the famous “in your face in the news” hedge-fund managers in prison for tax engineering? Are the big multinational corporations in the doll drums for tax engineering? No, they even set up special profit centers around their tax engineering departments!

    So why would you want to go to prison as a mobster schmuck if you can have it both ways?? Just make use of the full extend of the law! Live the life and get away with highway robbery of your fellow citizen.

    And why do you think I would prefer the whole corporate tax law and personal income tax law to be on maximum two pages – widely spaced??!! The present legislation is a total absolute fantastic monster of pork and special interest favors!

  3. Mike in Nola says:

    Java on Mac’s is not wise. Something like 35% of Macs are running OS versions not supported by Apple any more and thus vulnerable to malware.

    As someone said about Java malware on an unprotected Mac: “it just works.”

  4. Joe Friday says:

    Herman,

    Is Mr. Romney in prison for tax engineering? Are any of the famous ‘in your face in the news’ hedge-fund managers in prison for tax engineering?

    No, but Wesley Snipes is.

    Of course he relied on the “Income tax ? What income tax ?” method, which I don’t recommend.

    :]

  5. gordo365 says:

    Income is for suckers. If you aren’t using flow-through entities, or carried interest, or even simple dividends to fund your lifestyle – you aren’t part of the crowd that controls the rules.

  6. leeward says:

    relevant piece on the Newshour tonight highlighted this story http://www.icij.org/offshore

  7. Greg0658 says:

    PBS Newshour did a segment on this tonight. I was left wondering – is the fraud .. is it possible that the scam is getting people to believe trillions were actually deposited there in the 1st place. Seems an elaborate system of wires in and out could create an appearance of wealth inbedded in these places.

    I see from the slides above, part of the OpSys for placing money in these places, client was provided a VISA card of such, hense the rest of the world accepted churn.

    So what would be the defeat of such thoughts – or proof my wonderment is just wrong. I guess real gold in vaults, or real uncounterfeited cash, but belief in numbers on a spreadsheet – really?

    What makes colored plastic legal tender the world over. This is mind boggeling if.

    Still – before submit – seems the banking sector is concerned with trade for the well being of all and if we have plastic weapons of mass destruction floating – This is mind boggeling if.

  8. garbo999 says:

    It’s a beautifully designed presentation, but it might be worth noting that if you are an “American person” (US citizen or Green Card holder), a lot of this information doesn’t apply because banks outside the US don’t want your business any more.

    I’m basing this conclusion on what I have read and my own situation as an American living outside the US. I have a small business and half of my clients are in Switzerland. It seems obvious to have a basic checking account in Switzerland so I can bill clients in CHF and hold payments there until I’m ready to move the money out of Switzerland. In fact, I did have a CHF account with PostFinance until November 2012, but they closed it with the following statement:

    “Pressure on Swiss financial institutions has increased over the past few months regarding cross-border business with customers domiciled abroad. This particularly applies to relations with customers of U.S. nationality or whose domicile is in the USA. The PostFinance Board has therefore decided to cease business relations with customers domiciled in the USA or who are of U.S. nationality and are domiciled outside of Switzerland.”

    The elephant in the room is a new American law coming into effect in 2014 called FATCA. Congress decided in 2010 to require any bank in the world that wants to do business in the US (i.e. loan money to Americans) to provide a detailed statement to the IRS on their account holders who are US persons. Naturally, a lot of banks in other countries don’t want to do the IRS’ work if they don’t have to, so they are shedding accounts of American persons.

    It will be interesting to see how this whole business develops in 2014. The global accounting industry is slobbering over their “FATCA solutions” in countless press releases, but I think the super-rich plus the corrupt politicians will continue to do their dirty business and evade taxes as usual. Unfortunately, the little guys like me who pay taxes will find it more and more difficult to live outside of the US with an American passport (especially if self-employed or god forbid you made the mistake of opening a foreign corporation and hold an American passport).

    There are many other issues worth mentioning in this context: For example, FATCA also targets corporations outside the US with an American holding > 10% interest. They must begin reporting information to the IRS, so you can imagine how popular Americans are these days as co-owners of non-US corporations. NOT having a US passport is a huge advantage these days in a lot of places (I think this is why Eduardo Saverin was willing to pay several hundred million dollars in exit tax to lose his).

    The Treasury Department has been trying to negotiate Intergovernmental Agreements with many governments since foreign banks are having trouble implementing this US legislation due to conflicting privacy laws in their own countries. The Americans are dangling the promise of reciprocality (e.g. American banks will share information with Venezuela about Venezuelans who have accounts in the US and Venezuelan banks will share information with the IRS about US persons who have accounts in Venezuela), but it is a false promise due to another issue: US persons are subject to American tax no matter where they reside, but the whole rest of the world (excepting Eritrea) only taxes residents. That means the rest of the world doesn’t really give a crap if their citizens residing abroad have accounts in other countries (although there are indications that much foreign money is stashed away in Florida to avoid taxation in South America but let’s not accuse the US of hypocrisy).

    Personally, I think that FATCA will turn out to be the Iraq war of finance. The big question that remains is whether China will agree to have its own banks turn over information to the IRS in exchange for ABSOLUTELY NOTHING (because I doubt that Congress will ever agree to pass a law requiring US banks to send information to the Chinese government).