Tax haven Feed

Apple CEO Tim Cook is not apologizing for the corporate tax strategies that the California-based multinational technology giant employs. Apple's headquarters is in Cupertino, California, but it takes maximum advantage of international tax breaks. (Photo by Joe Ravi, license via CC-BY-SA 3.0) U.S. tax law currently allows Apple and a slew of other global enterprises to keep money overseas and not pay tax on it until the funds are brought back, or repatriated. "And when we bring it back, we will pay 35 percent federal tax and then a weighted average across the states that we're in, which is about... Read more →

Donald Trump's revised tax plan, which many economists and tax experts have decried as the latest version of Republican supply-side economics, is still getting a lot of attention. The biggest criticism is that the tweaked tax proposal, despite Trump's populist spin, still gives ways too much to the wealthy. Just who would win and exactly how much in the Trump vs. Hillary Clinton tax battle will continue to be debated (though perhaps not formally…) until Nov. 8. Delaware, considered by many to be America's top domestic tax haven, welcomes drivers and taxpayers looking to keep money out of tax collector... Read more →

If you have substantial funds in foreign bank accounts or investments, you may need to file a Form 114, Report of Foreign Bank and Financial Accounts. And you need to do so by next Wednesday, June 30. That's a firm deadline. No filing extension is allowed. Because of the no-give for this filing, the due date earns this week's By the Numbers honor. FBAR triggers: The filing is known as the FBAR, which is a sort-of scrambled acronym for the form's name. Although the Internal Revenue Service is intensely interested in tracking potentially taxable money wherever in the world it's... Read more →

A little more than a month ago, inquiring tax eyes were focused on Panama. Specifically, folks were curious about a law firm in that Central American nation that allegedly helps the wealthy stash cash in global accounts that are out of reach of their nations' tax collectors. ICIJ has produced a video, The Panama Papers: Victims of Offshore, that shows what the organization says are the unseen victims behind the email chains, invoices and documents that make up the Panama Papers and the shadowy offshore industry. A couple of U.S. states, Nevada and Wyoming, were named as international tax haven... Read more →

Nearly 10 million households didn't have bank accounts in 2013, according to the latest survey of individuals' banking habits by the Federal Deposit Insurance Corporation (FDIC). That's a lot of folks for whom cash is king. That's also a lot of people for whom paying a federal tax bill is not that easy … until now. Taxpayers who want to pay their Internal Revenue Service bills in cash now can do so at some 7-Eleven stores. Tax cash: As I noted last week at my other tax blog, the 7-Eleven cash tax payment option is available thanks to an arrangement... Read more →

Here in the United States, the income gap between the very wealthy and the rest of us is getting a lot of attention, thanks in large part to the Democratic presidential nominee race. Sen. Bernie Sanders has made the wealth gap a key part of his effort to dislodge former Secretary of State Hillary Clinton from the front-runner spot. Image source: ZMEScience But the battle is waging far beyond the U.S. borders and the 2016 presidential campaign. Global inequity off the charts: There's also a global inequality crisis, says Oxfam in a new report, and it is reaching new extremes.... Read more →

Puerto Rico has been in the news a lot this year, and not for its attributes as a Caribbean vacation spot. Coast Guard Barque Eagle sailing past the 16th-century Fort San Felipe del Morro in San Juan, Puerto Rico, on May 21, 2014, as it head for a four-day port call. Image courtesy the Defense Video & Imagery Distribution System and Wikimedia Commons. The U.S. island territory has been criticized for being a tax haven for wealthy Americans. Its overall finances have come under scrutiny after Puerto Rican leaders wanted to declare bankruptcy to write off its $72 billion debt.... Read more →

You can't blame tax cheats if one of Martha and the Vandellas' biggest hits has been playing on a loop in their heads of late. Thanks to a new global effort, tax evaders will have nowhere to run to, nowhere to hide. Click image to view Martha and the Vandellas YouTube video. Crossing borders to chase down tax cheats: Tax Inspectors Without Borders, or TIWB, is a new initiative from the United Nations (UN) and the Organization for Economic Cooperation and Development (OECD). Its goal, is as its name indicates, is to send trained tax professionals from richer OECD nations... Read more →

The economy has picked up, but times are still tough for many, including Uncle Sam. He loses millions every year in tax money because people don't pay what they owe. Some of these so-called tax gap losses come from accounts U.S. taxpayers have in other countries. The Internal Revenue Service has been trying for years to locate these accounts and get the taxes due. Remember, we have a worldwide tax system instead of, like most other nations, a territorial tax system. Territorial vs. worldwide taxes: Under a territorial system, taxes are paid to the country in which the money is... Read more →

The Vatican takes scripture seriously, especially Mark 12:17. "Jesus said to them, 'Render to Caesar the things that are Caesar's, and to God the things that are God's.' And they marveled at him." It's not quite amazement, but it is definitely interesting to see the Holy See signing on to the Foreign Account Tax Compliance Act. Panoramic photo of St. Peter's Square, the basilica and obelisk, from Piazza Pio XII in Vatican City courtesy I, Dfmalan via Wikimedia CC. FATCA, FBAR facts: Known in tax-speak at FATCA, this federal law generally requires U.S. citizens and resident aliens to report any... Read more →

Everything is bigger in Texas. While millions of Americans were filing their annual tax returns on April 15, Internal Revenue Service lawyers were in Dallas Bankruptcy Court filing what is believed to be a record $3.23 billion in tax liens against a Dallas man and his late brother's estate. Sam Wyly and his older brother Charles, who died in a car crash in 2011, were well-known Dallas businessmen, philanthropists and at one point very rich. They amassed fortunes buying, expanding and then selling companies, including Bonanza and Ponderosa steakhouses, Michaels arts-and-crafts stores, Green Mountain Energy and Sterling Software. In 2006,... Read more →

In case you missed it as the 113th Congress wrapped up its frantic lame duck days, it did manage to keep Internet access for most folks safe from taxation for another fiscal year. One of the provisions packed into the $1.1 trillion federal spending package passed in mid-December was an extension of the moratorium on local and state taxes for Internet access through October. A quick note for all y'all logging on in Hawaii, New Mexico, North Dakota, Ohio, South Dakota, Wisconsin and alongside me here in Texas. We'll still see taxes on our Internet providers' bills because the taxes... Read more →

Domenico Dolce and Stefano Gabbana, founders of the high-end Italian fashion label Dolce & Gabbana, are no longer convicted tax evaders. Italy's highest court on Oct. 24 overturned two lower court convictions that the duo had participated in what Italian prosecutors called a "sophisticated tax fraud" scheme. Dolce and Gabbana had been found guilty in April 2013 of using a Luxembourg holding company to avoid paying taxes of €200 million ($253.39 million U.S. as of this morning's exchange rate) on royalties for sales in 2004 and 2005. That sizable chunk -- I'm going with the more than $253 million U.S.... Read more →

Fashionistas are wrapping up a month of shows that have taken them from New York to London to Milan and now Paris. One big name designer, however, might not be paying as close attention as usual to the City of Light's catwalks this week. A couple of Prada executives have taxes instead of tailleur on their minds. A month of global fashion weeks, during which designers preview their coming spring and fall clothing lines, concludes this week in Paris. Click the image for a glimpse of what the rich and famous might be wearing in early 2015. Prada chairwoman Miuccia... Read more →

The biggest complaint about the U.S. tax system is that it gives Uncle Sam too much of our money. There are lots of contenders for the next biggest tax complaint. One, however, is getting special attention right now. It's the dissatisfaction with the Internal Revenue Code's worldwide reach. The ability of Uncle Sam to tax money earned all over the world has come under scrutiny thanks to the recent rash, Walgreens notwithstanding, of corporate tax inversions. An inversion is an administrative process by which a U.S. company buys a foreign subsidiary and then on paper makes that overseas business the... Read more →

Walgreens, the Deerfield, Illinois-based drugstore chain that's been around for more than a century, is buying the remaining 55 percent of the British pharmacy Alliance Boots. Walgreens had purchased 45 percent of the European pharmacy/retailer in 2012. But unlike many other U.S. companies who've been scooping up overseas operations, Walgreens will not make Great Britain it's official headquarters. The company announced today that Walgreens Boots Alliance, the company that will exist when cash-and-stock deal is finalized sometime next year, will be based in the Chicago area. No corporate inversion planned: Many business, finance and tax watchers had expected Walgreens to... Read more →

The debate on the use offshore tax havens has been heating up. On the individual side, the Internal Revenue Service on July 1 got a new tool, the Foreign Account Tax Compliance Act (FATCA), to track down international accounts the tax man says are used to avoid paying Uncle Sam his due. On the corporate side, the conversation about offshore tax havens went off the charts when the iconic, 114-year-old pharmacy chain Walgreens -- the inventor of the malted milkshake, for heaven's sake! -- announced it was considering moving its headquarters from Deerfield, Illinois, to Switzerland to lower its tax... Read more →

U.S. residents' tax focus this past week was the Internal Revenue Service's latest crackdown on offshore accounts. The dreaded Foreign Account Tax Compliance Act, or FATCA, took effect July 1, giving the IRS another tool to track down international accounts that U.S. citizens use to avoid paying Uncle Sam his due. But one person's tax hell is another person's tax haven. Do you know what tax haven country is home to this ancient castle? That's right. The good old U. S. of A. is considered a fine tax haven for Oz residents looking to pay a little less to the... Read more →

Today is the one day that residents of drought-stricken Texas don't want rain. We want our July 4th fireworks! Of course, we ostentatious celebration loving Texans still realize that one errant spark can ignite a whole swath of dehydrated vegetation. That fiery possibility is probably why we don't object to paying the Lone Star State's tax on fireworks. Limited sales, added tax: Texas fireworks retailers have been collecting a 2 percent fireworks tax in addition to the state and local sales taxes since 2001. Specifically, the tax applies to "small fireworks in the U.S. Department of Transportation's 1.4G category that... Read more →

It's a busy weekend, what with Flag Day and Father's Day and some personal things to take care of, so I'm cutting to the chase with my regular look at noted last week at my other tax blog. First came the news that the Internal Revenue Service has officially adopted a Taxpayer Bill of Rights. This has been a long-time goal of National Taxpayer Advocate Nina Olson, who joined IRS Commissioner John Koskinen to announce the move. Both also used the opportunity to send a message to Congress. The IRS can do a better job of providing customer, i.e., taxpayer,... Read more →