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View Diary: Swiss Bank Folds After US Criminal Conviction (43 comments)

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  •  Marjmar - there is nothing illegal about having an (7+ / 0-)

    account at a Swiss bank or one in the Cayman Islands as long as you report them to the IRS when they are established. The tax on the income on the assets held in "tax havens" is the same as if those assets were held in the US.

    "let's talk about that"

    by VClib on Thu Jan 03, 2013 at 09:59:04 PM PST

    [ Parent ]

    •  There is no point in having a swiss or carrib. (6+ / 0-)

      banking account if you are just going to report the balance and pay taxes on the interest...  unless you want to speculate in ChF i guess.

      •  Sandino - that's not correct (0+ / 0-)

        There are thousands of investments that are available only to people with foreign accounts because the sponsors of those investments don't want to register them with the SEC or deal with reporting to the IRS. In addition, many foreign accounts are outside the US legal system so that if someone has an adverse judgement the assets held offshore could not be attached. It's common for some professions, like physicians, to place some assets outside the control of the US court system.

        "let's talk about that"

        by VClib on Fri Jan 04, 2013 at 06:05:41 AM PST

        [ Parent ]

    •  I understand the difference between legal vs. not. (0+ / 0-)

      Still, my sentiment and desire stands.

      I think you're kidding yourself to think/believe folks place money in Swiss/Cayman accounts for reasons more weighty than evasion of US tax obligations...and that they honorably report the creation and income of and on those accounts.

      Maybe you're the exception? ;)

      "The most potent weapon in the hands of the oppressor is the mind of the oppressed." ~ Steven Biko

      by Marjmar on Fri Jan 04, 2013 at 09:23:12 PM PST

      [ Parent ]

      •  marjmar - there are tens of thousands (0+ / 0-)

        of US taxpayers with legal, offshore accounts. Every wealthy US based family has been advised to take a portion of their assets and put them offshore. Frequently those funds are in several countries and they often have residences there as well. It's smart contingency planning. If for some unlikely reason things in the US became problematic there is a plan in place, and available assets to relocate. At some level of wealth it makes no sense to hold all of your assets in any single country.

        There are also business reasons why people end up with foreign accounts. Every large venture capital, private equity and hedge fund has sister funds offshore for foreign investors. Every partner in those investment firms by default has foreign domiciled assets as the offshore funds have distributions.

        Those are just a few of the reasons along with those I mentioned earlier, access to investments not available for US based assets and shielding assets from the US civil court system.

        "let's talk about that"

        by VClib on Fri Jan 04, 2013 at 09:33:53 PM PST

        [ Parent ]

        •  Yes, I recall hearing many of those reasons... (0+ / 0-)

          ...about investment opportunities, etc. for creating offshore accounts...not too long ago...from Mitt Romney.


          "The most potent weapon in the hands of the oppressor is the mind of the oppressed." ~ Steven Biko

          by Marjmar on Sat Jan 05, 2013 at 06:18:50 PM PST

          [ Parent ]

          •  And those are perfectly legal if they are disclose (0+ / 0-)

            if they are disclosed to the IRS. As a partner in a private equity fund Romney had foreign assets just like every other partner at Bain Capital and every partner at every large private equity fund in the US. Income on those assets are taxed exactly the same as if the assets were domiciled in New York.

            "let's talk about that"

            by VClib on Sat Jan 05, 2013 at 07:37:58 PM PST

            [ Parent ]

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