Monthly Archives: September 2012

Informants Wanted–$104 Million Bounty

If anyone is looking for a new career, how about IRS Informant–$104 Million Bounty.

This new opportunity results from IRS Awards $104 million to the Swiss banker whom US just released from jail.  Bradley Berkenfeld has turned whistleblower after helping wealthy Americans evade paying income taxes.

I guess we can take some consolation in the fact New York Times reports Birkenfeld must pay tax on his windfall.   I wonder what his tax rate will be and how long it will be before it is stashed in Cayman Islands.

As I suggested on another tread, perhaps Birkenfeld should be appointed to replace Douglas Shulman as IRS Commissioner.

 

Will Russia Be The Next To Fall?

I truly thought Russia would be a FATCA hold out.  Not if this article is correct:  Russian Banks May Soon Be Subject to US Monitoring Regulations (picked up from Noble Dreamer and Just Me on Twitter)

Especially scary is this statement:  Banks “have no choice, though, since they will otherwise become outcasts: compliance with FATCA has been virtually accepted by the global community.”

If Russia caves, who will be next?

 

 

Is Globe and Mail Recycling Old News? Why?

U.S. Delay in Tax-Evasion Crackdown Heartens Ottawa said a headline in last week’s Globe and Mail.

Tiger forwarded me the link to the article in the Globe’s mobile edition which gave September 6, 2012 as the publication date. But, when I accessed on the Globe’s regular website, it gave a publication date of July 14, 2011 with an Update of September 6, 2012.

Most of the comments on the G & M website are from July, 2011.  I think most of us were still blissfully unaware of this issue then.

The information in the article says Flaherty is “glad” the reporting date for FATCA has been delayed until 2014.  However, I don’t think that had occurred yet in July, 2011.  I think this information was several months old by September 6. 2012.

Are Tiger and I missing something?  Is there any new news in this story?  Has anything happened relating to FATCA in the past week to cause Globe and Mail to publish this September 6–and for Mr. Flaherty to be “glad?”  Tim, do you have any information about any new updates or delays?  Does anyone else?

In any case, Mr. Flaherty sure seems to be a jolly fellow these days.  He was “happy” about the streamlined regulations and is “glad” about the reporting delay for FATCA.

Well, I won’t be either “happy” or “glad” until Mr. Flaherty once and for all says Canadian banks must adhere to Canadian law and Canadian law will not be changed to accommodate a foreign government.  Mr. Flaherty’s silence is just making me mad.

 

 

 

 

 

Is FATCA the new Franklin expedition?

There has been quite a bit of publicity in Canada in the past few weeks regarding a new high tech search for the ships of the doomed Franklin expedition. The location of the  HMS Erebus and the HMS Terror has been described as Canada’s greatest historical mystery.

I’m sure most of you know that Sir John Franklin set out in the mid 1840’s to find the elusive Northwest Passage. He and his crew all perished. Since then there have been many attempts to find the ships or relics of the crew and their equipment.

So, what does this have to do with FATCA? Well, one thing most researchers agree on is that Arctic explorers of the day, especially from England, totally dismissed the collective wisdom of the Inuit .Of course the Inuit had learned over many generations how to survive in the most severe conditions. But  the English saw the Inuit as primitive savages from whom nothing could be learned.

As Victoria and Christophe point out in another thread, cultural differences may have some part in the lack of flexibility of the IRS as they continue to develop FATCA regulations. Are the lawyers at the IRS frozen in time like the body of one of the  Franklin crew members, John Torrington?

FATCA has been described using several metaphors, most commonly as a train. Perhaps it should be referred to as a ship sailing in foreign waters. One of its few success stories (if you can call it that and I know many American-Swiss would not describe it that way) has been in Switzerland, a landlocked country.

Is the USS FATCA also doomed?

 

The Economic Impact of FATCA and FBAR Terrorization

Why aren’t our governments more concerned about what the US is doing? Ignoring, for the moment, the legality, or lack thereof, why don’t the governments of our countries recognize that the terrorization of their citizens by the US has a far greater effect than just the immediate financial impact on an individual? Continue reading