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SoCalDem

(103,856 posts)
Fri Aug 16, 2013, 04:07 PM Aug 2013

Whoa Nellie !.. Caymans will now report to IRS on accounts owned by Americans

http://www.washingtonpost.com/world/the_americas/cayman-islands-us-conclude-talks-on-pacts-aimed-at-uncovering-americans-overseas-assets/2013/08/15/82e898dc-05d5-11e3-bfc5-406b928603b2_story.html



Cayman Islands, US reach agreement on reporting Americans’ assets in Caribbean territory

By Associated Press, Published: August 15

KINGSTON, Jamaica — The Cayman Islands says it has reached agreement with the United States to provide information on accounts held by American citizens to comply with a sweeping U.S. law designed to combat tax evasion. The British Caribbean territory, considered the world’s sixth largest financial center and a major haven for mutual funds and private equity, said the texts of the new pacts will be made public once an official signing ceremony is held.


Steven Pearlstein 8:56 AM ET

The Cayman government said the pacts are tied to a U.S. law called the Foreign Account Tax Compliance Act, which was enacted in 2010 and expected to take effect next year. The law targets non-tax compliance by U.S. citizens with foreign accounts around the globe, and Washington is pressing nations to provide client data.

Financial Services Minister Wayne Panton said in a Tuesday statement that the agreements illustrate the tiny three-island territory’s “commitment to engage in globally accepted tax and transparency initiatives.” The islands plan further talks with Britain’s government to finalize terms of a similar information-sharing arrangement for British citizens. There is nothing illegal about U.S. citizens opening bank accounts and trusts in places like the Cayman Islands or Switzerland, but some people illegally use them to hide money and avoid taxes at home.

Such overseas accounts have come under a crush of scrutiny in recent years, and offshore financial centers like the Cayman Islands and British Virgin Islands have scrambled to sign new international tax treaties and defend their financial sectors. Zero direct taxation and friendly regulations have helped the Cayman Islands lure global money in recent decades and dramatically transform its economy from one based on seafaring, fishing and rope making to one built on financial services and tourism.

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Whoa Nellie !.. Caymans will now report to IRS on accounts owned by Americans (Original Post) SoCalDem Aug 2013 OP
Well, that should have a real positive effect on Wall Street... kentuck Aug 2013 #1
That's gonna sting a bit... MineralMan Aug 2013 #2
so will this be considered spying on americans too? nt msongs Aug 2013 #3
Paging Rmoney... ecstatic Aug 2013 #4
Reporting is one thing NV Whino Aug 2013 #5
Yup. They may just sit on the info for the sake of their 1% friends. FiveGoodMen Aug 2013 #6
I would think that whoever is behind this Isoldeblue Aug 2013 #8
Protect it. nt valerief Aug 2013 #16
You are right, we should have skipped doing anything. JoePhilly Aug 2013 #20
Mitt...are you listening? SummerSnow Aug 2013 #7
youbetcherass, he's all ears on this! lastlib Aug 2013 #14
So now that I know American corporations are people, are they also American citizens? n/t A Simple Game Aug 2013 #9
You should start a separate thread with that question. JDPriestly Aug 2013 #29
Errrrr, transfers imminent Iliyah Aug 2013 #10
"(T)exts of the new pacts will be made public once an official signing ceremony is held." Divernan Aug 2013 #11
Maybe my Cayman Island Proposals are starting to gain traction with the administration! FSogol Aug 2013 #12
Surprise! Surprise! This did nor occur during a republican administration. pampango Aug 2013 #13
haha!! freshwest Aug 2013 #31
Did the Americans have time to pull/move their funds? Frustratedlady Aug 2013 #15
"enacted in 2010 and expected to take effect next year" Ed Suspicious Aug 2013 #18
"enacted in 2010 and expected to take effect next year" So they had a nice Ed Suspicious Aug 2013 #17
Like where? There aren't many left. Most are negotiating with the US to do the same thing. nt stevenleser Aug 2013 #23
I don't know. I don't play in that pool so I guess I was just being hyperbolic trying to stir shit Ed Suspicious Aug 2013 #26
BWAHAHAHAHAHAHAHAHAHAHA Half-Century Man Aug 2013 #19
How many more countries adieu Aug 2013 #21
It's pretty close to over now. nt stevenleser Aug 2013 #24
"Now" now? Iggo Aug 2013 #22
Ouch! Chemisse Aug 2013 #25
I remember the day I landed, going to the bank and seeing a 14 yr old kid counting out $12K cash... juxtaposed Aug 2013 #27
If Mittens can install car elevators Iliyah Aug 2013 #28
The best news I have heard in a long, long time. mick063 Aug 2013 #30
Great news! First the Swiss banks, now the Caymans... bhikkhu Aug 2013 #32
It will never happen. Enthusiast Aug 2013 #33
That money was probably gone before the news broke! nt Are_grits_groceries Aug 2013 #34
^^^this. a 4 year window to make alternate arrangements. magical thyme Aug 2013 #35
Fewer and fewer places for them to flee to though BumRushDaShow Aug 2013 #36
fewer places that we know about, anyway... magical thyme Aug 2013 #37
The Caymans were the '80s. Still, feeling good is better than feeling helpless. n/t Egalitarian Thug Aug 2013 #38
This is great! We were on The Nation (magazine) cruise last December when Code Pink founders mnhtnbb Aug 2013 #39

Isoldeblue

(1,135 posts)
8. I would think that whoever is behind this
Fri Aug 16, 2013, 05:05 PM
Aug 2013

would want that information, so that they could stop these crooks from not paying their just due on taxes. Otherwise, why bother?

JDPriestly

(57,936 posts)
29. You should start a separate thread with that question.
Fri Aug 16, 2013, 07:12 PM
Aug 2013

Interesting topic.

Seems to me that any company buying ad time to place an ad related to American political decisions or issues or campaigns should be an American citizen. Otherwise, we are encouraging foreigners who are not allowed to donate directly to candidates (or at least weren't in the past) to donate indirectly.

That is an interesting topic. I'd like to see what people say.

Iliyah

(25,111 posts)
10. Errrrr, transfers imminent
Fri Aug 16, 2013, 05:23 PM
Aug 2013

to another location where that gawd damn IRS can't touchy feely their hard earned money!

Divernan

(15,480 posts)
11. "(T)exts of the new pacts will be made public once an official signing ceremony is held."
Fri Aug 16, 2013, 05:27 PM
Aug 2013

Strongly predict the changes will NOT be retroactive, and/or there will be a window of time to allow transfers - either out of the Cayman banks or to dummy foreign corporations to hide true ownership.

Full disclosure: I have no $$$ squirreled away on Grand Cayman, but had a wonderful scuba diving trip there a few years back, and recommend:
a great place to stay - Cobalt Coast resort. It's on the far end of the island, away from the Miami Beach high rise hotels/crowds on 7 mile beach, and the thousands of day trippers from the monster cruise ships. My favorite thing was late night relaxing in the hot tub with the sound of the surf & a magnificent view of the ocean and stars and not a single electric light in sight.
http://www.cobaltcoast.com/;

to eat, the Lighthouse Restaurant. Again WAY out of capitol city of Georgetown (need a rental car to get there), but the most beautiful ocean front restaurant I've been to in all my diving adventures. Great Italian menu, with a dining pier extending way out into the ocean. Get there about an hour before sunset and r-e-l-a-x.
http://www.caymanonline.com/lighthouse/index.shtml;

and to visit,
(1)Queen Elizabeth II Botanic Park.
24 hectares/59 acres of rugged woodland, with a walking path winding through wetland, swamp, dry thicket, mahogany-tree stands, and patches of orchids and bromeliads. There's also recreated traditional Cayman home, garden and farm; a floral garden with flowering plants, and a lake with three islands, home to many native birds.
http://www.botanic-park.ky/.
and (2) Pedro St. James National Historic Site. Really gives you the history of the island/that part of the Caribbean with a "multi-sensory" 3D theatre (indoor rain storm, lightning and thunder) and a restored Great House dating back to 1780.
http://www.pedrostjames.ky/

I had a wonderful time there, back before 2008, when my retirement savings largely vanished (thanks W!), and scuba diving became a luxury I could no longer afford.

Frustratedlady

(16,254 posts)
15. Did the Americans have time to pull/move their funds?
Fri Aug 16, 2013, 06:25 PM
Aug 2013

Or does this include exposure to previous and present accounts? It seems the culprits always have fair warning so they can avoid prosecution and/or IRS scrutiny.

Ed Suspicious

(8,879 posts)
17. "enacted in 2010 and expected to take effect next year" So they had a nice
Fri Aug 16, 2013, 06:31 PM
Aug 2013

4/5 year window to get their money to some other more obscure tax free haven.

 

juxtaposed

(2,778 posts)
27. I remember the day I landed, going to the bank and seeing a 14 yr old kid counting out $12K cash...
Fri Aug 16, 2013, 07:01 PM
Aug 2013

As everyone knows on island I knew everyone. I worked for Barkley, and every other hell hole.
Life was good, I every week got payed in cash! The Caymans have a lot of Americans that are hiding from the irs!!!!!!!!!

This is a hole that all else is allowed.

Iliyah

(25,111 posts)
28. If Mittens can install car elevators
Fri Aug 16, 2013, 07:04 PM
Aug 2013

in each mansion then shit he and the other 1%ers can secretively install their own gawd damn vaults.

 

mick063

(2,424 posts)
30. The best news I have heard in a long, long time.
Fri Aug 16, 2013, 07:36 PM
Aug 2013

Honestly, I'm grinning right now.

This goes.a long way toward restoring my faith.

bhikkhu

(10,708 posts)
32. Great news! First the Swiss banks, now the Caymans...
Sat Aug 17, 2013, 02:12 AM
Aug 2013

not that the worst of those guys won't be able to shuffle their money itno some other dark corner, but the harder we can make it the better. Closing down tax evasion is one essential way to close the income inequality gap.

Enthusiast

(50,983 posts)
33. It will never happen.
Sat Aug 17, 2013, 09:24 AM
Aug 2013

The wealthy powerful will never allow this because they are, well, er, wealthy and powerful.

 

magical thyme

(14,881 posts)
35. ^^^this. a 4 year window to make alternate arrangements.
Sat Aug 17, 2013, 10:00 AM
Aug 2013

And don't think Mittens will be impacted. His money is hidden in shell corporations.

This will only get the small fry too stoopid to come up with quasi-legal hiding of money.

mnhtnbb

(31,318 posts)
39. This is great! We were on The Nation (magazine) cruise last December when Code Pink founders
Sat Aug 17, 2013, 10:23 AM
Aug 2013

Medea Benjamin and Jodie Evans (who were speakers for our event) organized
an action in protest of all the offshored money on the day the ship was docked in Grand Cayman.

Check it out:




and a youtube video of the event:



http://codepink.org/blog/2012/12/americans-on-cayman-islands-protest-us-corporate-tax-evaders/



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