Liechtenstein Agrees to End Bank Secrecy on Tax Data
<http://online.wsj.com/article/SB124727784329626615.html#printMode> The Wall Street Journal EUROPE NEWS JULY 11, 2009 Liechtenstein Agrees to End Bank Secrecy on Tax Data By DAVID CRAWFORD Liechtenstein initialed a deal with Germany to drop bank secrecy laws starting next year that until now have prevented cooperation in tax probes, one of the first concrete outcomes of promises that offshore tax havens across Europe made this year to open up their bank sectors. Friday's agreement in Berlin was triggered by pressure ahead of April's meeting of Group of 20 nations, which had threatened to produce a blacklist of alleged tax havens for targeting with sanctions. Promises made by Lichtenstein and other offshore banking centers just ahead of the meeting caused G-20 leaders to back off, but the threat of sanctions remains if bilateral cooperation deals aren't reached. A Liechtenstein government spokesman said the German accord follows a model recommended by the Organization for Economic Cooperation and Development, an intergovernment think tank based in Paris. Friday's pact still needs to be signed formally and ratified to take effect. The pact doesn't allow German tax investigators to trawl Liechtenstein bank records searching for possible offenders, the spokesman said. That means banks in Liechtenstein will offer data on clients only in response to specific tax fraud investigations by foreign governments. A spokeswoman for the German Finance Ministry said, "The initialing of the agreement confirms the success of our international effort to obtain cooperation in tax investigations based on OECD guidelines." Liechtenstein and the U.S. signed a similar accord in December. Talks are under way for a tax-information agreement with the U.K., Liechtenstein said, adding it hopes to reach an accord with the European Union as a whole that would overlap, but not replace, its German pact. An accord with the EU would allow Liechtenstein to cooperate with tax investigations in 27 countries, Liechtenstein said. Germany is surrounded by smaller jurisdictions such as Liechtenstein, Luxembourg, Austria and above all Switzerland that offer tighter bank secrecy laws that are attractive to German citizens looking for ways to hide income from tax authorities in Berlin.
With Swiss/UBS nearly ready to capitulate in the Florida suit by the IRS of the USA, what are the current choices for hiding money from the tax authorities? Are any of the digital parks still operating outside of government stings? And how can one be sure now that so many well-rewarded coders are in cahoots with the money-tracing masters? Now any fool knows that governments work their perfidies as much by bluffs as by PR shock and awe, by hanging a few malefactors in public for effect, by shoveling money to those who fuck their customers, by swearing there are seamless agreements among thieving authorities to aid each other harvest each other's low-hanging fruits, by staying far away from those who pay top price for arranging cooperative regulations and biased regulators, by lying about how effective tax evading dragnets work, by firing up a war or two to entertain taxpayers with stories of threatened national security even as pigs root the public tills, and by what else, creating large escape holes in tax laws and international agreements for driving huge trainloads of booty into bunkers supposedly constructed for continuity of government. What other purpose do avenging revenuers have except to invite first use of economic WMDs? Answers are needed, by most secret communication if you please.
On Sat, Jul 11, 2009 at 2:41 PM, John Young<jya@pipeline.com> wrote:
With Swiss/UBS nearly ready to capitulate in the Florida suit by the IRS of the USA, what are the current choices for hiding money from the tax authorities?
you wash it good and render as little unto Caesar that which is Caesars. but make no mistake, Caesar will get his.
On Sat, Jul 11, 2009 at 06:16:25PM -0700, coderman wrote:
On Sat, Jul 11, 2009 at 2:41 PM, John Young<jya@pipeline.com> wrote:
With Swiss/UBS nearly ready to capitulate in the Florida suit by the IRS of the USA, what are the current choices for hiding money from the tax authorities?
you wash it good and render as little unto Caesar that which is Caesars.
but make no mistake, Caesar will get his.
Dunno, you can still incorporate offshore. In fact, moving offshore physically yourself can be a rather useful idea. Many jurisdictions have only very minimal taxation. -- Eugen* Leitl <a href="http://leitl.org">leitl</a> http://leitl.org ______________________________________________________________ ICBM: 48.07100, 11.36820 http://www.ativel.com http://postbiota.org 8B29F6BE: 099D 78BA 2FD3 B014 B08A 7779 75B0 2443 8B29 F6BE
On Jul 13, 2009, at 11:51 AM, Eugen Leitl wrote:
you can still incorporate offshore
Not if you're an American, or an American owned corporation. No matter where you go there "they" are, anymore. I'm hard pressed to think of a "tax haven" that will do business with Americans, anymore. It started with individuals, but now it's companies, too. Cheers, RAH
On Jul 13, 2009, at 2:23 PM, R.A. Hettinga wrote:
On Jul 13, 2009, at 11:51 AM, Eugen Leitl wrote:
you can still incorporate offshore
Not if you're an American, or an American owned corporation.
We're talking about avoiding taxes, here. Certainly you can take your company offshore, but it's getting more and more pointless every year. Like Hughes and May used to say all the time, in the long run, there is no such thing as "regulatory arbitrage". Cheers, RAH
On Mon, Jul 13, 2009 at 02:23:29PM -0400, R.A. Hettinga wrote:
On Jul 13, 2009, at 11:51 AM, Eugen Leitl wrote:
you can still incorporate offshore
Not if you're an American, or an American owned corporation.
A problem which can be rectified in principle.
No matter where you go there "they" are, anymore.
Where there's a will, there's a way. Of course, I don't have that particular problem.
I'm hard pressed to think of a "tax haven" that will do business with Americans, anymore. It started with individuals, but now it's companies, too.
The more incentive to vote with your feet. -- Eugen* Leitl <a href="http://leitl.org">leitl</a> http://leitl.org ______________________________________________________________ ICBM: 48.07100, 11.36820 http://www.ativel.com http://postbiota.org 8B29F6BE: 099D 78BA 2FD3 B014 B08A 7779 75B0 2443 8B29 F6BE
participants (5)
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Chris Brunner
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coderman
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Eugen Leitl
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John Young
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R.A. Hettinga