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Finally the Senate Foreign Relations Committee Approves 8 Tax Treaties!


We previously posted on October 31, 2015, Republican and Democratic Lawmakers Vow to Push Tax Treaties Delayed by Sen. Paul! where we discussed that over a year ago, we posted U.S. Senator Rand Paul Continues To Block 5 Important Tax Treaties where we discussed that the U.S.-Switzerland tax treaty remains stuck in the Senate after Sen. Rand Paul (R-Ky.) blocked an effort to propel it forward by Senate Foreign Relations Committee Chairman Robert Menendez (D-N.J.)
When a bipartisan Senate panel lambasted Swiss bank Credit Suisse for helping rich Americans evade billions in taxes, some watching the high-profile hearing couldn’t help but notice that Sen. Rand Paul sticks out like a elephant in the room. Senator Rand Paul on Wednesday June 4, 2014 again blocked the U.S. Senate from moving toward ratifying five pending tax treaties, saying they would make it easier for foreign governments to invade the privacy of Americans.
Now Treaties with:

  1. Chile,
  2. Hungary, 
  3. Poland,
  4. Japan,
  5. Luxembourg,
  6. Spain, 
  7. Switzerland, and
  8. the proposed protocol amending the multilateral Convention on Mutual Administrative Assistance in Tax Matters,

were approved on November 11, 2015 by the Senate Foreign Relations Committee, but their fate on the Senate floor remains uncertain.

The treaties, which also include agreements with Chile, Hungary, Spain, and Poland, as well as an international convention on mutual assistance on tax matters, were approved by unanimous consent. However, the chief opponent to passage of new tax treaties, committee member Rand Paul (R-Ky.), wasn't present at the markup.

The next step in the treaty approval and ratification process would consist of:
 
  1. The Committee scheduling a date to meet to report on the eight tax agreements, out of committee and send them to the full Senate for consideration.
  2. Once that occurs, the Senate must give its advice and consent to ratification with a two-thirds majority vote.
  3. After the Senate takes action, the President must sign an instrument of ratification to complete the approval and ratification process in the United States.
The agreements would come into force once instruments of ratification are exchanged on the respective tax agreement.
 

US taxpayers who have undeclared accounts in Credit Suisse or other Swiss banks, may now want to consider applying for the US Offshore Voluntary Disclosure Program (OVDP), which sets a limit to the penalties imposed on them by the Internal Revenue Service (IRS) for failing to declare foreign assets and earnings.
 
Once either:
  • The Swiss Banks disclose an account holder's name to the IRS under the non prosecution agreement or 
  • Mr. Andreas Bachmann or Josef Dorig or Markus Walder or Susanne Ruegg-Meier or Roger Schaerer discloses an account holder's name to the IRS or
  • Any 1 of the other 11 Credit Suisse Bankers, who were indicted in 2011 along with Mr. Dorig, discloses an account holder's name to the IRS 
the OVDP election is no longer available to that account holder!!!
 
Taxpayers Who Wish To Take Advantage
Of The OVDP Must Act Quickly!  
Have Un-Reported Income From a Swiss or OECD Country Bank?
 

Value Your Freedom?

Contact the Tax Lawyers at
Marini & Associates, P.A.
 
for a FREE Tax Consultation Contact US at 
or Toll Free at 888-8TaxAid (888 882-9243).

 

 
Sources
 
EY
 
Reuters

Read more at: Tax Times blog

 
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