Yearly Archives: 2016

We previously posted DoJ Launches CriminalInvestigation of Hundreds of US Taxpayers Named in Panama PapersLeak! where we discussed that the offshore planning world was set on fire with the news that 11 million documents were leaked from the Panamanian law firm Mossack Fonseca. 

They allegedly show how Mossack Fonseca has helped clients launder money, dodge sanctions and evade tax and now The Guardian reports that U.S. Attorney Preet Bharara has “led several crusades against criminal wrongdoing in the financial sector, is already investigating several of the more than 200 US citizens named in the papers.”

This raises the question of whether U.S. government investigators are able to make use of these "Privileged Materials" that appear to have been hacked from Mossack Fonseca, an overseas law firm?

 

Contact the Tax Lawyers at 

Marini& Associates, P.A.  

 

for a FREE Tax Consultation

at: www.TaxAid.us or www.TaxLaw.ms or

Toll Free at 888-8TaxAid (888) 882-9243

 

On December 17, 2014 we posted How to Complete Form W-8 BEN E & and W-8IMY? where we discussed how to fill out the various Form W–8's, which now has increased to 8 pages in some cases.

This post provided foreign entities a set of step-by-step instructions to complete the new Forms W-8BEN-E and W-8IMY, as well as a general overview of the obligations imposed on foreign financial institutions under the new chapter 4 FATCA regime including:

1. Determine which form is appropriate for the foreign recipient to complete
2. Determine whether the foreign entity is a foreign financial institution (FFI) or a non-financial foreign entity (NFFE)
3. A foreign entity that meets the definition of a foreign financial institution (FFI) should identify whether an Intergovernmental Agreement (IGA) applies, as well as its requirements under the applicable IGA. and
4. Any other foreign entity that is not an FFI should determine its specific Chapter 4 non-financial foreign entity (NFFE) status and document that NFFE status on Form W-8BEN-E or W-8IMY.

Now the IRS has issued new versions of Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting, and the instructions to that form. The revised form reflects changes made in regulations and other pronouncements. that were issued since the publication of the previous version of the form, as well as changes to more effectively enforce already-existing withholding and reporting rules.

The updates contain several changes to the form itself, some changed instructions, and many instances of added detail to existing instructions. Included among the form changes are:

1. New chapter 4 status box for accounts that are not financial accounts.
2. A new checkbox has been added to the chapter 4 statuses in Part I, line 5, for payments made to payees for accounts they hold that are not financial accounts.
3. Increased information required regarding LOBs for beneficial owners making treaty claims.
4. Reporting by sponsored FFIs.
5. Form W-8BEN-E, Part IV, which previously had been entitled “Sponsored FFI That Has Not Obtained a GIIN” is now entitled “Sponsored FFI.” IRS is now requiring disclosures by sponsored FFIs, regardless of whether the FFI has obtained a GIIN and, 
6. A new line has been added that requests the GIIN of the sponsoring entity and
7. Increased compliance requirements for nonreporting IGA FFIs.

 

Chancellor of the Exchequer, George Osborne hailed the international expansion of a UK-led deal to automatically share information on the ultimate owners of companies as over 20 jurisdictions, including British crown dependencies, overseas territories and EU member states sign up.

Gibraltar, Isle of Man and Montserrat are amongst those joining the pilot initiated by the UK and launched with Germany, France, Italy and Spain at the G20 last week. As such their tax and law enforcement agencies will now exchange data on company beneficial ownership registers and new registers of trusts enabling more effective investigation of financial wrongdoing and tax-dodging.

The Chancellor of the Exchequer, George Osborne said: Only a week after Britain launched this initiative with some of our closest European partners, it’s gaining the international support that will be vital to make it truly effective.

I welcome the early commitment made by Gibraltar, Isle of Man, Montserrat and Anguilla to participate and call on all of the remaining overseas territories and crown dependencies to do likewise.

It should be clear to all countries and tax jurisdictions that the world is moving firmly in the direction of greater tax transparency and the UK will continue to push for an internationally agreed blacklist for those that refuse to do the right thing.

The pilot will begin to explore the best way for countries to share this information, with a view to developing a truly global common standard in a two-step process leading to the interlinking of national registries.

To date the following countries have agree to Automatic Data Sharing:

1. UK, 
2. Germany,
3. France,
4. Italy 
5. Spain  
6. the Netherlands,
7. Romania,
8. Sweden,
9. Finland,
10. Slovakia,
11. Latvia,
12. Croatia,
13. Belgium,
14. Ireland,
15. Slovenia ,
16. Denmark,
17. Malta,
18. Lithuania,
19. Cyprus,
20. Bulgaria,
21. Portugal,
22. Estonia,
23. Greece and
24. Czech Republic.

Have "Unreported" Offshore Income?

 

 

 Want to Know which OVDP Program
is Right for You?

 

Contact the Tax Lawyers at 

Marini& Associates, P.A.  

 

for a FREE Tax Consultationat: www.TaxAid.us or www.TaxLaw.ms or

Toll Free at 888-8TaxAid (888) 882-9243

 

Sorce:

HM Treasury

On April 4, 2016 we posted Huge Leak From the Panamanian Law Firm Mossack Fonseca! where we discussed that the offshore planning world was set on fire with the news that 11 million documents were leaked from the Panamanian law firm Mossack Fonseca.  They allegedly show how Mossack Fonseca has helped clients launder money, dodge sanctions and evade tax.

This post also speculated that U.S. persons will probably show up, given that Mossack Fonseca apparently maintained a branch in Las Vegas, Nevada, under the name of M.F. Company Services and Mossack Fonseca Company Services is currently attempting to fight a subpoena brought in the U.S. District Court for the District of Nevada seeking information on at least 123 companies that it created.

Then on April 18, 2016 we posted Have An Un-Reported Account Associated With Mossack Fonseca? Like Your Freedom? Call Us!  where we discussed that U.S. federal agents and prosecutors told NBC News earlier that they had begun to mobilize in an effort to obtain and use the Panama Papers to bolster Existing Criminal Investigations and Prosecutions and to Launch New Ones.

 Now The Guardian reports that U.S. Attorney Preet Bharara has “led several crusades against criminal wrongdoing in the financial sector, is already investigating several of the more than 200 US citizens named in the papers.”

The ICIJ received an email, published by the Guardian, from U.S. Attorney Preet Bharara for the Southern District of New York indicating that his office had “opened a criminal investigation regarding matters to which the Panama Papers are relevant.” Further, his office would greatly appreciate the opportunity to speak as soon as possible with any ICIJ employee or representative involved in the Panama Papers Project in order to discuss this matter further.”

The failure to declare certain interests in foreign financial accounts and assets can potentially bring about significant civil penalties and in egregious situations, the possibility of criminal problems.

In today's environment, where there is rampant computer hacking and where governments are paying staggering whistleblowing rewards for information about ANYONE who currently has unreported income or money in an offshore account, needs to be aware that these types of leaks of perceived confidential information from an internal data base of a law firm, trust company, financial institution or otherwise can occur at anytime, anywhere in the world!

 

Contact the Tax Lawyers at 

Marini& Associates, P.A.  

 

for a FREE Tax Consultation

at: www.TaxAid.us or www.TaxLaw.ms or

Toll Free at 888-8TaxAid (888) 882-9243