Category Archives: From Live Blog

Bloomberg - Three ex-UBS AG (UBSN) clients, including two who ran venture capital firms, were indicted on charges of hiding millions of dollars in assets from U.S. tax authorities through the use of secret offshore accounts.

Qualified Intermediaries that need to renew their QI agreements during the period January to June 2012 were granted a postponement under Notice 2011-53to accomplish their registration as Participating Foreign Financial Institutions (PFFI) for compliance with the Foreign Asset Tax Compliance Act.

QI’s must register and receive a QI/PFFI agreement in order to retain their QI status.

The “What’s New” section of the QI home page contains Notice 2011-53 and QI’s should pay particular attention to Parts II and IV of the Notice. Once the registration portal is online all Qualified Intermediaries, Withholding Foreign Partnerships and Withholding Foreign Trusts must register on the portal and receive a PFFI agreement to continue in good standing.

Puerto Rico recently approved Legislation, which grants substantial income tax benefits to individual investors not previously resident of Puerto Rico.

These individuals can benefit from total income tax exemption through year 2035 on their worldwide income consisting of interest and dividends, including dividends from qualifying registered investment companies, and interest, finance charges, dividends and partnership profits from entities under the Puerto Rico International Banking Center Act.


In addition, long-term appreciation in the value of securities occurring prior to establishing Puerto Rico residency, if recognized after ten years of Puerto Rico residency and before January 1, 2036, is subject to a five percent tax. Moreover, long-term appreciation in the value of securities occurring after establishing Puerto Rico residency is totally exempt from tax, if recognized before January 1, 2036.