Premier reassures nervous US taxpayers
(CNS):The premier has pledged continued government support to the many US passport and green card holders living in theCayman Islands who are due to be hard hit by upcoming changes to the US tax law. Under the Foreign Account Tax Compliance Act, which will take effect 1 January 2013, all US citizens, whether living in the US or abroad, will have to meet more stringent reporting obligations to satisfy Internal Revenue Service requirements. At a special US tax seminar on Tuesday, McKeeva Bush assured the hundreds of people who packed the ballroom at the Marriott Beach Resort that “we will continue to do whatever else we can as a government to assist…We trust you will be better informed as a result of today’s proceedings.”
FATCA will require foreign banks to send the IRS information on US account holders, which will enable the tax authority to identify and heavily penalize individuals who fail to disclose any overseas bank accounts or financial interests exceeding US$10,000 in total.
Bush sought to reassure the standing room only audience, who were obviously concerned by the planned changes to the tax law and how these would affect their income and bank accounts, both of which are liable to US tax.
Commenting that people have approached him about what the government was doing to help and asking, ‘Why can’t you fight this?’ he added, “we have done our best on many fronts in dealing with the United States and other jurisdictions in regards to tax matters.
“Sometimes we can fight; other times fighting gets us nowhere. We have to sit down, be reasonable and slowly take your hand out of the lion’s mouth.”
The premier spoke about government trips to Washington, DC to speak with IRS and Treasury officials. “The last (visit) was very important and, I think, successful and we will have to continue having dialogue with them.”
With the US elections coming up next year, Bush stressed these meetings take on added importance “as more and more officeholders and potential officeholders get on the bandwagon and try to use Cayman as a scapegoat for their own failures.”
Calling the tax issues “very complex matters” Bush said he would see what more could be accomplished in Washington by possible additional talks with the IRS and US Treasury. “We recognise your concerns,” he told the crowded room, “and we want as government to do what we can to help you.”
Category: Business
I’ll bet you Ezzard would not allow the US including IRS to bully our government into using our banks as a reporting agency.
I hope to God our dormant accounts money did not go to the US!
What inflated egos some of these posters have. This is not directed at Cayman, this is directed at all Americans who live anywhere in the world, not just Cayman. McKeeva can do nothing because it applies to Americans living in every country of the world, not just Cayman. Also, this is NOT a new tax, it is only a new way of making it harder for those who refuse to pay the taxes that they already owe to continue to evade their taxes.
Anonymous 3:28,
Don’t be so narrow minded. While this may be directed at all US citizens worldwide. The US or IRS can not bully all the governments of the world to bow to them. Its only those they deem vulnerable, like the C.Is ’cause we have so much money at stake. like all the money in the world at least 90% of it or so they say, is this true?
They feel that since they threw away their money to those Wall Street Whores, they should now rape the Cayman Islands Obama said it in 2008 have you all forgotten when he attacked us talking about our building with 25,000 businesses registered in one building. He was giving you a warning signal from that time on. While throwing hardworking American tax payers money into the hands of Wall Street Thieves by the trillions of dollars. US citizens should break away and give up their citizenship if it means keeping their wealth.. Big Mac will be glad to shake your hand and welcome you, just don’t forget to place a few dollar notes in your hand while shaking it!
Although a fishing expedition by the IRS might be of concern to U.S. citizens on Cayman, there are other issues altogether which should be of more concern: The U.S. government handed out over 700 billion dollars, closer to a trillion, to financial institutions as part of it’s so called TARP program TARP of course stood for Toxic Asset Relief Program. Where did those "toxic" assets originate from? The very same organizations. With the derivatives markets wholly unregulated after Reagan and Clinton these organizations were free to invent whatever esoteric and meaningless substances they could think of and they did just that. CDO’s. Toxic mortgages bundled into investment grade securities. And not before they were given bogus credibility by Ratings Agencies in collusion with the process. Did they know what they were doing? Absolutely and in many cases used outright fraudulent activity to support their endeavors. Many of the recipients of this government largess had also been previously charged with criminal activity. To name just a few: Citigroup (investigated for money laundering), Wells Fargo (charged with securities fraud), ditto for JP Morgan, Morgan Stanley, AIG, Lehman Brothers, Goldman Sachs, and Bank of America. Fortunately they were able to pay fines from the millions they made from their illicit behavior and make the charges go away. With the cooperation of the government. In spite of all this it did not prevent them from continuing their operations and in many cases getting in deeper. It also did not prevent them from receiving taxpayer funds when their self-created $hit hit the fan. The result of all this, along with deregulation, and two expensive and ill-conceived wars (the fraudulent billing from Halliburton and others if reimbursed would relieve some pressure on the Treasury), is that the U.S. Government is broke. And heavily in debt. Obscenely so. And you – the U.S. taxpayer – are being pursued to cover the losses with surprisingly much more vigor than the criminals. That’s the question you should ask yourself. Why weren’t they pursued? Why wasn’t that money retrieved? They weren’t hard to find. They were on Wall Street and many had already been indicted. How did they get away with it? How do military contractors get away with it? Time after time? The answer is simple: U.S. taxpayers are being milked. By a government that has been bought. You may have voted for them but they don’t work for you.
15:34
Wrll said, same here in Cayman we voted for these idiots but they don’t work for us.
***** No 2 hoots about it… Taxation from the fruit of your labor/business is Highway Robbery! Rather, tax people who are polluting the environment! Tax people who has large amounts of land, beach front, and not using and cultivating the lands for any good, but to put no tresspassing signs to block people and access to the beach! Tax the right way and funnel the tax-monies to community efforts and financing government! But… listen to this and try to understand the moral implications… when I work hard to make a living and have saved my monies in a bank, how can you say it is morally right for a government to forcible take it away from me without my consent??? Don’t care what anyone say, but the IRS are the biggest crooks in history. They have just found a way to manipulate and intimidate other governments and financial institutions outside of their jurisdiction in order to “steal” people’s monies so they can claim that it is allto support their “welfare state.” This is just not right! If I want to give to charity, I can do so from my heart! Don’t “force” me or fine me to pay what I don’t want to pay! And “Income tax returns are the most imaginative fiction being written today.” -Herman Wouk ***** Libertarian
No man is an island, Lib, and that is where your selifsh libertarian ideology breaks down. As a society we have determined that the best means of deciding issues such as taxation is through elected government. And the people of America, through elections, have voted for governments that support the idea of income tax.
Your view is in the minority when it comes to "morality" and is so selfish to be viewed as "immoral" by the vast majority of people.
So what you are really saying now is that you are against the rule of law and democracy. Because the laws, passed by elected governments of the US, provide that US citizens have to pay tax. Those US citizens in Cayman who do not pay their taxes are criminals. You cannot have the benefit of being a US citizen without accepting the burdens that come with it.
***** You say, “And the people of America, through elections, have voted for governments that support the idea of income tax.” Why is that??? People in America have no other choice my friend, because there is no party that puts the people’s interest first. Learn in history and you will find that the majority has always been in the wrong! And yes, proudly, I am against the rule of law and this sort of democracy that is not really a true democracy but a U.S. oligarchy. My friend, just because something is legal, does not make it right! *****
http://www.lp.org/faq
Not very popular with voters, though…
I guess for all those rich tax-evaders, the party is well and truly over!
Look at the big picture, its not all about taxes, its about all the world’s wealth in this lttle jurisdiction! This is ticking them off!
I agree taxes is one thing, its an excuse, and mark my words, they’re going to ask Big Mac to sign something to extract monies from out banks mark my word. this is only the beginning. With an uneducated individual leading the way they can lead him by the nose and get him to sign every piece of paper that they put in front of him in DC or his hotel room! We’re doomed!
Ezzard, what would you do?: I know you have a better idea talk to me.
Is there a hotline to allow US authorities to know there are tax dodgers visiting the country. I have a few names to tell them about. Do we get a percentage if they catch them?
Here is a link. Feel free to rat out tax dodging US citizens here who have annoyed you. It is quite a liberating experience.
Ihttp://www.irs.gov/individuals/article/0,,id=106778,00.html
You can report anyone you suspect of not paying their US taxes to the IRS. They will keep your name anonymous. If the person is successfully prosecuted, you get 10%. Any American citizen, including Caymanians with US passports or green cards, is required to file an income tax form to the IRS every single year, even if they don’t owe any tax. Income from a job is exempt from tax up to about US$86,000. Any income earned from a job above this amout is subject to tax. Any other income such as rental income, capital gains, royalties, etc. is fully taxable.
This could be a real cash cow for some people, not to mention the potential for blackmail and extortion….
There you go rat out the people who don’t pay taxes to the US government but don’t rat out the criminals destroying your own country.
Revenge is a dish best served with a 10% kickback . . .
How can the USA make OUR banks do anything? Some agreement must have been signed.
This isn’t rocket science. The US government is telling all banks worldwide (not just those in Cayman) that if you want to do business with US banks, then you must provide this information. If you don’t want to provide this information, fine, then your bank can’t do any business with any banking institution in the US. What do you think the Cayman banks will decided to do? Refuse to provide the information about American citizens and green card holders and be cut off from US banking institutions, or provide the information and continue being able to do business with US banking institutions. There is nothing for McKeeva to sign – he has not power or influence over this, and this is not directed against Cayman. It is world wide. If you are Caymanian and don’t have a US passport or green card, then this will not affect you. If you are a US citizen or green card holder who has filed your IRS tax forms yearly and paid your taxes, then this will not affect you. This will only affect tax cheats, this is not a new tax.
Isn’t the exemption around 90,000 US a year per person per US citizen ? Does that mean if our spouse is not a US citizen and we trust them ,can’t we put our assets or bank a/c in spouse name? Would that help? The US is the only country that is doing this, isn’t that true? Then there must be someone out there who saw this coming before like Dart and has a solution better then putting it under your bed . Come on someone throw us a bone.
Our politician should have come and talked to us, to hear what we would have compromised with like ……. maybe an amount, over 10 million taxable only.
The exemption you refer to has a caveat: the exemption exists IF you are paying income taxes in your country of (earning &) residence.
It is not and was not intended to be a carte blanche exemption on any level of income.
What has not been mentioned is that if any US citizen wishes at some point in their life to return and take up residence in the USA, having avoided paying and filing taxes will only catch up to them. The same applies to those individual states having an income tax requirement: NY state for instance, is vigilant and tenacious in pursuing those folks for back taxes,
And in all instances – it’s not just the basic tax due, but years of accrued and accruing penalties and interest as well.
"What has not been mentioned is that if any US citizen wishes at some point in their life to return and take up residence in the USA, having avoided paying and filing taxes will only catch up to them. "
I know loads of people that lived in Cayman for years, didn’t file taxes and went back to the States to live. Nothing happened.
"The exemption you refer to has a caveat: the exemption exists IF you are paying income taxes in your country of (earning &) residence."
Something about the Premier’s story about his meeting with the IRS seems to me very suspicious. The Premier has made so many deals… just what if there is something he is not telling us…
You folks might also want to consider that there is ZERO concern in the US about this, other than banks complaining about the bookkeeping. Those that think the way you do are already cheating and can’t enter the discussion. There are plenty of American investors who have already been reporting their interests in Cayman based tax favored entities (ie the zillions of LLC’s) when required and they don’t really give a hoot about this. Tax evasion is not your best business model anymore, tho’ it clearly was in the past and some of you apparently still cling to it.
"Not to worry. I have been to Washington and stayed at a very nice hotel and after a very nice lunch spoke with someone’s receptionist. I didn’t get to speak to any law makers because they were busy but I got a really nice pen and signed some more agreements." I hope this addresses your concerns."
***** On the 25th of September 1997, the Senate Finance Committee criticized the IRS: “does the IRS cover up occurrences of abuse? The answer is, yes! If the true number of incidences of taxpayer abuse were ever known, the public would be appalled. If the public also ever knew the number of abuses ‘covered up’ by the IRS, there could be a tax revolt.” I won’t be surprise if there are soon to be “cover ups” by any of their representatives canvassing the Cayman Islands. *****
Haha – the cost of jumping the immigration queues at MIA just got a lot more expensive!!!
Lots of Caymanians who could afford to went up to the USA to have their kids.
Many of them then did nothing to raise a flag with Uncle Sam. No passport, no social security… so have been busy running their businesses and coming and going from the USA with their Cayman passport saying they were born in the USA… the IRS systems didn’t pick them up on their radar.
A whole lot of Caymanian business owners now wondering if the net will tighten.
If you want to uphold the law and to help tighten the net, here is a site you might be interested in :
http://www.irs.gov/individuals/article/0,,id=106778,00.html
Yes, and when this happens the hospital bill for having children in the USA was paid for in full and not left as a debt like a lot of Americans that actually live there do. Trips to and from the USA to buy goods in their stores and visit their amusement parks are fully paid for. The USA is not OWED anything. A passport is just a travel document. Where you are actually living and contributing to that society is more of an indicator of where your country of citizenship is. After all, shouldn’t WE get to pick which country we want to be a citizen of and not have someone just claim us for THEIR tax benefit?
If you have a CIG public pension (define contribution) and are a US citizen how the he** do you report your income on that investment or that
1) you don’t know how much it it because they don’t report that timely
2) the gains are not annual gains but use a three year period to smooth out returns
3) They give you a balance statement of $50,000 plus interest..what is interest?
4) PSPB is not US recognized so you are suppose to be taxed on the investment
So can I have my money back or does the pension board intend to turn me into a criminal. Was this mentioned at the meeting
No one knows. But I bet your account earnings are taxable since the account doesn’t qualify with the IRS.
This law goes much deeper than US citizens filing taxes on foreign earned income. That has been a rule for many years and is nothing new to Americans living in foreign countries around the world.
The new law now makes the foreign banks comply with the IRS. Any US citizen living and working in any country around the world usually will have a bank account in their community. This is where the money is accounted for and the IRS will force allforeign banks to report any money you have in your account so they can basically match it against what you report on your 1040 form. The only way around this new law is to keep your money out of the banks.
Now, the problem with that is: where do you hide thousands and thousands of dollars if you don’t put it in a bank? This is where the problem lies.
If you make very little, then the new law doesn’t really affect you because your income will fall under the maximum exemption amount. But, if you make a lot of money, what to do with it so it’s not reported by the banks.
I know this all sounds very under-handed and evasive but this is how the wealthy think and they are constantly trying to find ways to pay the least amount of taxes possible.
What happens to all the money that’s hidden here from our wealthy US friends? Very interesting!
And, don’t think that if you had Cayman status and a passport you’re immune from anything as this new tax law applies to any and all US connections. It also applies to corporations and corporate bank accounts that are held by dual citizens.
Big Mac CANNOT do anything about this new tax law nor can he "have a talk with Washington" as this law is being enforced on every country and not just the Cayman Islands. If you want to place blame, place it on the wealthy and big businesses that have been evading taxes since the beginning of time.
I agree that most of our heads should be something more than just a HAT RACK"
Thank God mine isn’t. While the Cayman Island’s premier promises to do all that he can to assist US citizens living in the Cayman Islands and Caymanians with US passports; if your political science knowledge and grades is of any help at all, its time to increase your GPA. He’s blowing up smoke again!
This premier is smart, slick, and subtle. Sorry to be the one to make the announcement but not many Caymanians are a match for this man not even Mr.Alden McLaughlin, he doesn’t even come close so please do not risk the country in 2013 by putting Alden in that seat.
Mr. Ezzard Miller is most qualified to oppose this man so you better consider him strongly for premier in 2013 not because I like him but I truly believe Ezzard Miller is an honest man that we can trust, he tells the truth and he IS NOT A MONEY HUNGRY SHARK. All Ezzard has to do is stay away from the topic of independence for these Islands at this time and he will be the front runner in elections 2013 for the position of Premier.
What does all of the above have to do with US Taxes, passports citizenship and blaming the Cayman Islands for US failures? Well here I come presenting to you the real facts feel free to conduct your own reality check:-
Can the Premier really do all that he can to assist anyone in lobbying the world super power the United States of America?
Has the Premier really done all that he can to assist those responsible for paying taxes to the US IRS? Again can he?
More IMPORTANTLY This is a topic that can, will, and probably as we debate this matter; IS PISSING OFF WEALTHY TYCOONS around the world and especially those living among us here in the Cayman Islands.
Mr. Dart as we are all aware denounced his US citizenship in order to enjoy and keep his billion dollar fortune away and out of the IRS hands. A brilliant but painful decision to make. One must respect him for making such a great sacrifice. There’s Mr. Ryan and a few more.. What is their take on this whole scenario?
I’ll tell you what their take is going to be pretty soon. They’ll seek out other jurisdictions that will not be bullied by the US government that has thrown trillions of dollars away into the hands of dining and wining reckless wall street corporations while the poor people and the education system suffers for lack of funds that went down the toilet. Now they’re trying to use the United Nations, the E.U. and mother UK to threaten or give us some screen shots of independence for these Islands which means loss of our Financial Industry and all that money RELOCATING TO THE UK and or DIRECT RULE LIKE Turks and Caicos, They are putting us in between a rock and a hard place. Its not all about taxes, collecting taxes is not enough money for SHARKS! its all about the Cayman Island’s Financial Industry, they want to SHUT US DOWN! one way or another! They are well aware we are in no shape or form ready for independence, and they are well aware we are the world’s FINEST ECONOMISTS, this makes them mad that we are a world leading financial center holding most of the world’s wealth! Our money is their honey and these political bullies are determined to get all of it, they want not some but they want IT ALL!
What’s in it for Big Mac? Well, the rich North Americans already invested in our society who thought they were living in the promised tax free land will have no other recourse but to stretch forth their Rod like Moses did, and apply for Cayman Islands citizenship denouncing their US citizenship, if this is too bitter a pill for them to swallow, it will not at all do them any good culturally, nor economically to continue living and investing in the Cayman Islands, they will leave and go back home. Most of them will fight. The rich and elite x-pat investors in the Cayman Islands would have a hard decision to make and that is Denounce their U.S.citizenship too like Mr. Dart did and consequently would not have to pay taxes to the US IRS.
Yes, consequently there’s something in it for the Premier, a whole lot! there’s a whole lot of rich people that would gain Cayman Status and continue living here as Cayman Citizens this will serve him well in 2013 and pay well for the UDP election campaign! .
Take careful note the date 2013 this law comes into effect! THIS IS NO COINCIDENCE ! You need to confirm who really set that date, Obama or Big Mac?! This date could not have been set without the US negotiating this with our Premier, and with his APPROVAL! he has not been upfront with us.
The question still remains Has Big Mac really been trying to help these people or himself?
Why should we believe this man, if these are the kinds of talks as a premier he has been engaging in, shouldn’t he have at least had a press release before leaving for such important and serious talks? My Golly its the IRS! it leaves many unanswered questions, why couldn’t he tell the people the subject of his Washington DC discussions before hand, and give us a full report of the exchange of dialogue. Maybe the FOI will take care of this on our behalf or CN News Service.To date the premier is only reporting what the US is going to do! He’s not telling us what his response was, I can imagine based on the decision made! so use your own imagination people, don’t be dupede again and again. His story is Not good enough it has too many holes in it and I’m afraid and I’m not convinced he’s helping anyone but himself.
This is not a conspiracy theory. these are the facts. Wake up this is no time to allow a Premier UDP, PPM or Independent to play games with your life and tell you stories, some of you need to get on the plane each time he leaves to go abroad for talks, and sit in on these hearings or hire an agency to do this service for you. WE NEED TO HEAR WHAT HE’S TELLING PEOPLE. We seem to get the short end of the stick each and every time.
I honestly don’t know whether to laugh or cry.
"I agree that most of our heads should be something more than just a HAT RACK"
Thank God mine isn’t."
I’m not at all sure this is conveys the message you intended, but the hat certainly fits.
I know there is a message in there somewhere. I just can’t crack the code. It is impenetrable. The more I read it the less sense it makes.
It is so sad! But you are right about one thing – Alden is indeed no match for Bush! And I wish there was someone other than Ezzard Miller, but he is the only one I see that put Caymanians First. Whenever his name is mentioned on this site, as reflect by the number of thumbs down, indicates that he is hated by most expats that prefer their own interest over the natives of these islands.
"All Ezzard has to do is stay away from the topic of independence for these Islands at this time and he will be the front runner in elections 2013 for the position of Premier."
So all he has to do to is stay away from the single most important issue facing every Cayman politician, an issue on which he has views which would destroy the entire economy and fiscal revenue base of Cayman almost overnight. Easy.
Stop telling lies on Ezzard. He’s now viable so he’s a target for cheap shots and expensive shots as well!
Ezzard’s performance meets the standards of a responsible politician elected to the Cayman Islands Legislature as well as he meets the standards of what a role model elected official is all about and how they should serve.
He’s proven to be a leader, with sound judgment on fiscal matters and the affairs of this country. The majority of all others elected especially Captain Eugene a mere extension cord ! leaves much to be desired.
Florence, I like your comment, it is really thought provoking and a brilliant article, deep thinking, thank you, I agree with you 100% its not all about taxes they want ALL OUR MONEY! You hit the nail on the head.
They will never be satisfied.
He is a dangerous demagogue who threatens to become the Pied Piper of the Mafia of the Mediocre (aka The Entitlement Crew) leading Cayman down a path to economic disaster.
First of all, these are not new taxes. Its just that now those who owe but are not paying will find it much harder to be a tax evader. Those who are complaining want all the rights and privlige of being an American citizen but they want someone else to pay for it.
Mexico for years has been trying to get the USA to give them the same information on Mexican Citizens living abroad in the USA. The USA refuses to do it. Get the picture? Since when does a country “own” it citizens if they choose to live in another country. Last I checked I was free man.
This is only a problem for Americans who have been cheating, and, frankly, it’s none of Cayman’s business if America chooses to tax Americans overseas. It’s been the law for years. Dual citizens have to take the bad with the good. Cayman financial institutions can either do the record keeping and reporting, or stop dealing with American banks. Your choice.
Folks, the best option is to give up your U.S. citizenship – don’t try to dodge the IRS!
And please don’t forget there is always CHINA on the arise, now the second strongest economy in the world!
Everyone is fighting to get into the U.S., but the way things are now on the international scale, the U.S. may just become bankrupt. Right now, they owe China in the trillions – and what does China owe them???
Giving up US status is no easy task. There is an very high exit tax that must be paid, among other requirements. If it wew easy, many more people would have done it years ago.
lol… you must be working for the irs
Not patting myself on the back but some people have been ahead of the curve. This US policy is very protectionist and even goes to the extent of trying to control the migration of people out of the US. Yes, despite everything in the media about illegal migration to the US the truth is in fact that the well educated Americans are fleeing to greener pastures.
The media hasn’t picked up on this but to me it is a well known fact that more recent immigrants are leaving i.e. Chinese communities are returning to China and the list goes on and on. Why do you think this law has been extended to Green Card Holders? The U.S.A has gone bust and now people are leaving and the new immigrants are from mostly Central America but the US Media has picked up on that i.e. they are stealing american argicultural jobs! Think about the trend apply it if you are international enough or have enough US connections. Some people believe that America is still king of the hill and that empire never die. I saythe British and Roman are examples of dead empires. The new empire is in abroad and each year many of American talent is leaving to fuel this new expansion. Even I, Born in Cayman but raised in the US for over 15 years can tell you that America is like a big tree that is dying. You have to look at the leaves to gauge its health not at the trunk! Look at the US dollar going the way of the Mexican Peso and the Jamaican Dollar.
The reason why you are paying so much for Gas is not that it is expensive but has to do with the fact that the speculative aspect of US dollar is worth less and less everyday e.g. investors feel that the US dollar and all fiat currency will be worth less when it is clear that the emperor has no clothes (we don’t know when). Some time back CNS had a view point about CIMA investing in gold and I supported then Gold was at about $900 per t. ounce today it is over $1500. I also advised about purchasing Brazilian Real bonds when the Real was at 1.80 now it is 1.57 or so and the yield is still 10%. Now America the counrty of my mothers birth and that which stands for (Liberty?) is trying to make me pay taxes because I became a Citizen not by my own choice and now I choose not to live there and not to vote etc but they still want my money because I have a right (only one which I know and that is the right to borrow on credit which is why they have trouble in the first instance)
Now I have problem which I may deal with by solve” by borrowing from a US bank to solve my tax problem and then defaulting on a loan from that said US bank” my problem solve but the dying eagle they still face the same problem you have lost the people by only looking out for the rich. You have given your people the tools of education but have not provided the opportunity as you have been focused on wars and special interests. Your people have moved out of your country and have now taken resident in other countries and they may boycot the US and further deprive you of money (this is globalization my US friend and you can’t beat it so join it; oh I forgot..hook on drugs or otherwise busy suing someone on reality T.V). You THE US GOV. are the foe and as Americans we have been taught to appose any foe…This is the spirit of an American and you cannot break the spirit despite how you have fought against ” We the People”
So reinvent yourself or just die with respect but don’t turn the people against you
Paragraphs. Most people do not consider them optional.
get rid of your US passport……problem solved….it isnt worth paying taxes they do nothing for individuals who actually work in any country
No bobo problem not solved; in no way does renouncing your citizenship or residency negate your responsability to pay what you owe to uncle Sam. That was made clear during the meeting.
the bill in congress was called the DART bill (sometime in the 90’s i think), if for obvious tax reasons you renounce your US citizen ship, you still have to pay taxes for ten more years………
well im not paying them a cent. if i am u.s. citizen wanting to be free from a welfare hungry state, they will have to come after me first – simply move and live in tim-buc-too, and i will forget about banking my money aswell… i am single and have no responsiblities
No responsibilities and no grasp of basic grammar either. Are you protesting this new law with a punctuation boycott?
….. No taxation without punctuation!
‘McKeeva Bush assured the hundreds of people who packed the ballroom at the Marriott Beach Resort that “we will continue to do whatever else we can as a government to assist…We trust you will be better informed as a result of today’s proceedings’
The government always assists and people are not usually better informed as a result of any government proceedings::))
Nothing in life is FREE!
The USA takes a very simple view of these matters. If you enjoy the benefits of US citizenship or permanent residency, then wherever you live and whatever other citizenship/passport you hold, you have an obligation to file US tax returns and pay US taxes if due.
The provisions of the HIRE/FATCA do not impose a new obligation to pay US taxes. They simply make it a lot harder to evade them. And will ultimately make it pretty well impossible for a non compliant US taxpayer to hold a bank account or investments outside the USA with a foreign bank of repute. There are various avenues open to those who are currently non compliant so they can become compliant. None are particularly attractive. But the alternatives are much worse.
Why did the CI government likely spend thousands of dollars to bring in some of the speakers from the US when there are perfectly qualified individuals on island that could have done the same?
I am not about to file a FOI so if all speakers who came in from the US did if for free then I’ve miss spoken.
I mean you people have to be the biggest bunch of ingrates in the world. If there had only been local speakers you would have complained.
An excellent combinationof local and overseas speakers with regular and broad experience in this were there to answer questions. I had questions that got answered and I am extremely pleased that the effort was made to ensure that highly qualified and experienced individuals with multiple perspectives were there.
If it cost something to bring them in, then who cares? Over 400 people got the help they needed. I think that’s money well spent- it’s my money too as i am a taxpayer HERE and I thank Government doing this.
Why should the Cayman government spend money giving advice to American tax dodgers?
Who exactly are “you people”. I wrote the comment and I am an expat. I just don’t see why the government needs to pay for something they likely could have got for free. I bet you could have got your answers from some local accounting firms (either at the conference or on your own dime).
I’m not about Caymanian vs Expat. I’m about the government saving money.
Again if the US speakers did it for free then it is justified.
Nothing has changed in terms of their obligations, they have been evading taxes. The only news is tha the US has found a new way of finding the people that has been violating the law.
Now CIG is going to help these people with our money?!?!?!?!?
Well we just sunk another few inches….
Not as simple as you think boss! Alot of people who were simply born there and never lived or earned there and who don’t even have a social security number are right here in Cayman.
I don’t know what kind of business you are in ‘businessman’ but hopefully you give more thought to that than you do toyour comments.
The US Income Tax Law is a FRAUD! Wake Up! Educate yourselvs and you will see that there is no law forcing you to pay an income tax to the US Government.
Lots of people are sitting in jail in the us who have made that claim. Try it Freedman Man, you will end up as someones girlie man
typical response from a man against freedom – what a cruel thing to say! Maybe you should end up in the jailed pent house!
There is a special cell for you right next to Wesley Snipes.
…and Richard Hatch…
***** One word: theft! *****
“People have approached him about what the government was doing to help and asking, ‘Why can’t you fight this?’” Yes this nation was been built on secretly dodging taxes due in other countries, so why can’t we, American citizens, go on evading taxes like we have been used too? (but please don’t stop our shopping trips to Miami).
I think the point has been missed here. The real issue is the increased amount of work and reporting virtually every business in the Cayman financial industry will have to do. Whether it is the agreement it will have to enter into with the IRS or the annual reporting it will have to do – this is work that clients cannot be billed for. And speaking of clients – this will have a significant impact on clients with any sort of US nexus. Assuming they have done everything correctly in regards to reporting, they will still be very reluctant to have accounts with any Cayman institution that will be scrutinized and potentially subject to withholding. These clients will just move their business back to the US.
Lexus nexus- I’m afraid you missed the point friend. What already is happening is that US citizens are being turned away by financial institutions around the world who have made a simple business decision to no longer accept American clients given the unrecoverable expense of building the systems to comply with this new ridiculous regulations!
So its not about Cayman- and people moving their accounts from here back to the States. they may be turned away by the institutions themselves- especially multi-national organizations that have strategic decisions at corporate headquarters filtered down to the CI branches.
"Give them Cayman status" We have given it to persons who have become a strain on the government purse. So If a man has thought it fit to move to Cayman with his wealth, invested and brought his family, will be no strain on the Government and the people of Cayman, and is a good citizen, why not let him enjoy his retirement life here. Some may not agree, but that is my comments.
On the other hand I would suggest we get a copy of two books and read.
(1) The Terror Conspiracy. Deception 9/11 and the Loss of Liberty, and
(2) Rule by secrecy. both written by Jim Mars.
After reading these two books we will have a basic idea of what is taking place in todays world. There is no stopping of what will take place so we might as well seek a way for survival, Live and let live…
What? Give them Cayman status because they are not paying their U.S. taxes???? It has always been the case that a U.S. citizen wherever they live are due to pay their taxes. This is nothing new – so tell me why give them Cayman status?
well… they did so for Dart in 2003 – before, he had bad dealings with the IRS
Twyla other interesting books are Confessions of an Economic Hit Man by John Perkins and 13 Bankers by Simon Johnson. They both give a better view of U.S. monetary policy. The documentary The Smartest Guys In The Room is also very good about the Enron scam. And of course the Oscar winning film Inside Job pretty much sums it up. The U.S. government can give blank checks to guilty as sin financial institutions, meddle in foreign governments, repeal the Glass-Seigal Act, start no-bid wars, and do all kinds of things beneficial to friends and acquaintances. And at the same time plunder the U.S. economy for the select few. But… when it runs out of money…….where does it look? Ordinary U.S. citizens do not have lobbyists. They do have Congressmen and Senators. But they’re on the take too!
So you want to give Cayman status to people that are breaking the law of their country…..?
Yes I agree no surprise here. The US did say some time ago that it intended to go after the tax dodgers and those having dual citizenship which is not recognised in the US. Mr. Dart who did renounce his US citizenship years ago should know that also. Unless you have a LOT of liquid assets, private planes and numerous residences all over the world don;t try it UNCLE SAM will get you eventually, specially with all the treaties of shared infoemation that can only be bypassed for some by some corrupted high level Politicians. Easy to google much of what I just said.
I bet the short line in Miami immigration doesn’t seem all that attractive anymore! lol
This should not come as a shock to any US citizen; the Federal tax laws on earned income while living abroad is not new!! Same goes for all US property owners who should have been reporting rental income and/or bank account income (dividends or interest) all along.
From those of us who have complied all along – good luck to those who have deliberately ignored the US law!
You might want to check the U.S. federal income tax sourcing rules on bank interset for non resident aliens first before writing.
Please don’t confuse the issue: the comment (above) clearly referred to US citizens!
A US citizen is never an alien non resident of his or her own country by tax code definition, since he or she already has full US citizenship status. All US citizens are responsible for income taxes on their income from any source whilst living abroad (as in Cayman) with some exclusions IF paying income taxes in their country of current residence.
Only those who are not full US Citizens – such as a new arrival on a J-1 or F-1 visa is generally a non-resident alien. But generally, students (F-1 or J-1 visa status) will not meet the substantial presence test until they have been in the USA for 5 calendar years and visiting teachers/researchers (J-1 visa status) will not meet the substantial presence test until they have been in the USA for 2 calendar years.
Please re-read the original post. The subject started out as all US persons. But “All US property owners” this is the subject of the particular sentence in question. There is no direct link of owning US property and being a US person. Therefore as the sentence continues it must be applied that all persons receiving US bank interest/dividends must file which is not the case.
The original posting was addressing all US CITIZENS – not all US persons! I would never have been so vague when the issue concerns US citizens living abroad.
The reference to US property owners was to US Citizens living in Cayman who owned property in Cayman (or for that matter anywhere in the world outside the USA) – not to any others. While this reference was clearly implied it was not stated because the news article the posting responded to had made that distinction.
Thank you!
Amen, I have been in Cayman 15 years, audited twice by the IRS and have never been assessed an additional dime. I don’t like the US law (one of the few in the world) that taxes world wide income, but I don’t think it will be changed given their need for revenue.
“In God we trust, all others pay cash”.
This has been in the works now for some time.