Offshore Tax Havens: Obama Proposes to Abolish Existing Tax Breaks and Tax Deferrals for Corporations by prweb

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									Offshore Tax Havens: Obama Proposes to Abolish Existing Tax Breaks and Tax Deferrals for Corporations
President Obama announces a series of proposals to abolish existing Offshore Tax Havens and Tax Deferrals for US corporations and citizens.
(Vocus) May 7, 2009 -- Mr. Obama said he is seeking to crack down on overseas tax havens in an attempt to "close the international tax gap," according to Sovereign Society legal council, Bob Bauman, JD. Sec. Geithner noted that the G-20 group of high tax welfare countries had agreed to act against offshore tax havens. "For years, we've talked about shutting down overseas tax havens," Obama said. "That's what our budget will finally do." At the Expense of U.S. Corporations and Consumers American businesses pay one of the highest corporate taxes in the world at 35% of profits, (closer to 40% when other fees and state taxes are included). Obama proposes to abolish existing tax breaks and tax deferrals (companies like Citigroup (C), General Electric (GE) and Procter & Gamble (PG) use) for corporate offshore activity and to tax at the 35% rate, all U.S. corporate foreign business as if conducted within the U.S. According to Sovereign Society, legal council Bob Bauman, JD, Americans who have offshore bank accounts, investments and other financial activity are, for the moment, still legal under U.S. laws. "But Obama's tax plans announced today echo the traditional IRS and U.S. Justice Department attitude that assumes any offshore financial activity by a U.S. person is probably illegal, illicit or both," says Bauman. The full text of Obama's press release describes the plan for getting tough on overseas tax havens. Many of Obama's proposals were taken right out of the Levin-Obama Anti-Tax Haven legislation, first introduced in 2005. Other provisions in the Obama plan include: *Using the current "Qualified Intermediary" system under which the IRS decides which offshore banks are acceptable to them, foreign banks will have to disclose any and all information the IRS demands. *U.S. investors who fail to report offshore investments will face penalties limited to 20% of the amount of the understatement. The statute of limitations for enforcement is typically three years. The penalty will be upped to 30% and the statute extended to six years. The plan will double certain other penalties when a taxpayer fails to disclose foreign financial accounts. *The IRS will hire 800 new employees devoted specifically to international enforcement, including agents, economists, lawyers and specialists, increasing the IRS ability to crack down on offshore tax avoidance and evasion, including transfer pricing, financial products such as abusive trusts, and transactions such as purported

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securities loans. *The Treasury Department will be given authority to issue expanded regulations on offshore financial institutions under the QI program. In the coming days, The Sovereign Society will publish further information on the impact of this blatant attack on Americans who dare to do business offshore. One thing is certain though, that this will accelerate a trend already well underway – more offshore banks, unwilling to become IRS vassals, will reject new American clients and terminate some of those who are current clients. ###

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Contact Information Bob Bauman, JD The Sovereign Society http://tinyurl.com/d4smxc 410-454-0424

Online Web 2.0 Version You can read the online version of this press release here. PRWebPodcast Available Listen to Podcast MP3 Listen to Podcast iTunes Listen to Podcast OGG

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