American tax law to pay thousands to abandon their American citizenship

American tax law to pay thousands to abandon their American citizenship




From Saudi Arabia to Switzerland, through Canada and Serbia, is facing the world of finance and business around the world confusion since the beginning of the year to start the application of American law's commitment to tax private accounts in foreign, or what is known as the law «Vta» which became effective starting from the beginning of July last year, and will be applied entirely by March 2015 and required by law to American banks reporting directly assigned to taxes, also imposes a list of sanctions on any bank does not abide by its terms up to deprive the adoption point of banking or financial-American to play the role of representation or correspondence or even open a bank account upon his American banks, and thus become unable to make clearing the American dollar.

The United States has signed agreements yet with 40 countries to facilitate the complex bureaucratic process, and setting specific dates for the start of the gradual application of the resolution, which provides for follow-up every person who holds American citizenship to pay taxes to the United States. The Treasury Department reached a tentative understandings with 61 other countries to comply with the new American law. It is noteworthy that the United States is one of only two states impose on its citizens to pay taxes to their country, even if they reside in the state to pay her taxes. Eritrea is the second state. While 7.3 million Americans working outside the United States, government data showed that the American 565 thousand of them only pay taxes to the American wardrobe, while Galbhm pay taxes in the place of work and residence. These new measures affect 77 thousand bank around the world by providing integrated data about who holds American citizenship, or there are suspicions that he holds American citizenship.

And up fines for failing to pay taxes to the hundreds of thousands, and even if it is not the American evading taxes Failure to deliver the specific documentation in itself could mean a fine of ten thousand dollars. After the announcement of Washington in 2010 seeking to prosecute Americans around the world to pay their taxes to the American wardrobe, and start the application of the law «Vta», holders of dual citizenship has become more affected by the decision. While abandoned three thousand of Citizen American nationality last year, which is three times the number in 2012 showed the documents obtained by the «Middle East» abandon 600 American nationality between May and July just past, and according to American sources for « Middle East »that it is expected that the number of American citizenship abandoners to four thousand this year. In documents released by the Treasury Department last Thursday, gave up an Arab Americans carry titles such as «Maalouf» and «Captain» nationalities this summer, but did not reveal the Treasury American dual nationals from most American abandonment of their nationalities.

There is a direct impact on the Arab countries, in terms of Americans working in the Arab companies and have accounts in Arab banks, or Arabs Conveyors dual citizenship. And banking sources revealed in a number of GCC countries for a number of banks to start procedures to detect data from customers' accounts or the Americans who hold American citizenship, in addition to their original nationality, and that the application of «Vta». And headed for banks in Saudi Arabia in the numbers of some of the actions of the people who hold American citizenship, or who hold dual nationality including one American citizen from acquiring various forms, including those born in the United States and carry a passport American, where presumably people who fall under this situation to disclose about their financial situation.

The sources said that the Saudi Arabian Monetary Agency (SAMA) called on the banks to the importance of disclosure from applies to them that law for their financial and legal if they hold American citizenship, at the time, which is expected to be a stage other binding on the disclosure of the same person, while missing a lot of those born in the United States to know if conditions apply to them or not, and therefore they should review their situation so as not to be subjected to difficulties in the future.

He preferred Albuainain Saudi economist said the decision, which was issued in the United States has become a binding decision for those who hold American citizenship, at a time which carries a picture of the Convention, it must be an American citizen to disclose its financial position, with the discovery of the United States government about the existence of tax evasion large who hold dual citizenship through bank accounts abroad, and thus became those States are required to disclose those accounts.

He Albuainain told «Middle East» that the process of tax evasion is no longer affecting the American citizen only, but may reach their influence to banks that hide information that was supposed to be disclosed, has exposed some of the banks that hide that information to American sanctions.

He continued: «I went now banks in Saudi Arabia because there is a disclosure of those who hold American citizenship for their financial and legal, but the range includes all of proves that his birth registered in the United States, and benefited from it carry a passport American, or to prove the contrary; he did not American gets a passport to get out of this circle of law ».

The law aims primarily to prosecute a campaign of American citizenship or drive right of residence in America, living outside of America does not pay taxes, or who do not provide acknowledgments required annual disclosure of their income and their accounts of Finance, which is the duty of every American, or holder of the right of residence in America, whether living in America or abroad.

Returning to the Saudi economic expert, stressed that after the disclosure process will be binding, through documents provided by Mtaamilo banks for banking operations, showing nationality or place of birth, which puts a person under the law «Vta».

This trend comes from the Saudi Arabian Monetary Agency in order to protect the banks in Saudi Arabia from any future difficulties with the American government, such as imposing sanctions or otherwise, especially as the American government imposes sanctions on banks outside its scope, as banks in Europe or Asia.

Lebanon was one of the first Arab countries to deal with the Treasury Department to reach an agreement regulating the application of the new law. Since the middle of this year, completed the readiness of all banks in Lebanon and embarked on a commitment to the law on combating tax evasion for Americans outside their country. It was learned that about a hundred banking institution, financial and insurance agreements concluded directly with the competent department at the Ministry of the Treasury, for the application of the instructions contained in the law. There were the names of Lebanese institutions within the list of institutions that have expressed willingness to comply with, and issued by the IRS of America.

The head of the Banking Association, Dr. Francois Bassil that «Lebanese banks began to apply the law to comply with the American tax». He said: «We are committed to all international resolutions, because of globalization compel us to abide by all international laws issued».

According to the president of the International Union of Arab Bankers Dr. Joseph Tarabay «has raised Act (Vta) ire and suspicion of officials in the banks and financial institutions in several countries, European and Asian, Arab, and considered that the implementation of the law may be costly in financial terms, in addition to the provisions of this law violate banking secrecy in force in many countries. This law also raised several questions about the possibility of its application, especially in light of the lack of clarity of its provisions in full, and the shortage of human resources at some banks and institutions concerned. In addition, the high cost required for the application of the provisions of the law, both institutions decided to abide by it or not ». And finds that «regardless of the goals that the law seeks to achieve, it poses major challenges and real difficulties for financial institutions and Arab governments, as they face the challenges of intertwined financial institutions, including structural and regulatory and legal, commercial and financial. And you need a lot of Arab financial institutions, especially those engaged in the activities of regional and international, to make changes to their systems and mechanisms to be able to apply the new law, in addition to government agencies, private authorities supervising the financial sector and the tax authorities, is facing challenges in terms of respect for the obligations imposed by the laws or international conventions ».

Explains banking expert Ali Badran told «Middle East» that Lebanese banks began to complete preparations immediately notified a notice from the central bank, late last year, the need to take action all within the deadlines in the law of tax compliance for the accounts of foreign, and regulatory texts and memos related to it, in order to hedge of the results that may be reflected on the relations with correspondents in the United States, or adherents reporters outside the provisions of the Act when it starts to work.

The little notice that «to avoid what might be exposed to financial and banking sector risks of reputation, and in order to preserve the supreme national interest, particularly on the safety and stability of banking, ask the banks and financial institutions, financial intermediaries and investment bodies collective operating in Lebanon, to take all appropriate action to the light of the provisions of the Act ».

Arab banks and started online registration site on the internal management of American imports, by the end of 2013, to be implemented starting from July 2014 the past. He was on every bank responsibility to identify the American taxpayer from among its customers, and must verify new and existing customers with great accuracy, to make sure there is a link or index of the United States makes them subject to the law and taxpayers to pay the tax, and thus provide information about their accounts, and permit them to the IRS America.

And financial institutions chose to join and register with the IRS, every single bank, and the support and support for the process of law enforcement, in terms of issuing circulars own, which obliges banks and regulate the process of the application of this law.

A source at a foreign bank in Jordan «Middle East» that starting from the beginning of July, I decided Jordanian banks to apply the Convention and all the data and bonds to all its customers, to prevent any future fines on banks. The same thing for Europe, which has agreements to prevent duplication of payment of taxes with the United States. He explained an official from the British tax «Middle East» that the United Kingdom has negotiated with the United States with the support of the European Commission, and with France, Germany, Italy and Spain to prevent tax evasion, on the one hand, and help financial institutions, especially that the decision came at a time of still banks seeking to recovery from the global financial crisis. The official, who requested anonymity that American law «puts a great burden on British companies to identify American taxpayers».

And the use of the dollar alone allowed the American authorities that have a right to express an opinion and to impose a record fine on the bank, which angered the French authorities. The last vote was former Prime Minister Michel Rocard, who denounced «exceeded the authority», in an article published in the newspaper «Le Monde», last month, in which he criticized the United States for having a kind of «occupation» economic based on the principle extend the application of its standards beyond national borders.

Since the tax law work for foreign accounts (Vta) are entitled to the United States claim tens of thousands of banks with detailed information on the accounts of their nationals abroad. The campaign to combat tax evasion endorsed by many countries, but they are also exposed to criticism for their tendency unilateral.

While laws began to be applied, there are vigorous efforts around the world to confront the American decision, the protests through the means of social communication, such as «Twitter», to sue governments to cooperate with Washington. In Canada, where there are hundreds of thousands of Canadians holders of dual citizenship, a group of them filed a lawsuit in court against the Canadian government for approval of the application of American law, which means a breach privacy laws among its citizens. And saw the CEO of «Euro Pacific» Finance Bert Schiff that the United States was not impressed closest allies since the start of the application in the first of July last year. The Schiff in an opinion article published on its own, the day before yesterday, that «because of the importance of international financial transactions based on the dollar, with the American authorities the ability to impose any conditions you want on everybody», warning of the consequences for Americans living outside the country, who are facing difficulties in recruitment or even open accounts in foreign banks.

It is expected to increase by protests on American law in the coming period, especially as the United States refuses to grant the same privileges other countries to see the details of those who reside in the United States and holds another nationality.

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