Iraq officially looking to join Foreign Account Tax Compliance Act

Iraq officially looking to join Foreign Account Tax Compliance Act
 
2/24/2015 0:00
 
BAGHDAD - Mostafa Hashemi
 
raised the issue of a study on Iraq's accession to Vta agreement "a sensation among specialists, warning of its potential privacy violation of the accounts of local banks, after discussing the Ministry of Finance this issue with the government banks and the taxes and insurance companies."
 
known "Alvta" which is an acronym for Foreign Account Tax Compliance Act as measures limiting evade US citizens from paying taxes to the government, and entered several countries in this agreement recently.
 
In this context, the economic academic said Dr. Majid Baidhani: that this law or agreement came to the rescue of US Treasury debt-laden while the Iraqi constitution permits citizen to own more than one nationality.
 
He said Baidhani told the "morning" that this system or agreement means that any umbrella of state underlined must be held accountable US person (natural and moral) on income achieved on its territory and prevent tax realized it to the United States any words more accurate to act states like collector of American taxes.
 
He said that the possibility of banks that fear dealing Law "Vta" not open accounts or granting credits to citizens a naturalized US citizen.
 
He noted that this system invented by American minds in order to save the budget crumbling of the Government and the heavily indebted, indicating that all American companies and individuals working abroad are subject to this procedure as that every country where American works (company or individual) must comply with the application of this system it or Ibt.uan challenges officially joining this law banking expert Essam Mohamed said: Is the US government will prosecute foreign companies operating on its territory and tax shift taxes to their original homelands to companies and individuals? The answer is of course not, and as confirmed by his personal representative of the US Treasury in one of the meetings, which included representatives from some Almassarv.utaba told the "morning": a country like Iraq permits dual nationality, how can the bank verifies that the customer does not hold US citizenship ? And if so, how the banks to make sure the amount of earned income? And Is it possible to become banks (eyes) US Treasury? Of course this is something unreasonable.
 
He went to the importance of resolving this overlap in case it is decided to join the formal because it will cause the movement of investment in the country, adding that if he was an American individual to Iraq without capital and has only an investment idea and worked on his project with Iraqis inside the country and use the materials Iraqi and imported Iraqi funds and check his personal income .. on what basis are calculated by the tax and turned to the United States?
 
and the importance of accountable before taxes Iraqi interest and determine the responsibility of duplication calculated by the tax in this case, considering that Iraq is a country free from double taxation.
 
It is worth mentioning that Finance Minister Hoshyar Zebari said he had discussed with the bank managers and insurance companies and the Tax Authority in the Ministry of Finance and Commercial Director General of the Iraqi bank tax compliance with the United States of America Agreement (Vta).
 
According to a ministry statement earlier this month that he has a discussion of tax compliance with the United States of America Agreement ( Vta) concluded between the United States and most countries and related tax compliance calculations foreign to provide tax information on people who hold US citizenship.
 
and due to the central bank to submit draft legislation between Iraq and the United States on tax compliance with US law (Vta) to lift to the House of Representatives in the coming period to decide before the fifteenth of September 2015 according to the report by the statement.
 
The economic American sources reported that law enforcement will not pose a threat to the Arab financial institutions, as the rejection of the financial institutions of the law will lead them to the local contraction, where you will lose the ability to deal with foreign counterparts, or even with local financial institutions that comply with the law.
 
Some states have decided to make the deal banks with US IRS directly, what makes their financial institutions subject to "Alvta", or face sanctions by the United States will be taken against banks States that do not reveal private accounts Americans have deduct 30 percent of the accounts of US banks, and the last was prevented from dealing with it.
 
It is noteworthy that the US Tax Compliance Act "Vta" passed by the US Congress in March 2010, as part of the recruitment incentives law to restore the run rates employment. And be under this law to taxpayers who own financial assets outside the United States, to submit a report statements of those assets for the benefit of US domestic revenue.
 
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Finance Minister receives a delegation from the US Treasury Department Monday February 23, 2015

Search Finance Minister Hoshyar Zebari evening February 23, 2015, with the Assistant Deputy Minister of the US Treasury, Mr. Andy Bockal relations and the prospects of bilateral cooperation between the two countries.

During the meeting, which was attended by US Ambassador Stuart Jones Adeddamn issues of common concern, and capacity building of the Ministry of Finance.

There was an exchange of views on the challenges facing the Iraqi economy and ways to overcome the current financial crisis and stimulate economic growth.

 

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gee, wonder what this is all about? could it be that we are going to have to be tax compliant when it happens.

Sounds to me like the tax law will have to be done before it can RV.

No surprise here...but I'm not a tax expert, only pay a ton of it...how would that work as far as paying tax on a currency exchange!!! I'm confused as to how if you were to go to exchange it, how does the person handling it know how much to charge, is this Capital gains or income or.......

zimi31 wrote:No surprise here...but I'm not a tax expert, only pay a ton of it...how would that work as far as paying tax on a currency exchange!!! I'm confused as to how if you were to go to exchange it, how does the person handling it know how much to charge, is this Capital gains or income or.......

Person exchanging it want handle that but will make records. It will be IMHO up to us as individuals to report the earnings like anything else.

Neno wrote:

zimi31 wrote:No surprise here...but I'm not a tax expert, only pay a ton of it...how would that work as far as paying tax on a currency exchange!!! I'm confused as to how if you were to go to exchange it, how does the person handling it know how much to charge, is this Capital gains or income or.......

Person exchanging it want handle that but will make records. It will be IMHO up to us as individuals to report the earnings like anything else.

OK Neno, so you think they will trust us to do that? Do you know if there was ever any information as to what this will be classified as income or capital gains?

i personally don't see this as anything to do with a revalue ; first this is iraq's decision and i find it mighty hard to believe that the u.s. is saying ok, you have to do this or we will not allow you to re-value. secondly, anytime you make a large financial transaction there is immediately a paper trail. and you can bet uncle sam is going to be right up your behind when one day you are broke and the next day you suddenly have 11 million in the bank. how are you going to hide a large cash windfall without anybody knowing it? tax laws are in place and have been all along, even sweden recently agreed to stop allowing foreigners to hide their money in their banks.so , no i don't believe this is the hold up for a re-value.

No tax on capital gains in Canada, only on interest made after you cash in