Iraq officially looking to join Foreign Account Tax Compliance Act

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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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zimi31 wrote:

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?

Not sure but wsyoutnow told me the other day Obama is working on 50%, now thow he said 29.3% was the capital gains. I really don't know or care, just saying the last I heard.

fonz1951 wrote: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.

I don't think they are concerned about us exchanging the currency here in US. IRS main concern is hiding the money offshore . Since we hold Iraq currency already...going over and exchanginng ...without reporting from iraqi authorities ...would save a lot in taxes ....JMO

Neno wrote:

zimi31 wrote:

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?

Not sure but wsyoutnow told me the other day Obama is working on 50%, now thow he said 29.3% was the capital gains. I really don't know or care, just saying the last I heard.

It really is something. At one time we were thinking long or short term capital gains...and now to think it could end up possibly at 50% then the state, New York highest in everything. I know I sound like a pig for wanting to hang on to as much as I can but I think I could better decide where my money should go. After 10 years investing my money that was earned and taxes paid makes me a little nuts to think that these morons running this country could take so much just to throw it into a back hole for all their giveaways. Oh well we'll see. Thanks for the info.

dennisalexander1 wrote:

fonz1951 wrote: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.

I don't think they are concerned about us exchanging the currency here in US. IRS main concern is hiding the money offshore . Since we hold Iraq currency already...going over and exchanginng ...without reporting from iraqi authorities ...would save a lot in taxes ....JMO

the post i made here was in response to one that csd made saying that in her or his opinion this had to happen before a re-value. i guess i went too far when i got into the tax part of it. also, i don't necessarily care about the tax part of it because, if it re-value's at anything above 1for1 and the tax on it is 50% i still am 2.5 million richer.no i don't particularly like the prospect that my government is or can legally steal half of it, but i'm not going to worry about it.

fonz1951 wrote:

dennisalexander1 wrote:

fonz1951 wrote: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.

I don't think they are concerned about us exchanging the currency here in US. IRS main concern is hiding the money offshore . Since we hold Iraq currency already...going over and exchanginng ...without reporting from iraqi authorities ...would save a lot in taxes ....JMO

the post i made here was in response to one that csd made saying that in her or his opinion this had to happen before a re-value. i guess i went too far when i got into the tax part of it. also, i don't necessarily care about the tax part of it because, if it re-value's at anything above 1for1 and the tax on it is 50% i still am 2.5 million richer.no i don't particularly like the prospect that my government is or can legally steal half of it, but i'm not going to worry about it.

fonz, I suppose the law could be retroactive. I didn't think about that earlier. I for one don't want to pay 50%. Oh I'm a female.

No matter what country everyone knows you must report capital gains! Oligations are oligations They will get there money no matter what you do andi twill be retroactive!

Having to pay the taxman  millions in tax is going to be a pleasure!

Screwball wrote:Having to pay the taxman  millions in tax is going to be a pleasure!

I wouldn't go as far as saying it will be a pleasure but a pleasure it will be....lol