More Unofficial Capital Controls In The US: PFIC Rules…”the politicians have more wealth at their disposal to plunder.”
by Tyler Durden
ZeroHedge.com
04/02/2015
It ranks at the very top of potential tax nightmares, especially if you invest internationally. This nightmare could become a reality if you happen to invest in what the IRS deems a Passive Foreign Investment Company (PFIC), which are taxed at exorbitant rates and have highly complex reporting rules. Most foreign mutual funds are PFICs, as are certain foreign stocks. PFIC rules amount to unofficial restrictions on investing in certain foreign assets and are yet another indicator of the disturbing trend of creeping capital controls in the US. Capital controls are used by many countries and come in all sorts of shapes, sizes, and labels. The purpose, however, is always the same: to restrict and control the free flow of money into and out of a country so that the politicians have more wealth at their disposal to plunder.
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