Nations Want Bank Info on Nationals Anywhere in the World. What For? Will it Include Gold?
Julian D. W. Phillips
Wednesday, 29 May 2013
As you heard in the European Union conference last weekend, there is a demand from these governments that there be a sharing of banking information. The U.S. is following a similar line as we saw with Google and Apple answering questions on Capitol Hill. While there is a great deal of ‘huffing and puffing’ on the subject of Tax Avoidance in the developed world, the pressure is mainly being turned up on Tax Evaders. This is reasonable because they are breaking the laws of their country.
But the pressure is now spreading to Tax Avoiders, those people and companies that organise their affairs so that they are not liable for tax. This is not reasonable because people who are obeying tax laws and paying taxes due are not breaking the law. If governments want to change that then all they have to do is to change their tax laws to ensure they get taxes paid. In this age of globalism, it is everybody’s right and from a corporate viewpoint, his duty, to ensure his global income resides where it suffers the least tax. But governments are not happy with this, implying somehow that a person or company whose origin is in a particular tax jurisdiction pays the tax in that country no matter where his income accrues. The U.S. does tax its citizens’ income no matter where they live. The only way they can remove their tax liability is by changing their Passports. But other nations, reasonably, expect their citizens and foreigners earning within their jurisdiction to pay tax on only that income or income remitted into that jurisdiction.
First Step: Get the Information!