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  1. #1
    Join Date
    Mar 2004
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    Default this is interesting!!!!

    March 27, 2010

    Disturbing new U.S. law aims to end individual foreign bank accounts

    End of freedomThanks to my good friend Paul McBride for bringing this
    latest attack against freedom to my attention. I had posted some time
    earlier this year about this potential legislation, but was not aware
    it is now the law of the land. Here is his email from Paul and a copy
    of the new law in PDF at the end. The law is aimed at foreign bank
    account holders and those sending money outside the U.S.. This could
    affect peoples ability to buy homes outside the country. It will
    certainly affect their ability to have an account offshore. What banks
    wants to deal with this?

    In answer to his question on what I think about this? It sucks!

    Sam, in all the controversy surrounding the recently passed health
    care bill in the U.S., another piece of legislation was pushed through
    Congress (and signed by the President) that will have a far reaching
    impact on anyone thinking about buying real estate or investing

    The name of the bill is the Hiring Incentives to Restore Employment
    Act (H.R. 2487) commonly known as the HIRE Act. This is the jobs
    incentive bill that was signed by the President on March 18th amid
    little fanfare.

    Relatively small by Washington standards (“just” an $18 billion
    stimulus package) the bill was drafted to provide incentives to
    employers to hire more people but contains some very disturbing
    language concerning the ownership and transference of money to any
    overseas account. The truly galling part of the bill is that it
    attempts to require “foreign financial and non-financial institutions
    to withhold 30% of payments made to such institutions by U.S.
    individuals unless such institutions agree to disclose the identity of
    such individuals and report on the bank transactions”. Think about
    this – the U.S. government is attempting to strong arm foreign
    financial and non-financial institutions (think banks and law firms)
    to either withhold 30% of the transactions in a U.S. individual’s
    account (and presumably remit this to the U.S. Treasury) or disclose
    the account details to the U.S.. The language of the bill addresses
    both bank accounts and any foreign trusts (ie- Private Interest

    But what if a foreign, sovereign country has laws against the
    disclosure of this information? Well, the bill contemplates this as
    well. Here’s the actual language from the bill:

    ‘‘(F) in any case in which any foreign law would (but
    for a waiver described in clause (i)) prevent the reporting
    of any information referred to in this subsection or subsection
    (c) with respect to any United States account maintained
    by such institution—
    ‘‘(i) to attempt to obtain a valid and effective
    waiver of such law from each holder of such account,
    ‘‘(ii) if a waiver described in clause (i) is not
    obtained from each such holder within a reasonable
    period of time, to close such account.” (my emphasis)

    In other words, under this legislation, a U.S. citizen having an
    account with a foreign institution will be required to waive the
    privacy protection afforded by local law. If they fail to do this,
    the financial or non-financial institution is required to close the

    And what information do they want. Here again is the actual language
    of the bill:

    ‘‘(1) IN GENERAL.—The agreement described in subsection
    (b) shall require the foreign financial institution to report the
    following with respect to each United States account maintained
    by such institution:
    ‘‘(A) The name, address, and TIN of each account holder
    which is a specified United States person and, in the case
    of any account holder which is a United States owned
    foreign entity, the name, address, and TIN of each substantial
    United States owner of such entity.
    ‘‘(B) The account number.
    ‘‘(C) The account balance or value (determined at such
    time and in such manner as the Secretary may provide).
    ‘‘(D) Except to the extent provided by the Secretary,
    the gross receipts and gross withdrawals or payments from
    the account (determined for such period and in such
    manner as the Secretary may provide).

    Keep in mind Sam, this is not proposed legislation. This is already law.

    There is much, much more in this bill. I’ve attached a PDF file
    containing the language of the bill. The important information can be
    seen if you scroll down to section on page 27 of the bill entitled:

    Subtitle A—Foreign Account Tax

    As we have suspected for some time, the U.S. government is closing the
    window for U.S. citizens to protect their assets by moving them
    offshore. It won’t be long before it will be punitively expensive to
    move any amount of money overseas for any purpose.

    I haven’t seen this legislation discussed anywhere on the Internet and
    I think it would be a good story for the blog. Sadly, America is
    losing its freedoms and its citizens are standing meekly by while the
    noose of government control gets tighter and tighter.

    Download HIRE Act of 3-18-10

  2. #2
    Join Date
    Jun 2006
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    Default Lawd

    It is not a "disturbing new law", it is a new law. Whether it is disturbing or not depends on the individuals affected. As with any new law, or old law for that matter, it is open
    to interpretation.
    Last edited by tflea; 04-20-2010 at 10:03 PM. Reason: daa

  3. #3
    Join Date
    Jun 2006
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    May I add, if you've been negatively affected, sorry , but it is not the "end of freedom", it is a regulation of offshore unaccountability. I don't have a problem with that law. If you've taken advantage of legal loopholes previously, more power to you. You might have a lot more at stake than most here. I might also. But I don't disagree with closing the loopholes for the fortunate.

  4. #4
    Join Date
    Feb 2008
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    It looks like tax-grab to pay a bankrupt nations' debts to me.

    Land of the Free .... lmao

  5. #5
    Join Date
    Apr 2009
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    This wouldn't effect a U.S. citizen in the least if they just open an account in a Dominicans name that they trust, if they have such a person.

  6. #6
    Join Date
    Mar 2004
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    Part of a worldwide trend. The European Union applied a Savings Directive a few years back, which resulted in a witholding tax being applied to offshore accounts in many jurisdictions
    EU Savings Directive

    and the UK has also taken steps to end offshore tax evasion
    UK committed to ending offshore tax evasion for good, minister confirms

    so, if it's any comfort, jaguarbob, you are not alone.

  7. #7
    Join Date
    Apr 2004
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    Quote Originally Posted by waytogo View Post
    This wouldn't effect a U.S. citizen in the least if they just open an account in a Dominicans name that they trust, if they have such a person.
    Not sure you would even need to do that if you have residency. Then you would open under your cedula, not passport. No tie then to US citizenship, in that case.

  8. #8
    Join Date
    Mar 2004
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    Quote Originally Posted by bienamor View Post
    Not sure you would even need to do that if you have residency. Then you would open under your cedula, not passport. No tie then to US citizenship, in that case.
    problem is,the banks want your ss number,if not they hold 30% of your money ....or close your account..
    Went to bank central to get a certificate that was expired,and had to fill out a document,which wanted info,and one was ss number no money...that is what started this...googled,and got this info...also found that 2 weeks ago,US passed another law requiring all banks worldwide to report all dollar transactions,and if not,to close all dollar accounts...big brother is coming..

  9. #9
    Join Date
    Jul 2002
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    an interesting article about this provision in the law, on this blog:

    American Thinker: The New Front in the War on Wealth

    to quote a section:

    "And per the Swiss-American Chamber of Commerce, "A lot of banks simply will not be able to do business in the US and that would cause considerable damage to the US economy."

    Not only banks, but the activities of asset-managers and securities-dealers will be affected. The administrative cost of tracking down all U.S. (citizen and non-citizen) clients and making efforts to make sure that they are tax-compliant will be enormous and impractical.

    Therefore, foreign investors viewing the overall landscape of what was once the preeminent nation for investment will not subject themselves to the machinations of the IRS and other enforcement agencies, which have been given unlimited power to broadly interpret regulatory bills passed by this Congress and signed by President Obama."

    Another job killer by Obama, basically.

  10. #10
    Join Date
    Feb 2006
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    sorry to disagree to the complaint,
    but i think it was time that the big Economy Moloch USA takes such steps, and they are still even not tied enough.
    Europe has such regulations since a while,
    i had to provide myself such infos about my own Dominican Business, local Tax number(RNC), name, amounts of money moved, receipt of Tax payments etc etc years ago, 2 of my bank accounts (both in my private name, not in my company's name, both with European Banks) been frozen in for 3 days and the European authorities requested the above mentioned details/info about me/my company/my tax payments etc.
    i provided the requested infos and on Day 3 my accounts been open again. thanks to a scanner and internet connection to provide such info quick, if relying on caribbean Mailing systems i would sure til today have no account anymore, ha ha.
    while frozen in i could still receive money on both accounts from my customers, but i could not withdraw/send/wire money from there to anywhere.
    they urgently need to close more of such loopholes for the tricky rich ones who move their illegally earned or non-tax-paid money overseas while we small and by the law running businesses pay the Taxes to get the Roads fixed on which the big shots driver with their Ferraris for free.

    who makes a living legally and pays his/her country the appropriate taxes like required by each country's laws has nothing to fear from that Law, the opposite, more people need to pay their Taxes so there's more income for the community.

    [email protected]
    Punta Cana/Cap Cana/Dominican Republic
    Mike Fisher Facebook Group on

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