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Is America a loophole in CRS? Some people say that the Unite
Guide reading:India launched an income declaration program in 2016 with 65000 taxpayers disclosing previously undeclared assets of $11 billion and collecting a total of $6 billion in tax revenue. France launched a voluntary disclosure program in September 201
Seven years ago, the United States took the lead in solving a difficult problem faced by governments around the world: tax avoidance.
 
Is America a loophole in CRS? Some people say that the United States will become the next tax haven...
 
Every year, $2.5 trillion in income tax, which can be used to improve poverty and upgrade infrastructure, is a tax that many people want to avoid spending.
 
The "safe haven", "shell companies" and "secret accounts" are their "secret weapons" for tax avoidance. However, tax havens are not good titles, and countries are afraid to avoid them.
 
In 2010, the United States passed the Overseas Accounts Tax Compliance Act (FATCA), which requires foreign financial institutions to report to the IRS the identity and assets of potential U.S. taxpayers, which more than 100 countries, including Bermuda and the Cayman Islands, have chosen to comply with.
 
FATCA is nominally bilateral swap, but in fact it is more appropriate to call it "pseudo bilateral swap".
 
When the United States unilaterally acquires information, the contracting countries receive the information returned by the United States under harsh conditions. Not only does the information security and data confidentiality meet the standards of the United States Government, but also they do not support the exchange of other information except deposit account information for the time being. Therefore, the contracting countries can only receive very limited information from the United States.
 
Is America a loophole in CRS? Some people say that the United States will become the next tax haven...
 
Similar to FATCA is CRS (Common Declaration Criteria), where more than 100 governments control the state of national assets by "exchanging information among themselves". Unlike FATCA, CRS is a "true bilateral swap". More than 100 signatories exchange information automatically on the basis of full reciprocity mode. The procedure is simplified and efficient, which makes the overseas assets of non-tax residents in these countries impossible to hide.
 
Brazil has disclosed nearly 170 billion reals of undeclared taxable overseas income and nearly 47 billion dollars in total taxes, interest and fines.
 
Australia exchanged information more than 400 times with 10 countries in 2013, involving 326 million euros in assets.
 
India launched an income declaration program in 2016, with 65,000 taxpayers disclosing previously undeclared assets of $11 billion and collecting a total of $6 billion in tax revenue.
 
France launched a voluntary disclosure program, in September 2017, more than 50,000 taxpayers voluntarily disclosed 32 billion hidden assets and restored tax revenue of 32 billion euros.