In This Issue...
HIRE Act, Part 3: How Will Banks Worldwide Respond?
by Joel Nagel, Esq.
Editor's Note: This month, international business attorney Joel Nagel explains the impact of a new tax law on banks worldwide -- and how their response could affect you and your finances.FATCA, or the Foreign Account Tax Compliance Act, comprises sections 1471 – 1474 of the U.S. Internal Revenue Code (IRC). The code sections were passed into law in March of 2010 as part of H.R. 2847, a job creation bill known as the HIRE Act. The law attempts to ensure that U.S. persons don't move money abroad without paying any taxes owed on it to the U.S. government.
International Banks in Belize
by Peter Zipper
Belize is a tiny Caribbean nation that has been quietly transforming itself into an international banking center, offering clients around the world a level of privacy and services once associated exclusively with major European banking centers.The country itself has many advantages as a banking and business center for North Americans. Belize the only English speaking country in Central America and is located close to North America, with flights from major international airports that provide easy access to clients and advisers alike.
"The surest way to avoid and minimize the difficulty for individual US persons is to open your foreign bank accounts before the [HIRE Act] takes effect on January 1, 2013, and move funds that you want to use to buy international assets out of the U.S. before then." International Business Attorney Joel Nagel, in May's Hemispheres newsletter.In January 2013, the U.S. government will radically change the way it treats international bank transfers by U.S. persons worldwide ... and it's drafting banks worldwide as its enforcement agents.
Part two of the 15 Critical “Must Ask” Questions when Buying Real Estate Overseas will focus on “Buying Community.” While this seems like a no-brainer to most folks from North America, it really goes to the heart of what “big brother” does for us in North America and just how much we unconsciously depend on him.
Sorry if I offended anyone there, but please be honest and tell me that if you bought a piece of property in Latin America, you would think of asking what could prevent your neighbor from starting a pig farm. Really! Would you think to ask to see a copy of the local zoning laws? You would likely be surprised to find there are none, and that in fact, your neighbors can legally build anything they want next door, as far as the government is concerned. This is real freedom, isn’t it?
The pain of filing U.S. income taxes for many individuals is over, but the “sting” of writing the check to the IRS still lingers. This is the time of the year to evaluate not only last year’s tax liabilities, but to focus on strategies to reduce tax liabilities for 2011 and beyond.One strategy to consider is an Offshore International Private Placement Life Insurance policy. This article will focus on a key advantage -- especially in light of the current worldwide economic environment -- no taxes! Experts are concerned about how the U.S. government will pay for all the massive real estate and corporate bailouts over the last several years. Recent discussions include a combination of reducing government spending and increasing taxes, nothing really that new. The possibility of increased taxation will be a significant future concern.