MBMG International Ltd.
Nominated for the Lorenzo Natali Prize
New help for expat Americans
in Asia as U.S. tax noose tightens
If you are American then you will probably have had the dubious pleasure to
having to deal with the Internal Revenue Service (IRS). This is the U.S.
government agency responsible for tax collection and tax law enforcement
and, like the FBI, “always gets its man” or woman should they decide to take
the tax dodger’s route.
America has finally discovered that it is broke and needs all the money it
can get, therefore, it is after American expats as some of them have been an
untapped source of income for many years.
The plethora of paperwork you now need to fill in simple tax returns is
frightening and it is almost possible to blame America for the reduction in
the size of the Amazonian Rainforest by the fact that the IRS insists on
having these forms printed and completed by Joe Public.
It is now vital that Americans speak to someone who actually knows what they
are talking about. You need to find a company which has updated its new
suite of advisory and transactional services to ensure compliant tax
reporting and legitimate minimization of tax liabilities for American
companies and expats in Asia.
The increase of FBAR (Foreign Bank Account Report) requirements of overseas
assets by the ‘shadow FBAR’ (S.8938) provisions came into effect this year.
The new Foreign Account Tax Compliance Act (FATCA) will turn the screw even
further on U.S. expats by obliging financial institutions to report foreign
assets and income of individuals and corporations from 2013 onwards.
To counter the legislation, you need to find a company which can help U.S.
institutions, corporations and individuals minimize exposure, yet remain
fully compliant with U.S. laws and reporting obligations. Preferably, you
need a company in the same time-zone and is capable of further expanding its
U.S. advisory team and capabilities, as and when the need arises, because
the American IRS is going to keep on coming after you.
“Uncle Sam, in the guise of the IRS, is after high net worth American
individuals overseas,” says Paul Gambles, Chief Investment Officer at MBMG
Asset Management. “It’s all because the Treasury is desperately trying to
balance its budget.”
The administration is following the thinking of Warren Buffett who has
advocated a minimum tax rate of 30% for individuals earning more than a
million dollars a year.
The U.S. Treasury hopes these and other tax proposals such as a 20% capital
gains tax, a 55% gift tax and a general reduction of personal tax exemption,
will raise an additional US$36.7 billion a year to offset a rising budget
To avoid coming into conflict with U.S. tax authorities, international banks
such as UBS, Credit Suisse, Deutsche Bank, HSBC and HypoVereinsbank will no
longer accept private accounts of U.S. nationals.
“Tax rates seem certain to increase and non-compliant assets, gains or
income will become ever harder to hide,” says Gambles. “But tax-planning
opportunities continue to exist and are now more important than ever. Using
compliant offshore and onshore vehicles and structures, MBMG can help
overseas Americans minimize the pain.”
Gambles believes that many banks, advisors and managers are treating U.S.
nationals “like pariahs” because of fear of FATCA. “But if you do everything
right then there should be nothing to fear. So, MBMG’s doors are very much
open to all American individuals, corporations and institutions.”
For practical steps, there are a number of legitimate solutions that exist
to minimize exposure for American individuals and companies. These include
deferred variable annuities, private placement universal variable life
insurance, direct investment into offshore funds, and IRA LLCs, all of which
any decent company with full knowledge of American laws can advise upon.
“Every crisis has its opportunities,” says Gambles. “There are an enhanced
range of financial solutions which are totally legal and can save Americans
a small fortune. These will minimize immediate and ongoing tax exposure and
also develop efficient and robust longer term solutions.”
Says Gambles: “We want to help our current and future American clients sleep
easily at night by reminding them that they have access to the best advice.”
So, do not be like the shepherd in ‘Big Jake’ and wait for John Wayne to cut
you loose from the noose but get in touch with someone that actually knows
how to stop you getting hanged in the first place.
The above data and
research was compiled from sources believed to be reliable.
However, neither MBMG International Ltd nor its officers can
accept any liability for any errors or omissions in the above
article nor bear any responsibility for any losses achieved as a
result of any actions taken or not taken as a consequence of
reading the above article. For more information please contact
Graham Macdonald on [email protected]