An offshore bank is a bank located outside the country of residence of the depositor, typically in a country that provides greater privacy and little or no taxation. Offshore banking is often linked to tax havens for criminals, money launderers and tax cheats. There is an estimated $21 to $32 trillion held in these accounts. Advocates say that if this estimate is correct, our nationâ€™s income inequality is much worse than previously believed. Offshore tax evasion is a global problem and has been called the biggest theft among societies and neighbor states ever committed. It is estimated our Treasury loses at least $280 billion a year in tax revenue from wealthy Americans and companies hiding money in offshore banks. It is difficult to tax the money in these accounts. Although the IRS requires taxpayers to declare offshore bank accounts, many do not. Most offshore banks, protected by secrecy rules, have no legal obligation to report these accounts either. There have been increased efforts to regulate international finance and offshore banks since 9/11, with some success. In 2009, our IRS and Justice Departments fined the Union Bank of Switzerland $780 billion for illegally aiding 17,000 American tax cheats. UBS was required to reveal the names of 4,500 American depositors suspected of evading taxes. The IRS has collected more than $5.5 billion from Americans offered incentives to voluntarily disclose offshore accounts. These incentives include reducing the amount of taxes or penalties owed and amnesty from tax-evasion prosecution.
S.268 – CUT Loopholes Act
H.R.1554 – Stop Tax Haven Abuse Act
I oppose reforming current offshore bank policy and wish to defeat S. 268 & H.R.1554
I support efforts to tax offshore bank accounts and treating certain foreign corporations managed and controlled primarily in the United States as domestic corporations for tax purposes; requiring tax withholding agents and financial institutions to report certain information about beneficial owners of foreign-owned financial accounts; treating swap payments sent offshore as taxable U.S. source income; allow the use of tax return information to evaluate foreign financial account reports; increase penalties for promoting abusive tax shelters and for aiding and abetting the understatement of tax liability, and wish to pass S. 268 & H.R.1554