Despite an excellent credit rating and flawless company reputation, the bank is not advancing funds. The reason: the bank is not prepared to comply with FATCA rules. "We are already seeing problems like this today when Swiss banks are involved. They are expected to increase with other financial institutions in the near future as well," warns Oliver Biernat, auditor and specialised consultant for international tax law at the Benefitax accounting firm in Frankfurt. "FATCA applies whenever US citizens or German companies in which US citizens hold shares want to open an account with or apply for a loan from a German bank."
Dual Citizens - Filing obligations of United States Citizens Residing Outside of U.S. and Dual Citizens
By Steven A. Braun and Reena Prabhakar, Drucker & Scaccetti, P.C.
Recent publicity regarding the efforts of the United States tax authorities to crack down on U.S. persons with undisclosed foreign bank accounts has caused great concern for U.S. citizens who reside outside the U.S. or are dual citizens of both U.S. and another country. They should now be aware of the fact that they are required to file tax returns and disclose certain information that could be subject to substantial penalties, in many cases.
Economic growth has been shifting towards new markets over the past number of years. As a result, 83 of the developing and emerging countries have grown at least twice as fast as the industrial states during the past decade, and are already showing high incomes. The result is a shift of the global wealth from west to east and from north to south. And although the middle-class segment is also growing considerably in these emerging countries, problems are still arising that could pose a hazard to stability unless countermeasures are taken by the governments.
Wealth tax 2011
Only taxpayers possessing assets over M € 1.3 have an obligation to declare and to pay Wealth Tax (on September 30th, 2011). Wealth tax 2012: As from 2012, a new tax threshold at two levels is established, applicable from the first euro:
- 0.25 % for assets between M € l.3 and M€3
- 0.5 % abov
By Prof. Robert Anthony, Anthony & Cie
On April 12th the French government announced new changes to the wealth tax which are expected to be adopted by the Parliament by mid July at the latest.