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Old 05-22-2014, 11:30 AM   #21
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Residents, but not citizens, of a country being taxed by the country they are residing in for income earned outside that country? I didn't know this happened, what countries enforce this? I thought for the vast majority of countries (excluding the US), taxes are paid in the country of earnings.
I can only speak for certain of the US and UK in which I have been a tax resident but it does seem perfectly reasonable to me. If I am tax resident in a country and receiving all the benefits and subsidies that country's taxes provide, but all my income comes from another country in which I am not tax resident, then I would be having a "free ride" in my country of residence.

The vast majority of my income (99%) comes from the USA in the form of pensions and investments. If I become resident in the UK, even if I wasn't a UK citizen, I will receive subsidized health care, public transport, libraries, streets, roads etc. It would not be reasonable in my opinion to receive all these benefits while not paying taxes on 99% of my income just because it arises in a different country.
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Old 07-03-2014, 04:18 PM   #22
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I had an uncle in Scotland who had a very successful business. Some of it was cash based. He and his wife would drive to Switzerland and deposit cash money in their account. It was essentially undeclared UK business income. And the investment gains were also UK 'tax free'. No one was any the wiser. He has since passed but I can just imagine the UK tax that he avoided.
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Old 07-05-2014, 07:41 PM   #23
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Originally Posted by dvalley View Post
I was thinking to myself how everyone just wants a cut of your money these days; fees, fines, taxes, cost of repairs etc where does it end?

It doesn't end. There will always be another government bureaucrat with his or her hand out, expecting you to pay in order to ultimately offset the costs of his or her job. The rich can afford (and often avoid) such fines, while the poor cannot. Now, this isn't fair per se, but people do have to take personal responsibility for their actions. Avoidance of the consequences does not mean they go away. Rather, due to intentional neglect such consequences often multiply into a disproportionate punishment.



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Old 07-05-2014, 08:16 PM   #24
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I had an uncle in Scotland who had a very successful business. Some of it was cash based. He and his wife would drive to Switzerland and deposit cash money in their account.
Hmm...looks like the Brits beat ol' Elon to the punch:
Elon Musk to make James Bond submarine car a reality - Oct. 17, 2013
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Old 07-07-2014, 09:05 AM   #25
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Which then leads to people renouncing their US citizenship as noted in a Forbes article earlier this year...up 221%.
Probably the numbers are more relevant than the percentage increase.

2011 1,781
2012 --932
2013 2,999

So less than one person per 100,000. Most of them are probably "accidental citizens" who never had any intention of living in the US, but are finally prompted to formally renounce citizenship to make their financial lives simpler.
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Old 07-07-2014, 03:38 PM   #26
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Actually it is quite simple, the offshore banks did not send 1099s to folks or to the IRS on the accounts. Then folks operated on what the IRS does not know won't hurt the irs and did not report it. Basically its like did you report your jury pay, since no w-2 is generated since the amounts are small. Now FATCHA says that foreign banks if they want to use US financial services have to report the interest amounts (and dividends etc). Of course it could be made simpler if each country said that banks should report all interest to that country with a country of citizenship attached, and then the various national revenue agencies exchanged data.
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Old 07-13-2014, 10:54 AM   #27
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Yet, no one at Credit Suisse goes to jail or loses their job. Nor does anyone's compensation get clawed back! That rankles me no end.
And a whistle-blower was paid about $100 million!
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Old 07-13-2014, 11:34 AM   #28
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Indeed, as a bureaucrat myself, I used to amuse myself at tax time, thinking how I was helping to pay my own salary and benefits with the taxes taken out of them.

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There will always be another government bureaucrat with his or her hand out, expecting you to pay in order to ultimately offset the costs of his or her job.
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