Showing posts from October, 2013

Caribbean Medical School Directors Convicted

Another UBS U.S. Depositor Convicted (10/25/13)

DOJ announces, here, that Dr. Patricia Lynn Hough has been convicted
convicted today by a jury in Fort Myers, Fla., of conspiring to defraud the Internal Revenue Service (IRS) by concealing millions of dollars in assets and income in offshore bank accounts at UBS and other foreign banks, and of filing false individual income tax returns which failed to report the existence of those foreign accounts or the income earned in those accounts."  Key Facts:

Defendant:  Dr. Patricia Lynn Hough
Counts of Conviction:  Conspiracy (1); Tax Perjury (4)
Maximum Sentence on Counts of Conviction:  204 months
Bank:  UBS
Entities:  Yes
Court:  MD FL
Judge:  John E. Steele (Wikipedia entry here)

Key excerpts from the press release are:
According to court documents and court proceedings, Hough owned two Caribbean-based medical schools – The Saba University School of Medicine located in Saba, Netherlands Antilles, and The Medical University of the Americas located…

Battling for Influence in Asia

I have always maintained that FATCA is but the tip of a very large iceberg.  Recently, I wrote about the 2007 to 2010 period where rich countries saw the ratio of their gross sovereign debt to GDP spike from 74% to 101% on average.  British public debt jumped from just 44% of GDP to 79%, while US debt leapt from 66% of GDP to 98%.  Furthermore, thanks to weak profits and higher unemployment, the biggest drag on public finances has come from lower tax receipts.  FATCA therefore unfairly targets individuals when everyone knows that the real targets are corporations – particularly stateless ones.
At the same time, I have also invited thinkers to go even deeper.  Forget politicians who play for the cameras rather than for the good of the citizens they represent.  Look at the currency war being waged.  CNBC published a story on February 14th this year entitled ‘Is the Dollar Dying? Why US Currency Is in Danger’.  Many of us believe that the one of the key pillars of the US economy is the …

The Truth Behind FATCA

The Foreign Account Tax Compliance Act (FATCA) is part of the effort by the US government to prevent money laundering, and reduce tax evasion.  It has implications for (1) Americans residing outside of the US, (2) for financial institutions outside of the US (FFIs) with American clients and for (3) non-American businesses with American clients.  It is already being phased in so its effects are already being experienced.
FATCA was originally intended to recover part of the estimated $100bn a year in unpaid taxes on US citizens' assets overseas.  Unlike other countries, Americans are taxed not only as residents of the US but also as citizens, wherever they live.  Unfortunately the law of unintended consequences means that ordinary people are being dragged into an expensive and time-consuming form-filling nightmare.  And for some, it's become too much with the press reporting increases in citizenship renunciations.
Some individual tax payers face annual compliance costs of betwee…