How Do You Get A Second Passport?

OK, I'm curious. How can you be prevented from shedding U.S. citizenship? Or
citizenship from any other country?


<< Subject: Re: How Do You Get A Second Passport?
From: mnc@admin.u.nu (Miguel Cruz) >>


<< Earl <neptune@wt.net> wrote:
> But if you keep US citizenship you have to file 1040 and pay
> taxes to the US even if earned elsewhere.

It's become quite difficult to shed US citizenship. The government presumes
that you are doing to avoid taxes.

miguel
-- >>

Cruising Chrissy <doublebreasted@m> wrote in
news:iodl3050k8rijhci1abu9ej1mcpt5idcsi@:

> On 23 Feb 2004 18:32:57 -0600, Earl <neptune@wt.net> wrote:
>
>>If you are Jewish -- visit Israel
>>If Irish descent -- visit Eire
>>If Mexican descent -- visit Mexico.
>>
>>If you have lots of money you can be a diplomat from
>>Belise.and still live in your Florida home.
>
> Is this Belize "opportunity" as valid as Belize wishes to
> report? Is
> it correct that there are no longer any safe havens for tax
> dodgers in particular?


I was giving a cutting comment on the stunt a man by the name of
Dart (Dart Industries, Dart Pharmacy) carried out.He made some
substantial investments in Belize with his petty cash -- ended
up owning the government for all practical effects (along with a
banker). So the government gave him citizenship and assigned him
the post of Ambassador for Economic Development based in Florida
at his mansion along with a diplomatic passport. Dart then
droped US cit. Obviously this was unpopular with the IRS, and
became one of the matches that ignited the "once a US cit; alway
a US taxpayer" interpretations.



As for safe haven for tax dodgers.
You do realize that Europe considers the US to be a tax haven.

We do not tax (bond) investments by foreigners, so the interest
earned here is US tax free. But Europe taxes income in the
country generated so US investments slide past their tax system.
There has been a big diplomatic effort to have us place taxes on
foreign investments at a rate comparable to the high taxes in
Europe. Bankers and Treasury are against it because they will
lose all those deposits.

It is always possible to structure your income in ways to avoid
taxes -- that is what municipal bonds are for!!. Likewise
foreign shelters are possible. The problem comes when the use of
shelters becomes wholesale and is used by people outside the top
1%. Congress and IRS then play fast and loose with the laws to
plug the potential fiscal hemorage. So one loophole is plugged,
but others quietly opened for friends and contributors

Every transaction has its risks and costs. You have been paying
a significat cost that you do not even realize. Your assets are
dollar denominated -- there has been a moderately quiet 30%
devaluation of the dollar in the last year, and probably another
20% for this year. Not nearly spectacular as Weimar Germany, but
significant never the less. Many folks prefer to hedge their
risks with investments/assets outside the reach of the IRS. And
also why many financial houses in Scotland are barred by law
from some US investments -- the US government has caused the
default on numerous supposedly safe state bonds backed by the
full faith and credit of government.

Earl <neptune@wt.net> wrote:

>But if you keep US citizenship you have to file 1040 and pay
>taxes to the US even if earned elsewhere. And if you own a
>substantial fraction of a foreign company you have to pay taxes
>on the company's accrued profits even if not paid to you.

You do not necessarily have to pay US taxes, though you may well need
to file if you retain residency or domicile. A great many countries
have reciprocal tax treaties, which means that tax collected in one
country is honoured as tax for the non-resident country. Generally,
for a tax treaty country, as a non-resident you will only need to pay
on income 'landed' in the country in question. It's a complicated
business and a good investment/tax advisor can clarify completely.
Generally, the system is intended to work for people who legitimately
live/work in other countries, and are not shirking tax but are paying
their share in whatever country they are in. Such people shouldn't
pay twice.

--
Ken Tough

Cruising Chrissy <doublebreasted@m> wrote in
news:l33n30hid4fhp2vgsk8ro91q9edhagfpa7@:

> On 23 Feb 2004 21:47:23 -0600, Earl <neptune@wt.net> wrote:
>
>
> Oh yes, I know personally about this one. On the other hand,
> we are dealing under the table with the Chinese (and others)
> to assist them in moving funds around so that they can buy
> items of potentially strategic value (read into that what
> you want); these sales would be out of the mainstream and
> taxes aren't even discussed.

The Ecomomist had a nice article on the metals trade. Turns out
that all the expansion seen in last few years has been purchases
by China, some for use some for speculation. They are now going
whole hog in buying the companies, not just the raw materials.

>
>
>>Many folks prefer to hedge their risks with
>>investments/assets outside the reach of the IRS.
>
> Paintings, collectibles, art...all that appreciates without
> an tax on those values.
>
>

I think you need to question your tax advisor carefully.
Gains on collectables, etc are taxed at capital gains rates upon
sale. No tax on unappreciated gains but when you sell IRS take a
chunk -- including the phoney appreciation that comes from
inflation.