U.S. Senator Rand Paul Continues To Block 5 Important Tax Treaties

On Tuesday, June 3, 2014,  we posted Paul Continues to Block Move to Ratify U.S.-Swiss Tax Treaty? which discussed that the U.S.-Switzerland tax treaty remains stuck in the Senate after Sen. Rand Paul (R-Ky.) blocked an effort to propel it forward by Senate Foreign Relations Committee Chairman Robert Menendez (D-N.J.) When a bipartisan Senate panel lambasted Swiss bank Credit Suisse for helping rich Americans evade billions in taxes, some watching the high-profile hearing couldn’t help but notice that Sen. Rand Paul sticks out like a elephant in the room.

Senator Rand Paul on Wednesday June 4, 2014 again blocked the U.S. Senate from moving toward ratifying five pending tax treaties, saying they would make it easier for foreign governments to invade the privacy of Americans.

The Kentucky libertarian, defying business interests that favor the agreements, cited concerns the treaties would allow more inter-government sharing of financial information on citizens.

The United States has tax treaties with more than 60 countries, ranging from China to Kyrgyzstan. Their main purpose is to prevent double-taxation of corporate profits.

• No new tax treaties or treaty updates have been approved by the Senate since 2010, when Paul was first elected on a wave of support from supporters of the Tea Party movement.

• Before Paul's election, tax treaties were routinely approved by the Senate.

Under the new treaties, foreign governments intent on combating tax avoidance could too easily access Americans' personal tax information, Paul said.

"We can't forget about the innocent Americans who are not breaking the law and do have a right to privacy," Paul said, adding that he wants the treaties rewritten to eliminate information-sharing provisions.

Under Senate rules, one senator can place a "hold" on a motion for a vote, preventing it from reaching the Senate floor.
Earlier this year, the Senate Foreign Relations Committee approved the five tax treaties with:

• Chile,
• Hungary,
• Switzerland,
• Luxembourg and
• the Organisation for Economic Co-operation and Development.

Senate approval is needed for them to take effect.


Business lobbyists said on Wednesday that Senate Democrats likely would continue to bring up the tax treaties for debate to draw attention to Paul's objections.


In debate on the Senate floor, Democratic Senator Benjamin Cardin said food-maker McCormick & Co Inc has been hurt by the Senate's inaction on the treaties.



US taxpayers who have undeclared accounts in Credit Suisse or other Swiss banks, may now want to consider applying for the US Offshore Voluntary Disclosure Program (OVDP), which sets a limit to the penalties imposed on them by the Internal Revenue Service (IRS) for failing to declare foreign assets and earnings.

 

Once either:

• The Swiss Banks disclose an account holder's name to the IRS under the non prosecution agreement or 
• Mr. Andreas Bachmann or Josef Dorig or Markus Walder or Susanne Ruegg-Meier or Roger Schaerer discloses an account holder's name to the IRS or
• Any 1 of the other 11 Credit Suisse Bankers, who were indicted in 2011 along with Mr. Dorig, discloses an account holder's name to the IRS 

the OVDP election is no longer available to that account holder!!!

 

Taxpayers Who Wish To Take Advantage

Of The OVDP Must Act Quickly! 

 

Have Un-Reported Income From a Swiss Bank?

Value Your Freedom?

Contact the Tax Lawyers at

Marini & Associates, P.A.

for a FREE Tax Consultation Contact US at 

www.TaxAid.us or www.TaxLaw.ms

or Toll Free at 888-8TaxAid (888 882-9243).

Source

Reuters