The Tax Times: Republican and Democratic Lawmakers Vow to Push Tax Treaties Delayed by Sen. Paul!

Over a year ago, we posted U.S. Senator Rand Paul Continues To Block 5 Important Tax Treaties where we 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 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.

Now Republican and Democratic lawmakers vowed on October 28, 2015 to push for the ratification of eight tax treaties which have been held up for years because of one Republican senator's objections, despite support from companies that want consistency in rules for how to do international business.

objects to the agreements for privacy reasons, saying they would allow more inter-governmental sharing of financial information on citizens.

"The Treaties Don't Grant Access

to Taxpayer Records that are Beyond

What are Provided in U.S. law,"

said Thomas Barthold, chief of staff of the government's Joint Committee on Taxation.

October 28, 2015's hearing discussed tax treaties with Switzerland, Luxembourg, Hungary, Chile, Spain, Poland and Japan and the international convention on mutual assistance on tax matters.

Paul, who is running for his party's nomination in the 2016 presidential election, delayed by several hours the chamber's vote on a major budget deal negotiated by congressional leaders and the White House, which he sees as doing too little to control spending.

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.

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