Offshore Banks Imposing Tax

[rbrb]

Recall reading recently that EEC legislation effective later this year will impose tax on certain persons who receive interest from offshore banks from the likes of bank accounts held in places such as Isle of Man and Guernsey.

To whom does this apply and not apply?

What are the tax rates?

What argumenets can be raised against such imposition?

Many thanks in advance.

[Thetyim]

The tax applies to all EEC citizens

I think the rate is a 10 percent witholding tax

Plenty of arguments can be raised but none will be listened to.

You have to pay it if you are an EEC citizen

[Sunny Valentine]

Is it the citizenship (Passport) or residency that counts? Anyone knows?

Sunny

[Thetyim]

Citizenship

[LivinLOS]

Residency, discussed this with Barclays Jersey and I.o.M.

[Sunny Valentine]

Will probably have to discuss this with my Jersey Bank, too.

Has the date of introduction for this tax been set yet?

Sunny

[LivinLOS]

Well Barclays are downplaying it.. There are so many parts that need agreement and ratification that its a complex issue.. Last I heard mid 2005 was the general position but that could be pushed well into 2006..

I was far far more concerned with reporting assets to EU governments side to these transpaency rulings more than withholding taxes.. I have a large (8 figure) disagreement with a European government over taxation issues and protection of my privacy was and is my primary concern.

When I state residency I should clarify.. Its only important for residency IF you are a Brit (I cant confirm for others but I know Yanks can be foced to pay taxes even when non resident to keep a green card) as a Brit I must be non resident in the UK to not pay UK taxes and non resident in the EU to be free of these witholding taxes.

[mas]

be careful, the feds monitor this group and will confiscate your account if suspected of tax fraud.

[LivinLOS]

er yeah sure.. The 'feds' (being a US based organisation) are going to confiscate money based on an internet post... For a issue that has never been proven in a court of law and exists due to the grey areas of cross border taxations (eg the Brits say all is fine another EU member state does not)..

[meom]

be careful, the feds monitor this group and will confiscate your account if suspected of tax fraud.

What about tax evasion? Taking up residence outside EEC for example in order to be exempt from taxation has nothing to do with fraud.

[ArtfulD]

be careful, the feds monitor this group and will confiscate your account if suspected of tax fraud.

<{POST_SNAPBACK}>

What about tax evasion? Taking up residence outside EEC for example in order to be exempt from taxation has nothing to do with fraud.

<{POST_SNAPBACK}>

Tax avoidance, and tax evasion are different things...tax evasion is being liable for taxes and NOT paying them. Not staying in a country long enough to be classed as resident for tax purposes or any other means of not making yourself liable for tax within the boundries of current law, is tax avoidance and legal.

The two terms may seem the same but the meanings are different.

http://www.2-small-business.com/evasion_tax_uk.shtml

[meom]

You're right. Glad I'm still legal