“As offshore havens comply with transparency demands, a growing number of ultra-wealthy Americans are handing back their passports
Private client lawyers and relocation specialists are reporting a surge in wealthy Americans living abroad who are prepared to give up their citizenship to avoid the scrutiny of US tax authorities.
Although such a move means they have to pay an exit tax, lawyers say this is a price people have become more willing to pay this year, now the fall in asset values has reduced the size of the imposition.
Jay Krause, a partner at private-client specialist law firm Withers, said: ‘The number of inquiries from US citizens wanting to expatriate from their citizenship has increased rapidly in the last year.’
The level of interest is set to increase following the tax disclosure deal between the US Government and UBS of Switzerland, involving the names of 5,000 alleged US tax evaders being handed over to the authorities. The UK concluded a tax deal with Liechtenstein last week.
Because of this, many ultra-wealthy individuals who have chosen to become stateless now cruise outside coastal waters in their mega-yachts in the belief that if they stay on the move, tax authorities will not be able to catch up with them. One analyst who did not want to be named, has estimated the number of stateless tax evaders amounted to a few thousand.
This implies the quantity of money outside the grasp of global tax authorities could be trillions of dollars.
Under US tax laws, the worldwide income of any US citizen or resident is subject to tax. The US is the only country in the world that requires its citizens to stump up, no matter where they live. . . .” (Read more from wealth-bulletin.com)
Wow! Maybe they’ll move to Africa and become Pirates! Can you tell me which country in the first world has lower taxes than the US? If you can’t, then delete this post and go find out before you spread rumours.
From the article: “Under US tax laws, the worldwide income of any US citizen or resident is subject to tax. The US is the only country in the world that requires its citizens to stump up, no matter where they live.”
See also: 101 Countries Have Lower Total Tax Rate than U.S.
See also: Europe Thumps U.S., Again – First lower taxes, now freer trade