Socialist’s

Stoolpigeons

Could Puerto Rico Be the Next Hot Tax Haven?

Some 65,000 Puerto Ricans left their bankrupt U.S. island commonwealth last year. A group of private bankers are moving the other way. They’re increasingly opening offshore banks known as International Financial Entities, which were created by a Puerto Rican law in 2012. There are 44 IFEs now, with 18 opening in the past year, according to data compiled by the U.S. territory’s financial regulator. “Just in the last six months, we’ve probably closed seven deals for international banks,” says Ryan Christiansen, president of Christiansen Commercial Real Estate, a brokerage based in Puerto Rico that leases office space. 

Tax experts attribute at least part of the influx to a little-known loophole made possible by the IFE structure. 

It lets non-U.S. account holders put money in Puerto Rico anonymously and potentially avoid taxes at home even as they benefit from the stability and safety of the U.S. 

That’s become increasingly attractive because of a new global financial-disclosure system taking effect in September.  

Under the Common Reporting Standard, more than 100 countries have agreed to automatically provide to one another annual reports about accounts belonging to people subject to taxes in each member nation. 

Previously, they mainly shared information on request, making it harder to identify suspect accounts. Much like the U.S.’s Foreign Account Tax Compliance Act, which requires foreign banks to report on Americans with accounts, the CRS initiative is meant to combat the use of offshore bank accounts to evade taxes.

DYI:

100 high tax socialist countries – and the good old US of A is socialist as well – are so desperate for tax revenues they have to resort to nothing more than a stoolpigeon law in order to snitch on their fellow citizens.  The real problem with socialism as it grows in size providing the carrying cost in many cases from cradle to grave you begin to run out of other people’s money to tax.  That is when draconian laws such as the Common Reporting Standard are put into place.  The solution is to “dial down” the level of government programs eliminating the need for punitive laws.  America’s founding Fathers in the Declaration of Independence shouted to the roof top “Life, Liberty and the Pursuit of Happiness!”  Happiness was clearly – well known through their writings – the pursuit of private property.  If every time you turn around the taxman has his hand out your property is reduced until by default your wealth is no longer private but converted to state ownership.

DYI