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Panama Papers Mossack Fonseca Leak

Discussion in 'TRIBE Main Forum' started by Bernnie Federko, Apr 4, 2016.

  1. ndrwrld

    ndrwrld TRIBE Member

  2. ndrwrld

    ndrwrld TRIBE Member

  3. ndrwrld

    ndrwrld TRIBE Member

  4. Jeffsus

    Jeffsus TRIBE Member

    My cousin happened to be born in the USA, but has never had citizenship there. She left before she was one year old and is Canadian by virtue of her parents and 40 odd years of living in Ottawa.

    Now, she is being hassled by the American government to pay taxes there. The Americans really overstep boundaries when it comes to taxation.

  5. djfear

    djfear TRIBE Member

    According to their laws she has American citizenship. It's a human rights abuse to be deemed stateless and not every country would grant you citizenship based on your parents, especially if you're not even born there.

    She should renounce her citizenship if she doesn't want to be hounded by the IRS, or even arrested if she goes to visit.
  6. Jeffsus

    Jeffsus TRIBE Member

    She is actively trying to "renounce" her citizenship but it's expensive and time consuming and in the meanwhile the US is demanding she pay taxes.

    Canada isn't much better. When I lived abroad I still had to pay taxes to Canada merely because I'm a citizen. Especially with the new rules on who is eligible to vote, I don't think this is fair. Boss Hog can probably chime in here.

  7. Bass-Invader

    Bass-Invader TRIBE Member

    You don't have to pay taxes to Canada if you are a non-resident unless:
    a. you have some kind of canadian business or assets, then obviously you need to pay taxes on those; or
    b. you are renting a property you own in canada out to people.

    In the latter case you can either pay 25% of the gross rental revenue, or file a canadian tax return and pay 25% of the profit.

    This is different from the US where you are expected to pay income tax no matter where you are. However, you can offset that income tax with the taxes paid to your host country. Since US income taxes are relatively low, that usually completely offsets.
  8. Jeffsus

    Jeffsus TRIBE Member

    You have to pay taxes in Canada, regardless of where you may live, unless you file to become a non-resident for tax purposes.

    Something as simple as having a driver's licence will disqualify you for being a non-resident for tax purposes.

  9. Bass-Invader

    Bass-Invader TRIBE Member

    I had a driver's license, a Canadian property, Canadian bank account and several Canadian credit cards. Was (and still is) a non-resident.

    The test is whether you have 'significant residential ties' and it is a multifactorial test. A driving license can be taken into account, but they look at circumstances in the round, as in where you are actually living, for how long, employment status. It's pretty reasonable.
  10. ndrwrld

    ndrwrld TRIBE Member

  11. Boss Hog

    Boss Hog TRIBE Member

    Ditto on what Bass Invader wrote. Except I never had a license, so now I can't get one as a non-resident.

    So... I get to go through driver's ed in Tanzania. That should be fun.
  12. ndrwrld

    ndrwrld TRIBE Member

  13. alexd

    alexd Administrator Staff Member

    A few bucks under the table: license probably granted!
  14. Bernnie Federko

    Bernnie Federko TRIBE Member

  15. Bernnie Federko

    Bernnie Federko TRIBE Member

    Yesterday, 170 officials raided the German headquarters of Deutsche Bank as part of a $350-million money laundering investigation tied to the Panama Papers.

    In 2016, a global network of news organizations and journalists released the Panama Papers, documents that called out some of the world’s wealthiest people, including 900 Deutsche Bank customers, for dodging taxes by transferring money to overseas accounts. FYI, offshore accounts are money havens for very wealthy people. Money is transferred to suspicious companies in places that have lax tax laws, effectively hiding money and often avoiding taxes back home.

    So, why now and why Deutsche Bank?
    Police suspect that Deutsche Bank employees helped clients set up offshore companies that amounted to hundreds of millions of dollars. Investigators are very interested in one particular Deutsche Bank in the British Virgin Islands that processed more than $350-million in 2016. While suspicions about Deutsche Bank came out of the Panama Papers, this new investigation covers transactions between 2013 and 2018. Deutsche Bank acknowledged the investigation and offered its full cooperation. Yesterday’s raid and the bank’s troubled past (payouts of more than $18-billion for legal disputes and fines) caused its shares to dip to an all-time low.

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