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cashinmattress

British Banks Revolt Against Obama Tax Plan

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British banks revolt against Obama tax plan

British banks and stockbrokers may refuse to take on American clients if new international tax proposals outlined by President Obama are passed.

The decision, which would make it hard for Americans in London to open bank accounts and trade shares, is being discussed by executives at Britain's banks and brokers who say it could become too expensive to service American clients. The proposals, which were unveiled as part of the president's first budget, are designed to clamp-down on American tax evaders abroad. However bank bosses say they are being asked to take on the task of collecting American taxes at a cost and legal liability that are inexpedient.

Andy Thompson of Association of Private Client Investment Managers and Stockbrokers (APCIMS) said: "The cost and administration of the US tax regime is causing UK investment firms to consider disinvesting in US shares on behalf of their clients. This is not right and emphasises that the administration of a tax regime on a global scale without any flexibility damages the very economy it is trying to protect."

One executive at a top UK bank who didn't want to be named for fear of angering the IRS said: "It's just about manageable under the current system - and that's because we're big. The danger to us is suddenly being hauled over the coals by the IRS for a client that hasn't paid proper taxes. The audit costs will soar. We'll have to pay it but I know plenty of smaller players won't."

The British Bankers Association (BBA) and APCIMS had a meeting with European counterparts 10 days ago to discuss the crisis. A delegation is set to meet the US Treasury's Internal Revenue Service on 16th June to demand they drop the reforms.

Ahead of the meeting APCIMS, whose members manage £400bn of Britain's wealth and employ 25,000 people, has sent a letter to the IRS complaining that the "unfair" proposals represent "no benefit but... significant cost" to its members.

President Obama's proposals are built on the so-called Qualified Intermediary system which was intended to ensure Americans paid the correct tax wherever they were domiciled. Foreign financial institutions that handle American money have to fill in a US tax form on behalf of the client that has to be audited too. In return, the banks receive a QI seal of approval as a qualified intermediary.

I remember Gordon Brown making his speech at the US Congress, especially the part where he stressed that it was no time for protectionist measures, only to be greeted by silence.

Obama is pulling the plug on Americans investing outside of the USA, especially in Britain.

Special relationship over.

Britain, or more specifically, London on has been put on suicide watch.

EDIT: It was the Congress, not the House of Representatives.

Edited by cashinmattress

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Special relationship over.

Was it ever really there in the first place? I think it may have been a delusion of British prime ministers, like some psychotic stalker who plasters the walls of his flat with pictures of Alan Partridge.

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Tough t*t to the UK bankers. Ever happy to outsource a job, unless its their own of course. Let them burn.

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Was it ever really there in the first place? I think it may have been a delusion of British prime ministers, like some psychotic stalker who plasters the walls of his flat with pictures of Alan Partridge.

It was easy for Blair, his intellect was far superior to Bush.

Can't say the same in regards to Brown and Obama.

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Sounds suspiciously like a beginning of currency controls to me. They are trying to prevent people from moving money easily to other countries.

Flee the dollar now while there is still time! It's going to fall like a stone.

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Sounds suspiciously like a beginning of currency controls to me. They are trying to prevent people from moving money easily to other countries.

Flee the dollar now while there is still time! It's going to fall like a stone.

Max Keiser spoke about this on his show, the Oracle a while back. His guest, Micheal Hudson reckons that these measures are all about making the good old US of A the hedge fund capital/tax haven of the world.

Watch at 2:20

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This is a response to UBS circumventing the QI rules and enabling lots of US persons avoid US tax plus the US desperately needs extra tax revenue.

Basically the US Government wants foreign banks / governments to be their tax collecting agents with mass fines / penalties for even small mistakes and jail sentences for "responsible persons".

This is a big joke as if you are a non US person the best tax haven in the world is the US. Foreign individuals can receive US income (dividends / interest) free of withholding tax. More importantly the US does not require the IRS or any other government agency to collect this data.

Therefore any other country that has a tax treaty with the US with an 'exchange of information" paragraph may as well p*ss in to the wind when trying to get information from the IRS as they just don't collect it.

It is no coincidence that there are numerous private banks operating in the US set up to help non US persons avoid tax.

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This is a response to UBS circumventing the QI rules and enabling lots of US persons avoid US tax plus the US desperately needs extra tax revenue.

Basically the US Government wants foreign banks / governments to be their tax collecting agents with mass fines / penalties for even small mistakes and jail sentences for "responsible persons".

This is a big joke as if you are a non US person the best tax haven in the world is the US. Foreign individuals can receive US income (dividends / interest) free of withholding tax. More importantly the US does not require the IRS or any other government agency to collect this data.

Therefore any other country that has a tax treaty with the US with an 'exchange of information" paragraph may as well p*ss in to the wind when trying to get information from the IRS as they just don't collect it.

It is no coincidence that there are numerous private banks operating in the US set up to help non US persons avoid tax.

The Americans will do everything and anything to ensure their currency hegemony, and dodgy money is as good as clean money when it comes to making people at the top of the pyramid very rich.

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Obama's plan makes sense for the USA.

Perhaps we'll see a re-run of the 1812-14 conflict, with American vessels attacking the UK.

Though it will be Britain declaring war on the US this time round :lol:

Edited by gruffydd

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