TAXES »» OVERSEAS TAXES »» OFFSHORE BANKS »» Mar 04, 2024

An offshore bank is one located outside the resident country of a depositor, typically in a country that provides greater privacy and little or no taxation. Offshore banking is often linked to tax havens for criminals, money launderers and tax cheats. Experts believe that as much as half the world's capital flows through offshore centers. Tax havens have 1.2% of the world's population but hold 26% of the world's wealth, including 31% of the net profits of U.S. multinational corporations. It is estimated that more than $3 trillion is currently being held in these accounts. Offshore tax evasion is a global problem and has been called the biggest theft among societies and neighbor states ever committed. It is estimated our Treasury loses about $280 billion a year in tax revenue from wealthy Americans and companies hiding money in offshore banks. It is difficult to tax offshore accounts. Although the IRS requires taxpayers to declare offshore bank accounts, many do not. Most offshore banks, protected by secrecy rules, have no legal obligation to report these accounts either. Proposed Legislation: Reintroduction of S.725 - Stop Tax Haven Abuse Act (117th Congress 2021-2022) Prospective Sponsor: Sen. Sheldon Whitehouse (RI) I oppose reforming current offshore bank account policy and wish to donate resources to the campaign committee of Leader Charles Schumer (NY). I support improving existing tax enforcement measures to make it easier to identify tax evaders and hold them accountable by: 1.) Stopping foreign financial institutions from impeding U.S. tax enforcement; increasing penalties for corporate insiders who fail to disclose stock holdings and transactions with affiliated offshore entities; and improving disclosure of offshore accounts. 2.) Repealing offshore subsidiaries for tax purposes so U.S. corporations would no longer be able to check a box on an IRS form to make offshore subsidiaries and their taxable income 'disappear' when calculating their taxes. 3.) Requiring U.S. companies to provide full and honest reporting so officials would be able to easily determine whether they're booking profits to places where they are doing legitimate business, versus a tax haven subsidiary with no employees. 4.) Requiring companies to more publicly disclose information on the taxes they pay and investments they've made on a country-by-country basis. 5.) Forcing multinational entities to pay what they owe right away, or face the same interest rate ordinary taxpayers face for late payment 6.) Strengthening existing anti-money-laundering laws. 7.) Eliminating tax breaks for foreign oil and gas companies and closing a loophole that allows partnerships with foreign partners to transfer income offshore. And wish to donate resources to the campaign committee of Sen. Sheldon Whitehouse (RI) and/or to an advocate group currently working with this issue.

Winning Option »» I support improving existing tax enforcement measures to make it easier to identify tax evaders and hold them accountable by: 1.) Stopping foreign financial institutions from impeding U.S. tax enforcement; increasing penalties for corporate insiders who fail to disclose stock holdings and transactions with affiliated offshore entities; and improving disclosure of offshore accounts. 2.) Repealing offshore subsidiaries for tax purposes so U.S. corporations would no longer be able to check a box on an IRS form to make offshore subsidiaries and their taxable income 'disappear' when calculating their taxes. 3.) Requiring U.S. companies to provide full and honest reporting so officials would be able to easily determine whether they're booking profits to places where they are doing legitimate business, versus a tax haven subsidiary with no employees. 4.) Requiring companies to more publicly disclose information on the taxes they pay and investments they've made on a country-by-country basis. 5.) Forcing multinational entities to pay what they owe right away, or face the same interest rate ordinary taxpayers face for late payment 6.) Strengthening existing anti-money-laundering laws. 7.) Eliminating tax breaks for foreign oil and gas companies and closing a loophole that allows partnerships with foreign partners to transfer income offshore. And wish to donate resources to the campaign committee of Sen. Sheldon Whitehouse (RI) and/or to an advocate group currently working with this issue.

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