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London
Greenwich
New York
Geneva
Hong Kong
Milan
New Haven
CAYMAN FUNDS CONFERENCE
International Tax Developments and Implications forInternational Clients
Joseph A. Field
Senior Regional Partner - Asia
Withers - Hong Kong
Ritz Carlton Hotel, Grand Cayman
14 January 2010
Topics to be Discussed
What was 2009 all About?
Was this a US Phenomenon?
What does this mean for International People?
Where do we go from here?
A Few Surprises
A Few Conclusions
WHAT WAS 2009 ALL ABOUT?
The Great Recession
• Tremendous loss of value
• Tremendous loss of confidence
• Giant Government bailouts
Lehman Brothers
AIG
Merrill Lynch
Royal Bank of Scotland
WHAT WAS 2009 ALL ABOUT? (II)
The Government Needs to Show it Hates Crooks• Liechtenstein and Germany
• The US and Switzerland
• Argentina and Morgangate
What to do?• Go after hidden accounts
• Show how much revenue you have collected (even
though the costs may outweigh the returns)
WHAT WAS 2009 ALL ABOUT? (III)
Voluntary Disclosure (VD)
• An old programme
• The new one has teeth
FBARs
• Not a tax issue
• The bite can be brutal
• Some new definitions
WHAT WAS 2009 ALL ABOUT? (IV)
Who has been attacked?
• The 4400
• Others
How much revenue have collected (even though
the costs may outweigh the returns)?
WAS THIS A US PHENOMENON?
No, it started in Germany
It is a worldwide event
• Offshore jurisdictions encouraged to sign TIEA’s
• Hong Kong and Singapore have signed agreements
with OECD
• Liechtenstein has followed suit
British, French, Spaniards all gone after evaders
WHAT DOES THIS MEAN FOR INTERNATIONAL PEOPLE?
Occult offshore accounts no longer flavour of the
month
Banks will cooperate with governments
Governments will comply with international
standards
• Hong Kong and Singapore examples
• Swiss – US agreement
WHAT DOES THIS MEAN FOR INTERNATIONAL PEOPLE (II)
For US citizens, a nuclear winter
• New enforcement measures
• Greatly increased staff
• Jail for even little bad guys
• Can you open a bank account?
WHERE DO WE GO FROM HERE?
Greatly increased scrutiny – e.g. UK reporting
requirements for banks
New, enhanced ‘QI’ rules
Jail for tax cheats
Much greater exchange of information
Who is still hiding out there?
WHERE DO WE GO FROM HERE? (II)
Much of Stop Tax Haven Abuse Act shall be law
Strong anti-offshore sentiment
Willingness to make example of ‘innocent’
people
PS - They may fight back
A FEW SURPRISES
The UK and Liechtenstein
The SEC joins the fray
US Estate and Generation Skipping Taxes
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