The message below shows that one of our readers does not understand this yet. After his message I put my comments below.
Gary
How can a non-US institution, and there must be many thousands of them in hundreds of countries, be “forced” to comply with the IRS and become a tax collector for them? I would think that most of them would tell the IRS to stick it. Or simply ignore it. Sounds more like scare tactics for US “taxpayers.”
The problem began in the 70s when the SEC sued an investment manager in the US who was managing an overseas mutual fund which kept all its money in Switzerland. The SEC demand to the Swiss bank (Credit Suisse) that they return the money (it was many millions) to the US. The Swiss bank pointed out that the fund had not broken any law and that they had no legal way to return the money.
The US simply seized an equivalent amount of Credit Suisse’s money in the US. The was the beginning of the end of bank privacy. The simple fact is for an international bank to operate it must hold accounts in the US, England, Germany, Japan, etc. This makes these institutions vulnerable to the authorities in each country.
The new form which requires the W9 requires the overseas bank to provide the data on any US bond or share. The overseas bank does not have to comply, but if it does not, the US paying agent must deduct the 31% withholding tax.
This is why I have urged readers for years to find a legal way to have privacy. Do not hide money and reply on overseas banks to protect your privacy.
Good investing!
Gary
Update June 2009
Return to Ecuador & Bank Privacy
Save $249! Enroll in our July 24-26 International Investing and Business Made EZ seminar here
We enhance our emailed course with regular international investing and business seminars that I conduct in coordination with Jyske Bank and Jyske Global Asset Management.
Join me with Thomas Fischer of Jyske Global Asset Management and my webmaster David Cross in North Carolina July 24-26 IBEZ North Carolina
We’ll have a New River wine tasting at Bohemia Gallery as we did last year. here are delegates at that tasting.
Our North Carolina courses in 2009 will be conducted in the new…
West Jefferson Hampton Inn.
Just opening this June 2009 with very nice rooms and…
really great…
views. I took these from the hotel’s parking lot.
Save $249! Enroll in our July 24-26 International Investing and Business Made EZ course here
Here is what one reader wrote about our last seminar.
Hi Gary, Just a note to express our appreciation for a great event. The Naples Beach Hotel provided a comfortable setting for the gathering. The hotel should be congratulated for the excellent food and service. We enjoyed all of the speakers. I particularly enjoyed John Mauldin. I have followed his writings over the years. In 1994 we attended several of your seminars, I enrolled in the Multiple Currency Course and opened an account with Jyske Bank. This activity has provided us with a nice retirement income over the years. With economic disruptions world wide I decided to become reacquainted with currencies as an investment tool as a consequence of my very dark view of the USD’s future. Keep up the good work. My day is alway brightened by your daily emails.
Save $249! Enroll in our July 24-26 International Investing and Business Made EZ course here
