America is sure to be a tax haven in the Pandora Papers: what now? – Lines

Denise-Emmanuel Philippe of Bloom Law says, “I’m been a tax lawyer for 19 years, but the world has changed completely in the last six years. There were leaks.Panama documents were followed in 2015. After leaking millions of secret documents about coastal structures there are now Pandora documents.
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Denise-Emmanuel Philippe of Bloom Law says, “I’m been a tax lawyer for 19 years, but the world has changed completely in the last six years. There were leaks.Panama documents were followed in 2015. Millions of confidential documents about coastal structures are now leaked to Pandora.These constructions are not illegal, if the vehicle is operated domestically, everything will be properly reported to the Belgian tax authorities.In recent years a lot of money from tax havens to the United States It is astonishing that hundreds of millions of people would have moved to South Dakota, and the states of Florida, Delaware, Texas, and Nevada are also frequently featured in the Pandora Papers. Appear. According to Philip, Pandora’s documents prove that the web is closed around tax evaders. In Belgium, there has been a Cayman tax since 2015, which is a tax-tax that forces natural and legal persons to declare their foreign legal provisions and if the tax is less than 15 percent of the income of the arrangement, the income must be taxed as the direct recipients themselves. Cayman Tax targets founders, shareholders and beneficiaries. “Income taxable from a trust such as dividends and interest is taxed on personal income tax. If the trust makes a distribution, in principle, the tax must be reimbursed,” explains Philip. From 2019, due to the implementation of the European Order for Belgian companies and law firms, the final beneficiaries will be included in a Central Register – UBO Register. UBO stands for Ultimate Beneficiary Owners. The United States does not have a UBO record and does not exchange financial information with the countries where the owners of the trusts or owners benefit. “In fact, the European Union, along with Panama and countries like Trinidad and Tobago, should add the United States to its list of non-cooperative jurisdictions. I think nothing has changed.” The EU may then impose a 30 percent withholding tax on all fees from the union to financial institutions in the United States. The United States is doing the same with financial institutions around the world, refusing to release information about the accounts of American citizens’ customers. Philip thinks the United States is gradually changing. “Congress passed the Corporate Transparency Act in early 2021, but trusts seem to be out of the ring and sanctions are not enough.” “In the European Union, consultants are obliged to report certain cross-border arrangements known as the DAC6 Command. Suppose a Belgian banker, lawyer or tax adviser is involved in a case in which the ultimate beneficiary cannot be identified. Consultants in Switzerland and Monaco, on the other hand, have no obligation to report. ” They are imposing criminal fines. ” Says Philip.