Foreign Banks Face U.S. Tax for Concealing Accounts
Bloomberg has reported that two leading U.S. lawmakers proposed legislation that would impose new taxes on foreign banks that refuse to disclose the identity and contents of accounts owned by Americans.
The measure would impose a 30 percent withholding tax on income from U.S. assets held by non-U.S. institutions that refuse to name American account holders and report balances, deposits and withdrawals.
However the bill disappointed some of the most-aggressive critics of offshore-tax avoidance. It doesn't include a proposal from Mr. Obama to establish legal presumptions that favor the IRS in prosecuting suspected tax dodgers. It also leaves out more-stringent proposals from other lawmakers, including one that would treat offshore corporations as U.S. firms for tax purposes if their senior executives were located in the U.S. (see WSJ)