Special Guest: Mark Nestmann - Since 1990 has helped hundreds of clients
seeking wealth preservation and international tax planning solutions. He is
the author of many books and reports dealing with these subjects and a popular
public speaker. Beginning his career as an investigative journalist in 1983,
Nestmann now serves as President of The Nestmann Group, Ltd., an international
consultancy assisting individuals to achieve their wealth preservation goals.
He also is the Tax and Asset Protection editor for The Sovereign Society. Nestmann
divides his time between offices in Vienna, Austria and Phoenix, Arizona. In
2005, Nestmann was awarded a "Master of Law" (LL.M.) degree in international
tax law at the Vienna University School of Economics and Business Administration
in Vienna, Austria. Nestmann's research and thesis dealt with the subject of "exit
taxes" imposed on individuals who change their tax residence from one jurisdiction
to another.
26 Minutes
After establishing a noted career in international investment, Mark Nestmann
left the US for three years to study for his "Master of Law" (LL.M.) degree
in international tax law at the Vienna University School of Economics and Business
Administration in Vienna, Austria. This is an indication of the seriousness
and rigor with which Mark tackles issues in International Taxation for his
high net worth clients. He shared his views with the FINANCIAL REPRESSION AUTHORITY
in this exclusive interview.
Foreign Account Tax Compliance Act - FATCA
Passed in 2010 and hidden as part of a "Military Pensions Act", no one fully
understood what it meant or paid much attention to it.
"The Foreign Account Tax Compliance Act, is one of the most arrogant
and one-sided laws ever passed by Congress. The idea behind FATCA, which
Congress enacted in 2010, is simple: Demand that other countries enforce
America's imperialistic tax laws. And do so by the confiscation of foreign
assets, if necessary." - Why
FATCA Is a Train Wreck Waiting to Happen - Mark Nestmann
"What is happening is foreign financial institutions (which is defined very
broadly in the act) under the law are required to identify their US clients
and force their US clients to self identify and turn over information to the
IRS."
"If the banks or countries don't comply then 30% of their US source income
(and in some case 30% of source gross sales revenues) of things like stocks,
bonds, CDs etc are withheld - this is a pretty big number! The only way banks
can avoid the 30% withholding tax is to essentially act as unpaid IRS informants."
"Not surprisingly, FATCA and numerous other laws that require FFIs to
enforce US money laundering, anti-terrorism, and securities regulations
have led most of these institutions to fire their US clients. Perhaps one
in 10 - and possibly fewer - non-US banks still permit US citizens or permanent
residents to open accounts. That leaves little choice for Americans but
to deal only with banks that have agreed to toe the IRS line." - Why
FATCA Is a Train Wreck Waiting to Happen - Mark Nestmann
"Non US persons investing in the US are also effected by FATCA. If their
foreign bank don't comply their US investment is whacked 30% as well -
It isn't just Americas who should care about this but basically everyone
in the world!"
This
is not a good time to have unreported financial accounts in countries
that have already signed FATCA agreements with the US, or are about to. If
you're in this situation, you might want to seriously consider retaining
a tax attorney to enroll you in the IRS's latest Offshore
Voluntary Disclosure Program.
Passive Foreign Investment Company - PFIC
"PFIC is another aspect of Financial Repression and aspect of regulatory restrictions
on investment choices."
"If you have an investment vehicle registered outside the US the IRS will
consider it a PFIC. As an example of the way this tax is very unfavorable is
that unless an offshore Mutual Fund qualifies as a US Mutual Fund when you
sell it (or deemed to sell it) you have to file not only a return on the income
by also a "throwback" interest charge for EVERY YEAR you held the fund. Additionally
the tax rate is computed at the highest marginal rate in that year!"
"What happens is that people who held offshore mutual funds for a long
period of time windup losing every penny of income in that fund because
it is paid out in taxes and interest penalties."
... there is much, much more in this 26 minute video interview covering:
- CITIZENSHIP TAXATION (including the absurdity of 1986 Tax Legislation
for "Mars"??)
- UNOFFICIAL CAPITAL CONTROLS NOW IN PLACE,
- US 2008 "EXIT TAX" (for citizens and Green Card holders on unrealized
gains),
- INHERITANCE IRS TAX GRABS,
- THE NEW EX-PATRIOT ACT,
- INVESTING ABROAD,
- THE RATE OF ACCELERATION OF RESTRICTIVE FOREIGN CHOICES FOR AMERICANS,
- THE GROWING MOVEMENT TOWARDS SECOND CITIZENSHIP PROTECTION,
- WHY THE LEGAL ABOLISHMENT OF CASH IS COMING.
