Bad News for Offshore Tax Evaders: U.S. Targets Caribbean Accounts

Simons Images, Flickr Caribbean tax exasions
Simons Images, Flickr
MIAMI -- U.S. taxpayers who stashed money in one of the Caribbean's largest banks without telling the Internal Revenue Service could be in trouble.

The U.S. government has obtained a court order to collect the names of taxpayers who had an account with CIBC FirstCaribbean International Bank over an eight-year period.

Justice Department spokeswoman Dena Iverson said Thursday this is the fourth time the government has issued this type of blanket banking subpoena to target offshore tax evaders and the first time in the Caribbean.

Court papers show the IRS decided to look at FirstCaribbean after reviewing account information from 129 people who voluntarily came forward to disclose offshore accounts.

The bank has branches in 17 Caribbean countries. It has said in a statement it will cooperate with U.S. authorities.


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maceandemma

peter.draggin wrote: "So nearly half of all Amercans are unpatriotic by your standard"

Enjoy your myth. They pay state, county and city taxes. But hey, don't let a little thing like fact get in your way.


Of the 47%, who paid no taxes 66% were business. (this would be humorous if it were not so sad.)

Of the non-business owners who paid no taxes half are elderly

Of the non-business owners who paid no taxes 33% make less then $20,000 a year.

taxpolicycenter.org

May 03 2013 at 10:50 AM Report abuse +3 rate up rate down Reply
Mel

Has anyone told Mitt yet? Course, he's usually on top of stuff like shady financial wheeling and dealing and hiding money. I'm sure by now he's pulled his millions out of the Caymans and stashed it in one of his several Swiss accounts.

Not to worry, Ann.

May 03 2013 at 10:30 AM Report abuse +1 rate up rate down Reply
scottee

if Washington scrapped the 73,000 pages of tax code and everyone paid the same small (keyword: small) percentage...this would not be an issue. with a small national sales tax, everyone would pay, the rich would pay more, congress would have less power, the IRS could be cut to a 1/4 of it's size, and April 15 would just be another spring day. win/win/win/win/win

May 03 2013 at 10:12 AM Report abuse +3 rate up rate down Reply
rickcraft55

Get them all I hope. Personally do not care what political party they may belong to if they have not paid their taxes get em.

May 03 2013 at 10:01 AM Report abuse +1 rate up rate down Reply
1 reply to rickcraft55's comment
scottee

what about everyone who gets benefits and doesn't pay tax?

May 03 2013 at 10:13 AM Report abuse +2 rate up rate down Reply
ectullis

Never happen

May 03 2013 at 9:17 AM Report abuse -1 rate up rate down Reply
rich_paddlyrich

Thank you dumbrepukes, I love your post! It deserves to be posted again.


Citizens for Tax Justice 1311 L St. NW, Washington, DC www.ctj.org 202-626-3780
WEDNESDAY, SEPTEMBER 22, 2004 at 12:30 P.M. EDT
CONTACT: Bob McIntyre, 202/626-3780, ext. 22 (6 pages)
Bush Policies Drive Surge in Corporate Tax Freeloading
82 Big U.S. Corporations Paid No Tax in One or More Bush Years
Eighty-two of America’s largest and most profitable corporations paid no federal income tax
in at least one year during the first three years of the George W. Bush administration — a
period when federal corporate tax collections fell to their lowest sustained level in six
decades. This is one of the many troubling findings of a major new report on corporate tax
avoidance by Citizens for Tax Justice (CTJ) and the Institute on Taxation and Economic
Policy (ITEP). The report covered 275 profitable Fortune 500 corporations, with total U.S.
profits of $1.1 trillion over the three-year period.
“The sharp increase in the number of tax-avoiding companies reflects the results of
aggressive corporate lobbying and a White House and a Congress eager to do the
lobbyists’ bidding,” said Robert S. McIntyre, director of CTJ and co-author of the report with
T.D. Coo Nguyen of ITEP.
Skyrocketing Corporate Tax Avoidance
In part due to a major expansion in corporate tax breaks in 2002 and 2003, along with
continued failure by Congress and the White House to curb abusive corporate offshore tax
sheltering, corporate tax avoidance has skyrocketed. For example:
# Eighty-two of the 275 companies, almost a third of the total, paid zero or less in
federal income taxes in at least one year from 2001 to 2003. Many of them enjoyed
multiple no-tax years. In the years they paid no income tax, these companies earned
$102 billion in pretax U.S. profits. But instead of paying $35.6 billion in income taxes as
the statutory 35 percent corporate tax rate seems to require, these companies
generated so many excess tax breaks that they received outright tax rebate checks from
the U.S. Treasury, totaling $12.6 billion. These companies’ “negative tax rates” meant
that they made more after taxes than before taxes in those no-tax years.
# Twenty-eight corporations enjoyed negative federal income tax rates over the entire
2001-03 period. These companies, whose pretax U.S. profits totaled $44.9 billion over
the three years, included, among others: Pepco Holdings (–59.6% tax rate), Prudential
Financial (–46.2%), ITT Industries (–22.3%), Boeing (–18.8%), Unisys (–16.0%), Fluor
(–9.2%) and CSX (–7.5%), the company previously headed by our current Secretary of
the Treasury.
# In 2003 alone, 46 companies paid zero or less in federal income taxes. These 46
companies, one out of six of the companies in the study, told their shareholders they
earned U.S. pretax profits in 2003 of $42.6 billion, yet received tax rebates totaling $5.4
billion. In 2002, almost as many companies, 42, paid no tax, reporting $43.5 billion in
pretax profits, but $4.9 billion in tax rebates. From 2001 to 2003, the number of no-tax
companies jumped from 33 to 46, an increase of 40 percent.
# After 2001, the average effective rate for all 275 companies dropped by a fifth, from
21.4 percent in 2001 to 17.2 percent in 2002 and 2003, less than half the statutory 35
percent corporate tax rate that corporations ostensibly are supposed to pay

May 03 2013 at 8:52 AM Report abuse +2 rate up rate down Reply
roanbadger

So what is the difference if somebody puts unclaimed money in an off shore bank and putting money in a safe in the house? If it's unclaimed what does it matter where it is put?

May 03 2013 at 2:30 AM Report abuse +1 rate up rate down Reply
ovstampco

sue4nell has stink finger points out ;

Okay....so racist / republicans. Why do you always have to drag your hate and discontent into every conversation? There are those on both sides who have money stashed in foreign accounts. Don't believe it? Do some research. We'll probably never know the ratio, however I would guess it's by far more republicans.

May 03 2013 at 12:42 AM Report abuse -2 rate up rate down Reply
ovstampco

cantwealljustgetalong the gay cowboy points out ....

I have noticed that the racist / republicans hate is far worse and they obstructed a lot of good legislation. Can you say h y p o c r I t e?

May 03 2013 at 12:41 AM Report abuse rate up rate down Reply
ovstampco

jpark377 likes petite asian boys writes ;

Mitt doesn't pay taxes, though Harry Reid told the truth about it from the Senate floor, just to to point out that he is a fair and decent man . Funny how those conservative stooges in congress exempted themselves from slander and liable, as long as it's uttered in the chamber. He was elected attack dog: Mitt Romney isn't a "real" Man? That's even below a fine man like Harry Reid.

May 03 2013 at 12:39 AM Report abuse +1 rate up rate down Reply