Germany taxes Swiss bank accounts

Banknotes of the Swiss franc

Germany and Switzerland signed an amendment to their deal on taxing secret offshore accounts on Thursday, toughening terms for tax dodgers after the main German opposition party blocked the original accord, saying it was too lenient.

The amendment makes it more likely the deal will get the backing from opposition-ruled states and be approved by the German parliament, ending years of tortuous negotiations and netting the country billions of euros.

The German finance ministry said Germany and Switzerland had agreed to raise the retroactive levy on German funds stashed away in Swiss bank accounts to a rate between 21 and 41 percent, from a previously agreed range of 19 to 34 percent.

They also agreed a one-off tax of 50 percent for those who inherit Swiss bank accounts and do not want to declare them, the finance ministry said.

Under the revised deal, German officials will be allowed to put in up to 1300 requests with their Swiss counterparts to investigate cases of fiscal evasion, versus a previously agreed 999.

Germans will have to alert the Swiss authorities when they move their money out of Swiss bank accounts from Jan. 1 2013, versus a previously agreed May 31, in order to prevent an exodus into other offshore accounts.

via Germany, Switzerland revise deal terms – International | IOL Business | IOL.co.za.

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Cash expands by $187b in untaxed offshore accounts

Image representing Pfizer as depicted in Crunc...

U.S. companies led by General Electric Co. (GE) and Pfizer Inc. (PFE) stockpiled an additional $187 billion in untaxed overseas profits over the past year, boosting their offshore holdings by 18.4 percent, according to data compiled by Bloomberg.

The 70 U.S.-based companies studied hold $1.2 trillion in profits around the world. GE and Pfizer have built up the most money outside the U.S., at $102 billion and $63 billion respectively, according to securities filings. Apple Inc. (AAPL), Google Inc. (GOOG) and Microsoft Corp. (MSFT) were among the companies that increased their accumulated overseas profits by more than 40 percent in 2011.

As U.S.-based companies expand globally, they keep profits overseas, legally out of the reach of the Internal Revenue Service. Lawmakers from both political parties point to the stockpiling as a symptom of a failed corporate tax system, even while they remain deadlocked over whether the U.S. should impose higher or lower taxes on its companies’ global profits.

“You’re seeing more and more business go on overseas, because that’s where an increasing amount of the global purchasing power is,” said Matt Miller, director of public policy at the Business Roundtable, a Washington-based association of chief executives at large companies that backs lower taxes on overseas profits. “We need to get a competitive tax system that is not antiquated and has all the complexities we have today.”

via Cash Horde Expands by $187 Billion in Untaxed Offshore Accounts – Bloomberg