FATCA and CRS increase pressure

We have being talking for some time about the FATCA and CRS impacts on people’s lives and however as incredible as it seems most prefer to think that they won’t be hit (the syndrome of it will not happen with me) and shove their heads in a hole or worse are very badly advised by their consultants and lawyers who continue taking advantage of the trust of their customers to push the problem under the carpet. The world is changing and fiscal transparency is here to stay, as well as reduction of privacy. To stay protected it will be necessary to raise the sophistication of structures to remain in compliance with the rules. But let’s not spend much time just talking and let’s get it to the facts.
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Dilma Rousseff government accounts to vote now!

With the decision of the Supreme Court that the presidential accounts must be voted on in a joint session between the senate and the chamber of deputies, the government that recently sewed an agreement with Renan Calheiros, president of the Senate and the Congress, has woven an important victory, because only he can put the accounts of Dilma Rousseff on the agenda for a vote for approval or rejection, which they are trying to avoid at all costs because it would bring further complications for the president.

Politicians need to understand that they have responsibilities to the public and that voting and ruling over the accounts is the democratic way we have to evaluate them and if it is the case claim their responsibility, it is an instrument of the people.

Renan Calheiros said this week that it is not the interest of the country at this time put on the presidential accounts for voting.

Do you agree with Renan’s statement? Do you accepts that only the person who at the time can put the accounts to a vote decides for all the millions of Brazilians to such an important issue?

If like me you do not agree and are tired of seeing all end up in pizza Join the petition to Congress to bring the accounts to the agenda </ strong> once the assessment of TCU is finished.


Brazil – FATCA

Brazil approved the IGA (Intergovernmental Agreement) for the implementation of FATCA (Foreign Account Tax Compliance Act) agreement to exchange tax information and Improving International Tax Compliance with the United States on July 25th. The article was approved at an accelerated rate due to the meeting between President Dilma and US President Barack Obama at the end of the month.

The matter reached the Senate as Legislative Decree Project International Agreements 257/15 and was dispatched for analysis of the Foreign Relations Commission (CRE), where it obtained a favorable opinion for its approval, and then forwarded to the Senate and got unanimous approval.
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Estate Tax

Again returned the agenda of fiscal adjustment an increase in the estate tax, and as we anticipate here in mid-April, this would be the most logical and simple way forward:

Interestingly, the Governor chose to push the less efficient hand, since introducing a tax on large fortunes or a federal tax on inheritances coming up in various difficulties, the path that seems to be more logical would be to legislate to increase ITCMD rates thus increasing its revenues by states, including Maranhão, with some compensation in transfers received in order to also benefit the federal government.

Check our full review on that subject in April 14th: Veja nosso post completo de 14 de Abril: A little push… to the wrong direction?/a>

Although the Finance Minister Joaquim Levy is against the proposal, the options seem to be running out, since successive defeats have become virtually certain to reduce the fiscal target for this year, and that this tax would hit the richest people of society, in line with the PT will. Both Mercadante, Chief of Staff and Nelson Barbosa are supporters of the idea.
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Switzerland again..

We have said several times that being in Switzerland today is the same as being in the eye of a hurricane, impossible to know what will happen every day, but one thing is clear, there is a huge fight today to bring clear all What happens in the country. A good part with US aid.

We will not extend ourselves here, so we refer to the article published on the Swissinfo website ( Original Article ).

As one Swiss politician who fought to clean FIFA: “The US is doing what Switzerland failed to make calling for the arrest of several senior Football executives is very bad for Switzerland – a global center for international organizations and governance – not have done more persistently pursuing allegations of corruption that long circled around FIFA. We asked FIFA to clean up their actions years ago, while there was still time to do it. They did not follow this path and now it seems that US will do that for FIFA and Switzerland. It’s a pity that the whole world is looking to Switzerland.

This time were we doing the talking.

Switzerland and Brazil to exchange more information

It is known that the automatic exchange of tax information between the two countries will take place in 2018 (end of 2017 for Brazil and 2018 for Switzerland), but the conversations between the two for the signature of a bilateral treaty are well advanced and should be signed well before the OECD agreement be operational.

Philippe Nell (head of the Americas division of SECO, the State Secretary for Economic Affairs of Switzerland), passed the information that the Swiss government is in advanced negotiations for a bilateral agreement with Brazil. This commitment includes the exchange of information, as foreseen by the OECD agreement, but also to free trade.
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The Finance Minister is missing!

The Finance Minister is missing (Joaquim Levy), for now only from a press conference, but for many the risk of him disappearing from this economic team are real, whether by discontent, self-will, the will of the president, congress or even former presidents, Lula in case.

Shortly after the event, the Minister came to justify the absence that was caused by a health problem, citing the noise that the media made about it. And why all this is relevant? It’s precisely the credibility of Joaquim Levy that’s holding this government today, if it turns out, for any of the possible reasons who will bring the necessary adjust measures to put the economy back on track.
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Minimum EB-5 Investment Amount Expected to Increase to US$750,000

Photograph of a U.S. Department of Homeland Security logo.

We just received the following communication from the immigration Law Firm Schonberg & Timerman, P.L.:

“This year, U.S. Senate will vote on an authorization bill to renew the EB-5 program for another 3 years. The last statutory renewal of the EB-5 bill was enacted on September 28, 2012. The new bill is expected to raise the minimum EB-5 investment amount of US$500,000 since that amount has not changed since 1990 when the EB-5 visa was implemented.

The US Secretary of Homeland Security Jen Johnson has recently recommended to the U.S. Senate an increase of 50% to the minimum investment amount required for the EB-5 visa. That is to increase from $500 to $750 thousand USD. As a result, by latest of September 30th, 2015, it is estimated that the minimum required investment for the EB-5 visa will be US$750,000.”

So if you were thinking about using this method to move to the US think faster. Don’t forget to have your pre-immigration planning done before receiving the temporary green card. Contact us if you seek forward looking solutions.

Swiss Banks freezing accounts and blocking withdrawals

For the past months we have being receiving information that Italian clients were having some problems transferring or withdrawing assets from Swiss banks. Since this information was getting almost zero repercussion outside Italy we decided to explain what is happening.

As you may already know about the global shift to tax compliance, usually you hear more US related news. This time Italians are under scrutiny from their government and Swiss deposits are the top priority. Anyone thinking that this won’t happen to many other countries think again. Belgium and France are on the same path.

To their defense, Swiss banks are adopting measures to safeguard their interests and operations (just to make sure that you all understood, THEIR interests not their client’s). Some of them are only allowing transfers to accounts in white listed countries that are already under OECD tax information standards, only under the clients personal name and after the client went to the bank in person, with his lawyer to sign documents saying that he is tax compliant in his home country reliving that bank of any misconduct. Of course the client has to convince the receiving bank that his funds are tax compliant as well. Cash withdrawals are also being blocked and recent court cases are backing the right of the banks to do so (don’t you read the bank account contract’s small letters??). Credit Suisse and BSI (recently acquired by BTG Pactual) are among those taking this measures.
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Brazil Receita Federal issued new rules for the differentiated monitoring of large taxpayers

Brazil Receita Federal issued new rules for the differentiated monitoring of large taxpayers, which is the surveillance of economic-tax behavior of individuals, sectors and economic groups, especially large enterprises.
Monitoring has the objective of “producing analysis on the most significant negative variations that result or may result in loss of actual or potential revenue” and “promote tax compliance initiatives among major contributors, prioritizing actions to self regulation”.
According to the decree published in the Official Gazette, this monitoring will be carried out systemically, regionally-oriented work processes defined by the Special Coordination Major Contributors (Comac), subject to the guidelines established by the Supervisory Secretariat (Sufis).
The criteria for classifying companies subject to differentiated monitoring will be declared gross income declared debts, wages and participation in the collection of taxes administered by Revenue.
Individuals will be subject to this monitoring from the analysis criteria as a total declared income, assets and rights in equities operations, one-person investment funds and participation in legal persons subject to differentiated monitoring.

See the ordinance publication of the full (portuguese) here .


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