Tax evaders on the run

October 7, 2009

  By Neil Chatterjee
    The U.S. has promised it will hunt down tax evaders.
    And it seems tax evaders are on the run.
    DBS bank, based in the growing offshore financial centre of
Singapore, told Reuters it had been approached by U.S. citizens
asking for its private banking services. But when told they would
have to sign U.S. tax declaration forms, the potential clients
disappeared.  
    Swiss banks also approached DBS on the hope they could
offload troublesome U.S. clients to a location that so far has
not been reached by the strong arms of Washington or Brussels.
    DBS said no thanks. In fact many private banks and boutique
advisors now seem to be avoiding U.S. clients.
    Will this spread to other nationalities, as governments
invest in tax spies and tax havens invest in white paint?
    Is this the end of offshore private private banking?

8 comments

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

It’s a shame that it is assumed U.S. citizens are evading taxes when they don’t want to report their accounts to a government that now owns our largest banks and thinks it knows best what salaries to pay employees. Dollar holders are clamoring to preserve their wealth, even if that might be a futile exercise given that all currencies are heading into the tank as the world economy falters and fizzles further. The US just decided to trash its currency in front of everyone and with a blatantly socialist agenda by the new guy, Obama. U.S. money saving foreign banks pretty much ruined the secret banking societies. Capital controls are around the corner as the dollar dies a slow death.

It ain’t taxes. It’s trying to preserve some form of wealth before the US government destroys it all, then comes looking for another drop of sweat to squeeze out of us.

Posted by Elizabeth | Report as abusive

Tax offenders can take many forms. The form I concern myself with is the income tax itself. Brought about to supply foreign banks 25% or more of my earnings indefinitely. If it were directly apportioned and used for health-care, education, infrastructure there would be no economic crisis to speak of, and no deficit, there would instead exist a massive unjustifiable windfall envied round the globe. But Alas, our income is taxed forever and for the benefit of a few private banking institutions.

I would concern myself with paying an income tax, it’s idea, it’s disturbing consequence, the men who wrote it into law, and the rude enforcers who keep vigil by it.

Isn’t this a moral argument? Should I or anyone deem this tax immoral we are obliged to annex it from our list of things to pay into. It’s bad enough the vipers head is so large, so imposing, should I feed it more? Am I not then funding my enemy? Really.

Posted by owen | Report as abusive

There is no such thing as a tax evader. Anyone who labels a person who tries to get out of letting the government steal his money a “tax evader” assumes that the government has a right to a part of a person’s labor. That’s pure collective thought, the belief that one man owns another man. I would like to point out too that the 16th Amendment is illegal; it was never ratified by 3/4 of the states. Yet our government acts as though it is legal, and everyone else assumes it’s legal, and acts accordingly. If we want to overthrow this wretched government of ours without bloodshed,all we would need to do is cut off their blood supply for a few days. The entire system would fall apart. We could then start the country over again.

Posted by Mufaso | Report as abusive

Huh … what makes people think they are any better than the rest of the US citizens ? we all pay taxes. The very country you want to hide your money in has a higher tax rate for their citizens than we do here in the US.There high taxes go to provide all their people with health care and RX when needed.If you dont want to pay taxes on your money do what my grandparents did and bury it in the back yard in a tin can or stuff your mattress with it.or would that interfere with your sleep ?
( lumpy mattress )
I make less than 1000.( thats one thousand )dollars a month,and live alone..
Hah…. and you worry about someone wanting you to pay your taxes like everyone else does…
Sometimes people need to look inside their selfs and wonder how they have come to care for no one else except their self…
I sure hope the children of all the people posting here have a better outlook toward humanity,because they are our next generation.somehow i feel they do,despite of the people that have atempted to raise them.

Posted by janey | Report as abusive

to Mufaso

16th Amendment unconstitutional? Dude, please show me exactly where and when the US Supreme Court declared the 16th unconstitutional. Oh, what? you can’t?

Matter of fact, the US courts have rejected every such specious argument from tax dodgers. The 16th amendment has been reaffirmed repeatedly.

So please, stop thin whining about the 16th Amendment’s constitutionality. Just because you think and wish the 16th Amendment is unconstitutional doesn’t make it so.

…and stop with the treasonous calls for sedition. I mean really, you think living in the US is soooo awful under Obama? Who has been in power ten months? Get a grip, you really want a revolution in the US?

And guess what, taxes are the price we pay to live in a civilized society. If you don’t like the US, then renounce your citizenship and take your money and find a better country to live in. Good Luck with that!

Posted by freethepresses | Report as abusive

Freethepresses, you sound just like the big-government type. You bow down to Caesar every chance you get and want others to believe the same. The United States has not always had an income tax. How did the country get along without it? Read your history; don’t just assume that because others say it’s true that it is so. The Supreme Court has never been able to demonstrate that there exists a law requiring individuals to pay an income tax. Those who have been convicted of so-called “tax evasion” were actually convicted of contempt of court. In other words, they were convicted of calling the judge and jury liars. Al Capone was never really convicted of tax evasion; the government assumed that he never payed taxes even though they couldn’t prove whether or not he had. The 16th Amendment was meant for corporations, not individuals. The rate of the income tax in 1913 was 1% of corporate profits. Some communists in Congress wanted the rate to be 6%, but they were laughed at because other congressmen said that there would be a revolt if the income tax went above 5%. Yes, I want revolution in America. We are 100 years past due.

Posted by Mufaso | Report as abusive

Mufaso ~ You talk like you still try to live in the 18th century, well our country has grown a lot and are proud of the progress we have made….
just like i said if you don’t want to pay your taxes then take your money and bury it in your back yard in a can or stuff your mattress with it. then take your chances with the government.
If you don’t want to abide by the laws here in the US then you are more than welcome to move to another country of your choice. there are plenty of them to choose from. matter of fact there my still be a couple of third world countries that may suit you just fine.
It’s not only the US that is tracking down tax evaders other countries are doing it to….

Posted by janey | Report as abusive

[...] a corollary: greater enforcement of tax evaders (Fortunately, this has already [...]

Offshore investment or not. You have to be allowed to invest your taxed money wherever you want. Evading payment of taxes where you reside will always be an illegal act.

Posted by offshore.ibc | Report as abusive