Q EXPERTS' BLOG
Ireland and FATCA – “Going a step further”
If you want to be free, there is but one way; it is to guarantee an equally full measure of liberty to all your neighbors. There is no other.
Irish and American officials today signed an agreement whereby Ireland has pledged to collect data on accounts in Irish financial institutions held by Americans, and provide it to the US tax authorities. As reported, details of the so-called intergovernmental agreement between the two countries were hammered out earlier this month, as the US has increasingly sought the help of foreign governments in its enforcement of the Foreign Account Tax Compliance Act, a piece of US legislation that is aimed at cracking down on US citizens who use foreign accounts to avoid paying US taxes. While existing Ireland-US tax agreements already provide for the exchange of information for tax purposes, the agreement signed today “goes a step further by providing for the automatic exchange of more detailed information on an annual basis”, according to a statement released today by the Irish Finance Ministry, and posted on its website. In that statement, Michael Noonan, Ireland’s Minister for Finance, noted the fact that Ireland was one of the first countries in the world to formally sign up to the FATCA regime, and predicted the agreement would “have a positive impact on trade and investment between Ireland and the United States”, while also providing “certainty and clarity to Irish and American financial institutions” that are interested in doing business with one another. Via...International Adviser.
So there we have it.
Not content with current tax information agreements, the US is taking things “a step further” by providing the automatic exchange of more detailed information on an annual basis. Since there are no protest riots in the streets (or any resistance at all as far as I can tell!) you can bet that there are more steps to come.
Bit by bit, little by little. Death by a thousand cuts.
The good news is that you don’t have to rely on other people to fix this for you. You don’t have to wait for the next election hoping that “this time they get it right”.
You can dramatically mitigate your personal and financial risk yourself by simply by doing what others are not.
Start by learning the real definition of diversification (hint: if all your assets are held in one country, you are NOT diversified!). Learn about high level living strategies such as the Five Flags Theory. Challenge your beliefs about what money is and isn’t. Make friends with people who have this sort of knowledge.
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