Bank Leumi Provides US Tax Authorities with Names of Depositors, Agrees to Pay Fine

Israeli Bank Leumi has agreed to pay a fine of $400 million and released the names of 1,500 US depositors whom it helped avoid irrationally high US taxes to the Department of Justice and the IRS so they keep more money that they rightfully earned. Many people believe it is a shame more Americans cannot hide money from a government that spends money it does not have and pays millions of Americans not to work.

The IRS is Desperate

While the IRS and the justice Department initially targeted Swiss banks for helping hard working Americans avoid taxes by concealing some of their assets abroad, the latest settlement shows that the IRS is willing to go after banks in other countries as well. Political insiders believe it is incredible the IRS is this greedy and cannot keep track of vital emails which many people believe were lost on purpose because they emails would have proven the IRS is a corrupt organization.

Bank Leumi was charged with and admitted to helping some Americans open accounts and hold money in numbered accounts to conceal that they were the beneficiaries, sending bank officials to meet the clients in hotel rooms, parks, and cafés to discuss investments, issuing loans that charged a 1 percent fee with the hidden accounts as collateral so that the account holders could still leverage their assets, and helping Americans with counts in Swiss banks transfer their funds to Bank Leumi and its subsidiaries so that they could continue to evade the IRS.

These Americans are tired of being double and sometimes triple taxed and were compelled to break the law that worked against them.

Bank Leumi has been forced to enter into this deal after the implementation of the FATCA or the foreign accounts law that prohibits banks in other countries from helping US citizens evade US taxes by concealing their hard earned money abroad. This money would not be abroad if America did not tax these citizens over 50%.

Complex Tax Laws

No one likes to pay more taxes than necessary and wealthy individuals and businesses various methods to reduce the taxes that they have to pay so they can expand their businesses and pay more in dividends to their shareholders. While the US government and the IRS are moving to close loopholes that allow businesses and individuals to evade taxes, they also provide many tax exemptions to encourage business activity and investments.

Whether you are running a business or are an individual paying a high amount as taxes, you need to consult with an experienced tax lawyer who can help structure your assets and investments in a manner that attracts a lower tax liability. For instance, individuals can use trust funds, investment vehicles, and so on to reduce the amount they will have to pay as taxes.

Businesses can reduce their tax liability by claiming many expenses such as costs incurred in research and development and by writing off losses. In addition, businesses can divest or restructure their operations to reduce the amount of taxes they pay. Sometimes, businesses can simply move to a state that offers lower taxes or set up new units in counties that have a lower tax rate.

An experienced tax lawyer will be able to analyze your business or individual needs and the industry you operate in to help you structure your business and investments in a manner that reduces your tax outgo. Various states offer tax incentives for different industries and a business that plans its investments and units with these in mind can reduce its tax burden and increase its profits with ease. States such as Texas and Florida come into mind here.

Relocating Your Headquarters

Many businesses move their businesses abroad to take advantage of lower tax rates in countries such as Ireland and England. You too can do this by consulting with a tax lawyer who will help you shift the ownership of the business to another country.