What was a contentious issue during the campaign will likely remain so. Obama said that higher taxes on the rich will not stifle economic growth and that both tax hikes and spending cuts are needed to achieve long-term deficit reduction. Whether he can get Republicans to agree to any tax hikes may be his…
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Uncertainty for 2012 Year-End Tax Planning
Grant Thornton is advising US taxpayers on some possible year-end tax planning strategies, while warning that this is one of the most uncertain quarters in American tax history. They predict that dramatically higher taxes are probably coming no matter who is returned to the White House this week. Tax planning is never a breeze, but it’s…
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Bahamas, Panama and other Countries cannot comply with FATCA?
Banks in certain financial centres - especially Panama and the Bahamas - will have serious difficulties in complying with the US Foreign Accounts Tax Compliance Act. The Foreign Account Tax Compliancy Act, known as FATCA, is causing problems for banking jurisdictions such as Cayman Islands, Panama or the Bahamas. Although the law is targeted at…
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Tax Ruling Protects Transfers of Family Businesses
The recent US Tax Court ruling in Wandry v Commissioner, T.C. Memo. 2012-88, March 26, 2012 of Internal Revenue implies that a gift of a share in the business is always tax-free if it is specified to fall within the gift tax exemption, even if the IRS later challenges the business valuation. The taxpayers were advised…
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