The Thailand Revenue Department has announced that Thailand and the USA have preliminarily agreed to a tax information sharing agreement. Pursuant to the agreement the Thai Revenue Department and the US Treasury will be required to share the financial information of both countries including banks, mutual funds and life insurance firms.
Thailand’s provision of information would assist with the US’s collection of information with regard to the enforcement of the Foreign Account Tax Compliance Act (FACTA).
FACTA is a US federal law which requires Americans, including those living abroad to file an annual report to the US Treasury Department, regarding any financial accounts or assets held in foreign countries.
There is no exception in FACTA for American expatriates who reside outside of the USA. In other words, US expats living abroad must provide a detailed accounting of their financial accounts and assets held in their country of residence (as well as other non-US assets).
Another 80 countries are in talks with the US regarding similar agreements for tax information sharing.
A US expat who was residing in Thailand has pled guilty to fleeing the United States in 2007 to avoid paying child support according to The United States Attorneys Office, Western District Missouri.
Randy Lee Essary, admitted that he has failed to pay any court-ordered child support for his son for more than eight years and owes $164,891.
Essary now faces a sentence of up to two years in federal prison without parole, plus a fine up to $250,000 and an order of restitution.
The case is significant insofar as it demonstrates that fleeing the US with the intent to avoid paying court ordered child support is a serious case and will be prosecuted by the US Federal authorities. Fleeing the US to avoid child support is a separate offense from the failure to pay child. The feeling case is covered by Federal jurisdiction,. whereas in most cases, child support is a state legal matter.
Read the full report here
It has been reported by CNN Money that more Americans are giving up their passports.
Some are blaming the new disclosure law aimed to eradicate tax evasion, whilst expats say they are sick are completing two tax returns. The US requires all of its citizens to pay income tax regardless of where they live or where the income was earned.
The increase comes as the U.S. prepares to implement the Foreign Account Tax Compliance Act, a new law that requires foreign institutions to report all assets owned by Americans.
Read the full story here
US Thailand Double Taxation Treaty
Foreign Account Tax Compliance Act (FATCA).
U.S. Taxes and Tax Law: An Expat’s Bane?
International marriages and divorces can become complicated.
Mrs Saward had met and married her British husband in Spain, but due to Spain’s unfavourable laws regarding split of assets, sought to divorce her husband in the UK.
Although a decree nisi was granted at first instance, it was reversed when Mr Saward appealed, arguing the UK courts had no jurisdiction to hear the proceedings as he was no longer a UK resident.This shows how important it is to see specialised legal advice if you are considering entering an international marriage and how important it is to protect your assets.
There are issues concerning conflicts of law and the applicability of those laws. In the event of a divorce, where the marriage was registered will have an effect on which jurisdiction the divorce proceedings are heard.
For example, in Thailand international marriages your assets will be better protected as your marriage and Thailand prenuptial agreement are registered in Thailand. Prenuptial agreements are not registered in Western countries.
Marriage and Divorce in Thailand: When Love Turns Deadly
Thailand Marriage and Divorce: Thai Dream or Foreigner’s Nightmare?