|
You don't just renounce American citizenship at the drop of a hat. For the first ten years after you repatriate, you can still be held liable for US income taxes... and if you don't pay them, you can be arrested and charged for willful tax evasion...
It's very much a catch-22 -- people who leave the country because they are running businesses that aren't considered legal here -- poker, gaming, sportsbooks, etc -- don't generally pay taxes to the US on their so-called ill gotten gains since it would be an admission (unless very carefully structured) of their guilt by having this income. They would also be in a bad spot when they were called in for an audit since they can't come into the states without being arrested.
After years of non-payment of taxes for income like this, the amounts owed, including interest and penalties, is a huge chunk of change for even the most successful person (especially when parting with the money, regardless of your saving habits) and I don't think you'll see anyone stepping up to pay all their back taxes on their so-called illegal income.
Thus you really do become guilty of breaking a law whether you intended to or not.
|