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Originally Posted by germ
if i understand this properly, they're not going after people trying to keep money in paypal to avoid taxes. they're going after people that have paypal accounts tied to the offshore bank accounts they're keeping their money in, to evade taxes.
since the countries where the accounts are located wont cooperate, paypal (who has the numbers to the accounts, and the persons personal info) will.
if thats really whats going on, this is only going to cause problems for anyone using tax havens and stupid enough to attach their anonymous bank accounts to a US based company that keeps records and has a history of turning info over to anyone and everyone that asks for it.
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Sure... they are after undeclared revenue from whatever source.
The US is a bit of an exception as regards "offshore" simply because US citizens by law are obliged to file returns annual to the IRS - whether they are resident in the US or not. The other factor is, for a US citizen, even if they are not resident within the US, - there is still a legal requirement to declare "foreign interests". This totally screws up any concept of "offshore" which is actually mean't (normally) to be private and failure to declare and sign the paperwork is going to be an obvious problem.
You are 100% correct in the instance of any individual who is a US citizen and who transfers funds to any US financial institution and who does not declare that revenue is up shit creek.
There is only (na.. not only, but "almost only"
) one way to be legitimately conduct biz offshore is to actually live offshore. An additional requirement, tho only applies to US folks, is they can't remain US citizens (because of the obligations under US law re tax declarations). Other countries are OK with this - it's just a matter of being non-resident and no need to give up citizenship.
PS.. Hate that expression "tax havens" - it's a kinda term used by onshore folks to try and defraud revenue collectors. Smells very amateur