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Executive Summary – Paris and Berne signed an OECD agreement to share tax information. A few days later the Swiss Banks that had a presence in France released the names of 3000 French people with bank accounts in Switzerland to the French. The combined assets in the account are about $4,300,000,000. The French are not revealing which banks gave the people up. They are also not revealing the names they got. They are doing a terror campaign to get all their French citizens to pay back taxes and penalties on offshore accounts by December. When the Swiss do it they really do it. Wonder who would still buy Swiss chocolate these days.
Swiss Watches – I would say a large amount of people who buy Swiss watches use offshore banks. I’ll bet people stop buying Swiss watches as a result of all this bank secrecy betrayal. The brands are as follows: Rolex, Pate Philippe, Breitling, Audemars Piaget, Cartier, Blancpain, and other lesser brands. They probably didn’t consider that the Swiss are getting a real bad name with the wealthier people now.
Tax Treaty Defense – First mistake the French folks made was using Switzerland, which has shown itself to be an unreliable jurisdiction. Second mistake was using Swiss banks that had a presence in France their home country. Using an offshore bank with no presence in any other country is getting to be mandatory. We have such banks, inquire. Fourth mistake was not closing their accounts before the treaty was signed and in effect. If they closed their accounts they would not be covered by the new treaty and their old closed accounts would have still been protected under the old laws.
A country cannot make a new law that is retroactive. That is unconstitutional. This leaves room for lawsuits for resulting damages and all sorts of constitutional issues. Lawsuits could also be brought in the Hague Court under international law. Close your accounts before the country you bank in signs these treaties. Then do not sign on your offshore bank account in the future or get an identity from another country not taxing offshore income. Close your account and buy gold, buy real estate, call us do something except sitting and waiting for doom and gloom.
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