Mark Nestmann on US Foreign Investment Taxation

By: Gordon Long | Sun, May 31, 2015
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Mark Nestmann

Special Guest: Mark Nestmann - Since 1990 has helped hundreds of clients seeking wealth preservation and international tax planning solutions. He is the author of many books and reports dealing with these subjects and a popular public speaker. Beginning his career as an investigative journalist in 1983, Nestmann now serves as President of The Nestmann Group, Ltd., an international consultancy assisting individuals to achieve their wealth preservation goals. He also is the Tax and Asset Protection editor for The Sovereign Society. Nestmann divides his time between offices in Vienna, Austria and Phoenix, Arizona. In 2005, Nestmann was awarded a "Master of Law" (LL.M.) degree in international tax law at the Vienna University School of Economics and Business Administration in Vienna, Austria. Nestmann's research and thesis dealt with the subject of "exit taxes" imposed on individuals who change their tax residence from one jurisdiction to another.

26 Minutes

After establishing a noted career in international investment, Mark Nestmann left the US for three years to study for his "Master of Law" (LL.M.) degree in international tax law at the Vienna University School of Economics and Business Administration in Vienna, Austria. This is an indication of the seriousness and rigor with which Mark tackles issues in International Taxation for his high net worth clients. He shared his views with the FINANCIAL REPRESSION AUTHORITY in this exclusive interview.


Foreign Account Tax Compliance Act - FATCA

Passed in 2010 and hidden as part of a "Military Pensions Act", no one fully understood what it meant or paid much attention to it.

"The Foreign Account Tax Compliance Act, is one of the most arrogant and one-sided laws ever passed by Congress. The idea behind FATCA, which Congress enacted in 2010, is simple: Demand that other countries enforce America's imperialistic tax laws. And do so by the confiscation of foreign assets, if necessary." - Why FATCA Is a Train Wreck Waiting to Happen - Mark Nestmann

"What is happening is foreign financial institutions (which is defined very broadly in the act) under the law are required to identify their US clients and force their US clients to self identify and turn over information to the IRS."

"If the banks or countries don't comply then 30% of their US source income (and in some case 30% of source gross sales revenues) of things like stocks, bonds, CDs etc are withheld - this is a pretty big number! The only way banks can avoid the 30% withholding tax is to essentially act as unpaid IRS informants."

"Not surprisingly, FATCA and numerous other laws that require FFIs to enforce US money laundering, anti-terrorism, and securities regulations have led most of these institutions to fire their US clients. Perhaps one in 10 - and possibly fewer - non-US banks still permit US citizens or permanent residents to open accounts. That leaves little choice for Americans but to deal only with banks that have agreed to toe the IRS line." - Why FATCA Is a Train Wreck Waiting to Happen - Mark Nestmann

"Non US persons investing in the US are also effected by FATCA. If their foreign bank don't comply their US investment is whacked 30% as well - It isn't just Americas who should care about this but basically everyone in the world!"

This is not a good time to have unreported financial accounts in countries that have already signed FATCA agreements with the US, or are about to. If you're in this situation, you might want to seriously consider retaining a tax attorney to enroll you in the IRS's latest Offshore Voluntary Disclosure Program.


Passive Foreign Investment Company - PFIC

"PFIC is another aspect of Financial Repression and aspect of regulatory restrictions on investment choices."

"If you have an investment vehicle registered outside the US the IRS will consider it a PFIC. As an example of the way this tax is very unfavorable is that unless an offshore Mutual Fund qualifies as a US Mutual Fund when you sell it (or deemed to sell it) you have to file not only a return on the income by also a "throwback" interest charge for EVERY YEAR you held the fund. Additionally the tax rate is computed at the highest marginal rate in that year!"

"What happens is that people who held offshore mutual funds for a long period of time windup losing every penny of income in that fund because it is paid out in taxes and interest penalties."

... there is much, much more in this 26 minute video interview covering:

 


 

Gordon Long

Author: Gordon Long

Gordon T. Long
Publisher - LONGWave

Gordon T. Long

Gordon T. Long has been publically offering his financial and economic writing since 2010, following a career internationally in technology, senior management & investment finance. He brings a unique perspective to macroeconomic analysis because of his broad background, which is not typically found or available to the public.

Mr. Long was a senior group executive with IBM and Motorola for over 20 years. Earlier in his career he was involved in Sales, Marketing & Service of computing and network communications solutions across an extensive array of industries. He subsequently held senior positions, which included: VP & General Manager, Four Phase (Canada); Vice President Operations, Motorola (MISL - Canada); Vice President Engineering & Officer, Motorola (Codex - USA).

After a career with Fortune 500 corporations, he became a senior officer of Cambex, a highly successful high tech start-up and public company (Nasdaq: CBEX), where he spearheaded global expansion as Executive VP & General Manager.

In 1995, he founded the LCM Groupe in Paris, France to specialize in the rapidly emerging Internet Venture Capital and Private Equity industry. A focus in the technology research field of Chaos Theory and Mandelbrot Generators lead in the early 2000's to the development of advanced Technical Analysis and Market Analytics platforms. The LCM Groupe is a recognized source for the most advanced technical analysis techniques employed in market trading pattern recognition.

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Gordon T. Long is a graduate Engineer, University of Waterloo (Canada) in Thermodynamics-Fluid Mechanics (Aerodynamics). On graduation from an intensive 5 year specialized Co-operative Engineering program he pursued graduate business studies at the prestigious Ivy Business School, University of Western Ontario (Canada) on a Northern & Central Gas Corporation Scholarship. He was subsequently selected to attend advanced one year training with the IBM Corporation in New York prior to starting his career with IBM.

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