Tax Shelters: Why Israel Could Be the Next Switzerland
Published: Tuesday, 19 Jun 2012 | 3:38 PM ET Text SizeBy: Eamon Javers CNBC Washington, DC Correspondent
It looks like Israel is going to be the next Switzerland — at least as far as the Department of Justice’s investigation into offshore tax avoidance is concerned.
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Mike Kemp | Getty Images
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On June 14, the Department of Justice unsealed an indictment against three American tax preparers for helping clients avoid taxes by moving money to Israel.
The transgressions detailed in the indictment were relatively small-time. The indictment said the father and son duo of David and Nadav Kalai and their colleague David Almog at a firm called United Revenue Service helped several clients duck taxes by moving money to two Israeli banks, identified only as “Bank A” and “Bank B.”
Most of the financial transactions detailed were small — in the tens or hundreds of thousands of dollars. The men could not be reached for comment.
But the indictment revealed the existence of a grand jury that is almost surely going after much bigger fish. And the details provided in it appear to suggest that “Bank A” is Bank Leumi, whose private banking operation is headquartered in Tel Aviv, and “Bank B” is Bank Hapoalim, which also maintains its global private banking center in Israel’s second-biggest city.
Calls to Bank Leumi for comment were not returned. Bank Hapoalim provided CNBC with a statement from its chief spokesperson, Ofra Preuss, who said, “we read the press reports and are checking into them.”
To date, the U.S. government has successfully cracked the code of Swiss bank secrecy, forcing UBS, Switzerland’s largest bank, to turn over thousands of names of American account holders to investigators, and taking similar actions against other Swiss institutions.
Sources tell CNBC the new case is just the beginning of a potential series of indictments, which may snare some of the wealthy American clients who have hidden money in Israel, many for generations. That’s likely to be politically controversial, especially at a time when the U.S. and Israel are working closely together to contain a geopolitical threat from Iran.
Add to that the political sensitivity of an Obama administration Department of Justice in an election year targeting a group of clients of whom many are likely to be Jewish or have historical family ties to Israel.
“There are a substantial number of Americans with unreported assets in Israel,” said Scott Michel, a partner at the law firm Caplin & Drysdale who specializes in criminal tax fraud investigations. “I wouldn’t be surprised if it is on a par with Switzerland.”
Attorney Bryan Skarlatos, a partner at the firm Kostelanetz & Fink LLP, said that he has clients who are being questioned in the wide-ranging investigation into Israeli bankers.
“I have special agents asking questions about specific banks,” Skarlatos said. “They need evidence that somebody spoke to a banker and the banker had a sense that they were dealing with a U.S. person — they’re asking ‘did you give them your U.S. passport?’”Both Michel and Skarlatos spoke of allegations of cash-transfer banking, in which overseas bankers match up American clients who want to withdraw and deposit the same amount of cash with the foreign bank.The bankers appear in the U.S., typically at a hotel, and arrange for couriers to bring the cash to the hotel from the depositing customer, and later turn it over to the withdrawing customer, only later crediting each account for the transaction back in the foreign bank offices.It can be a dangerous way to avoid taxes, Skarlatos said.
“Some people don’t want to pay taxes, but they’ll risk their lives having someone show up on their doorstep with $3 million in cash,” he said.
In a highly technical and global economy, it’s getting more and more difficult for Americans to hide their assets overseas — and keep it hidden from the IRS. And that means the days of $3 million cash transfers may be coming to an end.
© 2012 CNBC.com
Tax Evasion Through Israel: IRS And Justice Department Indict Three Israeli-American Tax Preparers
Police say largest invoice forgery scheme exposed Months of covert investigation leads to arrest of nine suspects involved in distribution of fictitious invoices totaling NIS 3.5 billion, theft of NIS 600 million in taxes
Two dozen suspects arrested in 'largest tax fraud in Israeli history' Suspects allegedly issued NIS 3.5 billion in fictitious tax receipts.
IRS Hot On The Trail Of Hidden Bank Leumi & Other Israeli Accounts
US targets tax avoidance via Israeli banks - report "CNBC" reports that the US Department of Justice is cracking down on US citizens using Israeli banks to smuggle money to Israel.
Police say largest invoice forgery scheme exposed Months of covert investigation leads to arrest of nine suspects involved in distribution of fictitious invoices totaling NIS 3.5 billion, theft of NIS 600 million in taxes
Nine arrested in Israel's biggest ever tax fraud case The Tax Authority accuses the suspects in the fuel industry of distributing NIS 3.5 billion worth of fictitious invoices.
3 accused of using Israeli banks' European branches in alleged American tax scam According to the indictment, the three men allegedly helped clients in setting up undeclared accounts.
Tax Preparers Charged with Hiding Funds in Israeli Banks
Tax preparers charged using Israel bank for fraud
Exclusive: U.S. tax-evasion probe turns to Israeli banks
L'une des banques impliqués, la banque Leumi, possède aussi des parts importantes dans le système de prisons privées aux États-Unis, et est connectée à un segment des Républicains.
"(...) the second biggest bank in Israel, Bank Leumi---owned in part by the government of Israel itself---held a controlling interest in one of the big "American" corporations that reap vast profits by operating private prisons in the United States where thousands work at slave-labor wages while serving out their penal terms. This came even while Israel was outlawing private prisons on is own soil. (...) none of the many opponents of the private prison industries in America Jumped on the fact that Republican Vice President Dan Wayle, in fact, was chairman of the board of the Cerberus Global Investments, the New York-based holding company which, in 2008, purchased the Israeli government's interest in Bank Leumi, the Israeli bank that held the controlling interest in the "American" company operating private prisons in America. (...) Israelis are essentially in charge of maintaining a substantial control over America's penal system---and of a growing number of penal systems throughout the world where Israeli-owned companies are agressively engaged in setting up private prison systems (...)" (Michael Collins Piper, CONFESSIONS OF AN ANTI-SEMITE, 2011, p.348-349)
Du coup, Michael Collins Piper pose la question: Obama serait-il en train d'affaiblir ses rivaux (droite israélienne et conservateurs cashers républicains) avec ce coup de filet?
TUT Pod-Broadcast June 21 2012
Organized Jewish interests at war with each other–
–Right wing elements in Israel supporting Romney
–Left-wing elements support Obama
–The rest of us left hanging in the middle between war and peace/life and death.
We are joined by the ONE AND ONLY Michael Collins Piper to discuss this and other relevant topics.
Download Here
New Scandal: The Target of Obama’s Grand Jury
By Michael Collins Piper
Both supporters and opponents of President Obama are concerned about negative political repercussions likely to arise from an ongoing high-level criminal investigation.
It is not widely known that the Obama administration’s attorney general, Eric Holder, has upset some powerful people by launching a federal grand jury inquiry into wealthy Americans who have, according to a June 19 report from CNBC, “hidden money in Israel, many for generations” in violation of U.S. tax laws.
Two of Israel’s biggest banks—Bank Leumi and Bank Hapoalim—are reportedly central to the inquiry and note that in 2008 the Israeli government’s controlling interest in Leumi was purchased by Cerberus, theWall Street syndicate run by Stephen Feinberg, described by Israel’s Ha’aretz as “a New York Jew with a golden touch.”
Perhaps not coincidentally, two top Republicans—former Defense Secretary Donald Rumsfeld and former Vice President Dan Quayle—have links to Cerberus. Rumsfeld was investing in Cerberus, which profited from the Iraq war Rumsfeld promoted, as far back as 2001, whereas Quayle is Feinberg’s front man—the chairman of the board.
This controversial criminal investigation comes precisely when Obama’s GOP opponent Mitt Romney—a close friend of Israeli Prime Minister Benjamin Netanyahu—is waging an aggressive bid for the support in terms of campaignmoney and votes from wealthy American Jews.
Romney is not aiming for support from Forbes 400 billionaires, but from that second tier of multimillionaires who follow, a substantial percentage of whom are Jewish and quite influential in their respective states where polls show Obama has lost support in the traditionally Democratic Jewish base—perhaps enough to cost him key states in the Electoral College.
In a carefully crafted article, The New York Times of June 21 telegraphed the nature of Romney’s fundraising, noting the GOP candidate is focusing on those interested in “Israel, education and energy.” Driving home the point, the Times wrapped up the article by reiterating that “the campaign has organized much of its outreach around issues that energize contributors, like Israel,” citing praise for Romney from Philip Rosen, “a Romney donor active in Jewish causes.”
More subtly, the Times said Romney’s targeted contributors are “mid-level millionaires,” those who “run drycleaning chains and small industrial companies” and “car dealership owners,” realms where Jewish donors are prominent.
In case of any doubt about his loyalties, when the GOP candidate held a gathering for big donors at an exclusive retreat in Utah, visitors were addressed by columnist William Kristol. The well-known commentator is a longtime advocate for Romney’s friend Netanyahu and longtime functionary of the Rupert Murdoch media empire bankrolled by the Rothschild family (whose own Lady Lynn de Rothschild is a fervent Obama critic and Romney supporter).
The prime mover behind the selection of Sarah Palin as John McCain’s running mate in 2008, Kristol touts retiring Sen. Joe Lieberman (a close McCain friend) as the likely secretary of state in a Romney administration, replacing Hillary Clinton.
Those who favor a “muscular” American foreign policy and military ventures abroad—a far cry from the nationalism and non-interventionism advocated by Rep. Ron Paul—would be pleased by Lieberman at the State Department helm.
——
Michael Collins Piper is an author, journalist, lecturer and radio show host. He has spoken in Russia, Malaysia, Iran, Abu Dhabi, Japan, Canada and the U.S. He is the author of Final Judgment, The New Jerusalem, The High Priests of War, Dirty Secrets, My First Days in the White House, The New Babylon and others. You can order any of these books with a credit card by calling AFP toll free at 1-888-699-6397.
Big Secret Behind IRS Scandal
By Michael Collins Piper
20 May 2013
michaelcollinspiper.podbean.com
Jumping for joy, some patriots are now convinced that those who control the big media have “gone conservative.”
The patriots point out that the
traditionally “liberal” media is dumping on the Obama administration and
expressing disgust that the IRS was targeting tea party and
conservative groups.
This indeed may be the first time
in history the media has been so concerned about the mistreatment of
such groups that have always been subject to special IRS scrutiny.
And then there’s the scandal
enveloping Attorney General Eric Holder over the Justice Department’s
seizure of journalists’ phone records.
“Things are so bad,” patriots say, “even the media has come around and realizes how rotten Obama and Holder and the IRS are.”
Well, it’s not quite that simple.
If nine months ago you were
carefully reading the Aug. 13, 2012 issue of American Free Press, you
wouldn’t be surprised at the media’s disdain for the president, his
attorney general and the IRS.
Here’s what AFP reported, foreshadowing the scandals that some say could lead to the impeachment of the president:
New Scandal: The Target of Obama’s Grand Jury
Both supporters and opponents of President Obama are concerned about negative political repercussions likely to arise from an ongoing high-level criminal investigation.It is not widely known that the Obama administration’s attorney general, Eric Holder, has upset some powerful people by launching a federal grand jury inquiry into wealthy Americans who have, according to a June 19 report from CNBC, “hidden money in Israel, many for generations” in violation of U.S. tax laws.
Two of Israel’s biggest banks—Bank Leumi and Bank Hapoalim—are reportedly central to the inquiry and note that in 2008 the Israeli government’s controlling interest in Leumi was purchased by Cerberus, the Wall Street syndicate run by Stephen Feinberg, described by Israel’s Ha’aretz as “a New York Jew with a golden touch.”
Since
AFP first focused on that little-noticed grand jury—predicting trouble
for Obama and Holder as a consequence of this inquiry— the IRS-DoJ
investigation actually escalated.
On September 16, 2012, Reuters reported another Israeli bank, Mizrahi-Tefahot, was now on the list of financial institutions under scrutiny by Holder and the IRS.
Earlier, on June 20, Forbes.com assessed the situation, pointing out
that “U.S. citizens with accounts in Israel may feel a little less
secure,” since, Forbes noted, “the Justice Department and IRS announced
the indictment of three Israeli-American tax preparers charged with
helping Americans hide money in Israeli banks.” Charged were a father
and son who had dual citizenship in Israel and the United States, along
with an Israeli citizen living in the U.S.
In fact, according to
prominent New York tax attorney Asher Rubinstein: “Many American Jews
maintain bank accounts in Israel for various reasons.” But while such
accounts are legal, problems arise if those accounts are used to avoid
U.S. taxes.
On April 12, the DoJ announced
a Jewish woman in California, Guity Kashfi, had pleaded guilty on
criminal charges in relation to her Israeli accounts, this on the heels
of another Justice prosecution of a Jewish man in California, Zvi
Sperling, for maintaining a secret Israeli account.
In the
wake of all of this, a vocal congressional voice for Israel,
Representative Sander Levin (D-Mich), issued a sharply-worded letter to
the IRS demanding to know if pro-Israel groups had been targeted by the
IRS along with the tea party. In fact, according to the May 19 issue of the influential Jewish newspaper The Jewish Press: “Pro-Israel groups were targeted.”
All of
this—at a time when the president seems disinclined to attack Iran or
invade Syria (projects of special concern to Israel)—might explain why
the big media (largely controlled by families and financial groups that
are firm supporters of Israel) has begun savaging the president, his AG
and the IRS.
- See more at: http://americanfreepress.net/?p=10645#sthash.QaMkDRda.dpuf
Since
AFP first focused on that little-noticed grand jury—predicting trouble
for Obama and Holder as a consequence of this inquiry— the IRS-DoJ
investigation actually escalated.
On September 16, 2012, Reuters reported another Israeli bank, Mizrahi-Tefahot, was now on the list of financial institutions under scrutiny by Holder and the IRS.
Earlier, on June 20, Forbes.com assessed the situation, pointing out
that “U.S. citizens with accounts in Israel may feel a little less
secure,” since, Forbes noted, “the Justice Department and IRS announced
the indictment of three Israeli-American tax preparers charged with
helping Americans hide money in Israeli banks.” Charged were a father
and son who had dual citizenship in Israel and the United States, along
with an Israeli citizen living in the U.S.
In fact, according to
prominent New York tax attorney Asher Rubinstein: “Many American Jews
maintain bank accounts in Israel for various reasons.” But while such
accounts are legal, problems arise if those accounts are used to avoid
U.S. taxes.
On April 12, the DoJ announced
a Jewish woman in California, Guity Kashfi, had pleaded guilty on
criminal charges in relation to her Israeli accounts, this on the heels
of another Justice prosecution of a Jewish man in California, Zvi
Sperling, for maintaining a secret Israeli account.
In the
wake of all of this, a vocal congressional voice for Israel,
Representative Sander Levin (D-Mich), issued a sharply-worded letter to
the IRS demanding to know if pro-Israel groups had been targeted by the
IRS along with the tea party. In fact, according to the May 19 issue of the influential Jewish newspaper The Jewish Press: “Pro-Israel groups were targeted.”
All of
this—at a time when the president seems disinclined to attack Iran or
invade Syria (projects of special concern to Israel)—might explain why
the big media (largely controlled by families and financial groups that
are firm supporters of Israel) has begun savaging the president, his AG
and the IRS.
Michael Collins Piper
is an author, journalist, lecturer and radio show host. He has spoken
in Russia, Malaysia, Iran, Abu Dhabi, Japan, Canada and the U.S.
Since
AFP first focused on that little-noticed grand jury—predicting trouble
for Obama and Holder as a consequence of this inquiry— the IRS-DoJ
investigation actually escalated.
On September 16, 2012, Reuters reported another Israeli bank, Mizrahi-Tefahot, was now on the list of financial institutions under scrutiny by Holder and the IRS.
Earlier, on June 20, Forbes.com assessed the situation, pointing out
that “U.S. citizens with accounts in Israel may feel a little less
secure,” since, Forbes noted, “the Justice Department and IRS announced
the indictment of three Israeli-American tax preparers charged with
helping Americans hide money in Israeli banks.” Charged were a father
and son who had dual citizenship in Israel and the United States, along
with an Israeli citizen living in the U.S.
In fact, according to
prominent New York tax attorney Asher Rubinstein: “Many American Jews
maintain bank accounts in Israel for various reasons.” But while such
accounts are legal, problems arise if those accounts are used to avoid
U.S. taxes.
On April 12, the DoJ announced
a Jewish woman in California, Guity Kashfi, had pleaded guilty on
criminal charges in relation to her Israeli accounts, this on the heels
of another Justice prosecution of a Jewish man in California, Zvi
Sperling, for maintaining a secret Israeli account.
In the
wake of all of this, a vocal congressional voice for Israel,
Representative Sander Levin (D-Mich), issued a sharply-worded letter to
the IRS demanding to know if pro-Israel groups had been targeted by the
IRS along with the tea party. In fact, according to the May 19 issue of the influential Jewish newspaper The Jewish Press: “Pro-Israel groups were targeted.”
All of
this—at a time when the president seems disinclined to attack Iran or
invade Syria (projects of special concern to Israel)—might explain why
the big media (largely controlled by families and financial groups that
are firm supporters of Israel) has begun savaging the president, his AG
and the IRS.
Michael Collins Piper
is an author, journalist, lecturer and radio show host. He has spoken
in Russia, Malaysia, Iran, Abu Dhabi, Japan, Canada and the U.S.
On September 16, 2012, Reuters reported another Israeli bank, Mizrahi-Tefahot, was now on the list of financial institutions under scrutiny by Holder and the IRS.
Earlier, on June 20, Forbes.com assessed the situation, pointing out that “U.S. citizens with accounts in Israel may feel a little less secure,” since, Forbes noted, “the Justice Department and IRS announced the indictment of three Israeli-American tax preparers charged with helping Americans hide money in Israeli banks.” Charged were a father and son who had dual citizenship in Israel and the United States, along with an Israeli citizen living in the U.S.
In fact, according to prominent New York tax attorney Asher Rubinstein: “Many American Jews maintain bank accounts in Israel for various reasons.” But while such accounts are legal, problems arise if those accounts are used to avoid U.S. taxes.
On April 12, the DoJ announced a Jewish woman in California, Guity Kashfi, had pleaded guilty on criminal charges in relation to her Israeli accounts, this on the heels of another Justice prosecution of a Jewish man in California, Zvi Sperling, for maintaining a secret Israeli account.
In the wake of all of this, a vocal congressional voice for Israel, Representative Sander Levin (D-Mich), issued a sharply-worded letter to the IRS demanding to know if pro-Israel groups had been targeted by the IRS along with the tea party. In fact, according to the May 19 issue of the influential Jewish newspaper The Jewish Press: “Pro-Israel groups were targeted.”
All of this—at a time when the president seems disinclined to attack Iran or invade Syria (projects of special concern to Israel)—might explain why the big media (largely controlled by families and financial groups that are firm supporters of Israel) has begun savaging the president, his AG and the IRS. -
All of
this—at a time when the president seems disinclined to attack Iran or
invade Syria (projects of special concern to Israel)—might explain why
the big media (largely controlled by families and financial groups that
are firm supporters of Israel) has begun savaging the president, his AG
and the IRS. - See more at:
http://americanfreepress.net/?p=10645#sthash.QaMkDRda.dpuf
New IRS Targets This upcoming tax season entails some unpleasant surprises for United States citizens who either live in Israel or who hold bank accounts there.
Rappel: Coup de filet de l'IRS contre l'évasion fiscale vers les banques israéliennes
Plus d'infos:
Wealthy Zionists behind US financial meltdown: Analyst
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Les grandes fortunes familiales qui contrôlent la finance et les affaires
Qui contrôle les États-Unis?