Why stash money in the Caymans and Swiss bank accounts if there's no tax advantage as Romney claims?

[bigtree]

Romney strongly refuted allegations that he evaded taxes by having account in Swiss banks or overseas. “There was no reduction, not one dollar of reduction in taxes, by virtue of having an account in Switzerland or a Cayman Islands investment.

Those dollars of taxes remained exactly the same. There was no tax savings at all,” he said. “And the conduct of the trustee in making investments was entirely consist with US law and all the taxes paid were those legally owed and there was no tax savings by virtue of those entities,” he asserted. “But they’re trying to make that seem like it’s some a unsavory action. And, frankly, all the taxes were paid exactly as owed and there was no tax savings by virtue of having that vehicle,” Romney said.

http://www.dayandnightnews.com/2012/08/romney-lashes-out-at-obamas-divisive-campaign/`

________________

CNN Anderson Cooper from July:

COOPER: So, Ali, what do you make of this? Beyond some potential tax advantages or privacy advantages, is there any legitimate reason to have investments in the Cayman Islands?

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: I have been making phone calls on this. And I have been trying to investigate.

Generally speaking, not. There are legitimate reasons why you would have offshore accounts and offshore investments and blind trusts. None of them seem to suit the profile of a guy like Mitt Romney. You can't not declare your holdings. You can't not declare your income.

So it does seem to be that when he established these things, being rich wasn't sort of public enemy number one in America. And this is probably the worst time to have to disclose all this money that he's got. So they have sort of been trying to keep this under the radar. And now it's just floating above the valid, but, no, no valid reason, no real savings of money or payable tax.
http://transcripts.cnn.com/TRANSCRIPTS/1207/10/acd.01.html

[ProSense]

1. He's lying. Why hide it?

Why not release his tax returns?

Why make up a bunch of bullshit lies?

Romney: Releasing tax returns would violate my religious privacy
http://www.democraticunderground.com/10021193031

[pinto]

4. Yeah. He may have wanted to hide / downplay his tithe, as well.

A lot of the tax stuff is over my head. I look to those with big money manipulation knowledge for input.

[ProSense]

7. I had ignored that, but

given that his tithe is supposed to be a percentage, hiding money would certainly impact the percentage.

[pinto]

2. Don't know enough about offshore investment, blind trusts, etc. to comment, but Ali may be right -

Mitt wanted to hide his wealth, got caught in the sleight of hand and is stonewalling. Sure looks shady, though.

[ProSense]

5. Romney's lie doesn't

hold water...amnesty:

Experts’ Best Guesses On Romney’s Swiss Bank Account

Brian Beutler

<...>

Romney’s unwillingness to disclose more information about his finances has fueled speculation that Romney used the account to hide money from the IRS, and may have even had to avail himself of an amnesty program that allowed U.S. owners of certain Swiss bank accounts to come clean to the government without facing legal recriminations. (The Romney camp is now specifically denying that his UBS account was connected to the IRS investigation and the amnesty program.)

But even if Romney paid his taxes as required, the question becomes, Why would a person with national political ambitions open himself to the political risks associated with having a Swiss bank account in the first place? Plus there’s another hitch: Why run the risk for an account that was relatively small? It was open on behalf of Ann Romney’s blind trust in 2003, held about $3 million, and generated a mere $1,700 of interest in 2010. Big bucks for ordinary folks, but not for Romney.

<....>

Theory #1: Romney was actually helping some of Bain’s foreign investors avoid U.S. taxes and scrutiny — not himself.

<...>

Theory #2: Romney and his financial advisers lost track of the Swiss account.

- more -

http://talkingpointsmemo.com/archives/2012/07/experts_best_guesses_on_romneys_swiss_bank_account_1.php

[pinto]

13. Thanks for the info.

[global1]

3. So All These Years We Were Being Told About Stashing One's Money Offshore For Tax Advantages.....

that info was false? You mean there is no tax advantage to putting money in Swiss Banks or the Cayman Islands? They were lying to us? I always thought that this was to shelter one's money from U.S. taxes. Rmoney just did this for kicks? Did he like the fact that it sounded cool in his 1% circles that he stashed his money in these accounts? Who is he trying to kid?

[Brewinblue]

18. U.S. Tax Law

does not permit a citizen or resident to escape taxation on income, of any kind, merely because the source is foreign. If there is tax paid in the foreign jurisdiction, which would not be the case in Bermuda or Cayman Islands since no taxes are levied there, the taxpayer may qualify for a foreign tax credit for the amount paid in the foreign jurisdiction.

Romney is a tax cheat, I'm convinced of that, I'd bet anything that he did not report, or under reported, his offshore income.

[Viva_Daddy]

6. Romney: "And if you believe that, I've got a bridge to sell you."

[spanone]

8. liar. why do it then?

[Angry Dragon]

9. If Willard released his tax returns we could decide if he is lying or not

very simple

[dkf]

10. Swiss franc outshines rival haven currencies

http://www.ft.com/intl/cms/s/0/7164f4da-8c6e-11e0-883f-00144feab49a.html#axzz24g3oVDR5

From the dollar to the yen, there used to be an array of currencies vying for haven status. Now there is just one; the Swiss franc.

Amid heightened fears over eurozone sovereign debt and increasing concerns about the health of the US economy, investors have flocked to the safety of the Swiss currency with some commentators forecasting that it could surge to parity against the beleaguered euro.

[ProSense]

11. So

"investors have flocked to the safety of the Swiss currency"

...investors are the same as tax cheats? Anmesty isn't a program for investors, it's a program for tax cheats.

[dkf]

16. Moving funds offshore can be for more than tax reasons.

I've been wondering how I am supposed to protect my savings if this system collapses but I don't have enough to move offshore. Moreover I need to make my assets grow or it won't work out anyway. So I am stuck with the results of this economy.

If I had enough I'd move some funds and assets in every safe haven there is so that if it all goes down there may be some assets that are worth something.

Gold is the other safe haven but with the Republicans talking about the gold standard...

http://www.zerohedge.com/news/guest-post-gold-standard-easier-said-done

This country is headed for insolvency or rampant inflation thanks to the decisions our politicians are making. Both Democrats and Republicans aren't giving us viable solutions. So the smart thing for rich people is to diversify.

[nanabugg]

12. Why does he hate America?!! Does he know something about US banks that only he and his ilk know?

Does he not trust US banks? Is he able to accomplish something using foreign banks that might be illegal here in the US? Seems to me his remarks raise more questions than they answer.

[cbdo2007]

14. I like that he brought this up to overshadow the convention this week. hahahahahaha

If he wants the public to forget about his tax returns and taxes he needs to stop talking about it.....don't tell him that though, or he might just do it.

[ProSense]

15. He's being forced to

by the Gawker documents, which is why he immediately wrote his WSJ composition.

LOL! Mitt Romney: What I Learned at Bain Capital (WSJ op-ed)
http://www.democraticunderground.com/10021189386

Lid blowing off Romney tax secrecy
http://www.democraticunderground.com/10021201624

Mitt is trying out some new lies: I can't do it because of my religion. Swiss bank accounts, nothing to see here.

[gollygee]

17. He's full of shit, and if he isn't he can prove he's telling the truth easily by

releasing his damn tax returns!!