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Daily Tax Quote

New On The Network Today

This feed is published daily with selected new or updated content from across our network. For a list of network sites, many of which feature daily news, see below.

 
02/09 New Lowtax Editor Column, by Kitty Miv
01/09 International Privacy and Security, Investors Offshore special feature
31/08 Lowtax Belize, annual update
27/08 IRS To Drop UBS Lawsuit, Tax-News.com
26/08 New Lowtax Editor Column, by Kitty Miv
25/08 New PBTG Editor Column, Caroline, PBTG editor
24/08 Uruguay Stays On OECD Grey List, Tax-News.com
23/08 Don't Forget Doha, And I Don't Mean The Tennis, Jeremy Hetherington-Gore blog entry
20/08 Ireland Plans Social Security Overhaul, Tax-News.com
19/08 New Lowtax Editor Column, by Kitty Miv
18/08 New PBTG Editor Column, Caroline, PBTG editor
17/06 Lowtax Cayman Islands, annual update
16/08 Germany's Fiscal Court Seeks Property Tax Reform, Tax-News.com
13/08 Jurisdiction Special Focus: Antigua and Barbuda, Investors Offshore special feature
12/08 New Lowtax Editor Column, by Kitty Miv
11/08 New PBTG Editor Column, Caroline, PBTG editor
10/08 Brazil Cuts Import Tariffs, Tax-News.com
09/08 Ukraine Tax Code Published, Tax-News.com
06/08 France Plans Reform Of Property Tax Credit, Tax-News.com
04/08 New PBTG Editor Column, Caroline, PBTG editor
02/08 Islamic Finance - The New Mainstream Alternative, Investors Offshore special feature
28/07 New PBTG Editor Column, Caroline, PBTG editor
27/07 UK Launches Raft Of Tax Consultations, Tax-News.com
26/07 Fat Tax On The Menu , Jeremy Hetherington-Gore blog entry
23/07 Sarkozy Seeks 'Fiscal Convergence' With Germany, Tax-News.com
20/07 Singapore Base For Tuvalu OIFC, Tax-News.com
15/07 St Vincent & The Grenadines, Investors Offshore special feature
13/07 Tax- News.com Jersey Review 2010-2011
12/07 Goodbye To All That, Jeremy Hetherington-Gore blog entry
06/07 Hong Kong Full PBTG Guide, added to Personal Business Tax Guide
28/06 Lowtax Dubai, annual update
18/06 Singapore - Another Hong Kong?, Investors Offshore special feature
15/06 Swiss Parliament Approves UBS Agreement, Tax-News.com
08/06 Dubai Full PBTG Guide, added to Personal Business Tax Guide
04/06 Lowtax Panama, annual update
01/06 Lowtax Luxembourg, annual update
03/03 Personal Business Tax Guide, PBTG, has launched!
Providing essential tax news and information for globally mobile artists, contractors, entrepreneurs, professionals, small businesses, sportspersons and entertainers.
 

 
Lowtax Network Sites
Lowtax Network Portal: 'Low-tax' business and investment in the top 50 jurisdictions covered in exceptional detail.
Tax News: Global tax news, continuously updated through the day.
Investors Offshore: The independent offshore and alternative investment guide for expatriates and the globally aware investor. Sponsored by HSBC Bank International.
Law & Tax News: Daily news and background data on tax and legal developments for international business.
Offshore-e-com: A topical guide to offshore e-commerce focused on tax and regulation.
Lowtax Library: One of the web's largest and most authoritative business and investment information sources.
US Tax Network: The resource for free online US taxation information, covering: corporate tax, individual tax, international tax, expatriates, sales and e-commerce tax, investment tax.
NEW! Personal Business Tax Guide: Providing essential tax news and information on business for contractors, entrepreneurs, professionals, small businesses, artists, sportspersons and entertainers.
 
Madoff Investors Look To Uncle Sam For Bailout

by Leroy Baker, Tax-News.com, New York 23 December 2008

As the explosive revelations from the Bernard Madoff investment scandal continue to reverberate across the financial world, investors who have lost money in Madoff's funds may be able to reach for one crumb of comfort in the form of the US tax code, it has emerged.

With many investors still counting the cost of putting their trust - and substantial sums of money - into what has allegedly turned out to be Wall Street's largest-ever Ponzi scheme, tax advisors are pointing to certain sections of the US tax code which could allow investors to recoup significant sums through 'theft loss' provisions.

Under the theft loss rules, taxpayers can deduct a loss against 90% of their adjusted gross income, plus USD100. Therefore, an investor with an income of USD100,000 who lost USD1m would - theoretically - be able to deduct USD989,900. Also, because of the nature of the loss, taxpayers affected by the scam are entitled to claim an 'ordinary' (as opposed to a 'capital') loss deduction under section 165 of the US tax code, and therefore carry back unused losses by three years (as opposed to two). They can also carry forward unused losses to the next 20 tax years.

Whether the Internal Revenue Service would allow such a claim is another matter entirely. At the very least, taxpayers seeking such deductions, and especially those adjusting previous tax returns, can expect an IRS audit for their troubles.

"These victims of investment fraud may qualify for a little known tax break that until now, not many people have been eligible for," said Michael Rozbruch, founder and CEO of Tax Resolution Services. However, he warned that: "To recover your losses, you will need to go back and amend your tax returns, which means you will inevitably be audited." Rozbruch added that professional advice is essential for taxpayers in such scenarios.

Given the current economic climate and the likelihood of falling tax revenues in the year ahead, the IRS, which could face tax revenue losses in the billions of dollars (as much as USD17bn according to one estimate), is unlikely to want to become an unwitting victim of the Madoff scandal too. Therefore, it remains questionable at present whether the agency would uphold such substantial theft loss claims.

Since the December 11 arrest of the seventy-year-old Madoff, the list of companies and individuals facing steep financial losses based on their dealings with Madoff and companies affiliated with or controlled by him has grown to include individuals and institutions across the United States. In addition, Madoff's fund obtained money from some of Europe's largest banks, including institutions in the United Kingdom, Spain, France and Italy, and their clients.

"If this were a traditional bank robbery, the eyewitness reports would say that Madoff walked out with billions of dollars as someone held the door open for him," says Jeffrey Zwerling, a founding partner of Zwerling, Schachter and Zwerling, which has been retained by individuals and entities allegedly duped by Madoff.

"If it's true, it's just amazing in terms of the audacity, if nothing else," Zwerling observed.

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