Cracking Down on Swiss Banks and Tax-Free Dividends

GRATs weren't the only target of revenue-raising provisions in the jobs legislation mentioned by Jim Gust. In the NY Times Gretchen Morgenson calls attention to the death of loopholes enjoyed by those holding wealth off shore.

Swiss banks and other foreign financial institutions "will face a 30 percent tax on their United States investments if they refuse to disclose information about accounts they have opened for American citizens."

"The law also closes a gaping tax loophole that allows [offshore] investors who receive dividends on companies’ shares to pay no taxes on them."

Note that Sandy Levin and his staff (see preceding post) are credited with spotting the dividends gambit.