[asterisk-biz] OT: Paying people in faraway (Western) places.

[Dean Collins]

While on this contentious issue.....

For anyone running a USA based corporation that have staff employed
using green cards or H1 visas etc then you should expect a lot of them
to begin to leave in about 4-5 years from now before the implementation
of the HEART Taxation Act in 7 years from now.

If you haven't heard about this yet, this tax code change was swept in
under the guise of 'giving more money to returning troops'.

But what it basically means is anyone living in the USA for more than 8
years has to continue pay tax in the USA for 10 years after they
leave!!!!!

LOL.

So 18 years from now I could still be paying tax to the USA government
even though I leave the country in 2014.

This is going to be a major blow to the IT industry in the USA and a big
problem trying to attract staff.

I was at a conference last year where this was being discussed and half
the people affected in the room had never heard about it let alone begun
to think through the consequences.


http://deancollinsblog.blogspot.com/2008/10/heart-taxation-act-drives-aw
ay-green.html





Regards,

Dean Collins
Cognation Inc
dean at cognation.net
+1-212-203-4357   New York
+61-2-9016-5642   (Sydney in-dial).
+44-20-3129-6001 (London in-dial).


> -----Original Message-----
> From: asterisk-biz-bounces at lists.digium.com [mailto:asterisk-biz-
> bounces at lists.digium.com] On Behalf Of SIP
> Sent: Thursday, 8 January 2009 10:43 AM
> To: Commercial and Business-Oriented Asterisk Discussion
> Subject: Re: [asterisk-biz] OT: Paying people in faraway (Western)
places.
> 
> Alex Balashov wrote:
> > You mean, someone working outside the country still has to have
taxes
> > withheld on their behalf as though they lived in Canada, but
eventually
> > the withheld amount is recovered?  What do the employees have to do
on
> > their side?
> >
> > In this case I am more interested in the interactions with UK law
than
> > anything else.  My understanding of US law suggests pretty clearly
that
> > I don't have to do anything on the US side for someone who is
neither a
> > US/territory resident nor a US citizen.  I hope my understanding is
correct.
> >
> >
> Actually, that's not the case. The US wants whomever you pay to pay
> taxes if it's a US corporation (or even a Foreign Controlled
> Corporation). If you pay an employee, and that employee is a citizen
of
> another country, never sets foot in the US, makes money on purely
non-US
> clients, and gets paid in non-US currency, the IRS still requires that
> person to file a tax return in the US (and requires you to file
> appropriate paperwork).
> 
> With us, we have a foreign controlled corporation in the Bahamas. Half
> the owners of the corporation are non-US residents/citizens (living
> outside the US). The IRS still requires them to pay taxes.
> 
> It's a laughable system, but that's the IRS for you.
> 
> N.
> 
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