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Finance & Accounting
Pages 3 (753 words)
Avoiding Taxes Individuals residing in the U.S. are obliged to pay their income taxes (Hoffman, Maloney, Raabe, & Young, 2013). The government uses the income tax to obtain funds for the building of public infrastructure and services. However, not all taxpayers are in favor of paying income taxes…
Renouncing citizenship The determination of some citizens to avoid the payment of income taxes has led them to the idea renouncing their US citizenship. As per s 349(a) (5) of the Immigration and Nationality Act (INA) (8 U.S.C. 1481(a) (5)), a US citizen is given the right to voluntarily renounce US citizenship. Expatriated citizens are bound to adhere to the expatriation tax provisions depending on their net worth. Since the government has found a way to oblige US citizens to pay taxes even when they are overseas, giving up US citizenship has become the last resort for some, who view tax liabilities as burdensome and inequitable. The aim of renunciation is to be exempted from tax liabilities, not only when residing in the country, but also when considering going out of the country for whatever personal reasons. Once a U.S. citizenship is relinquished, the income tax duties of an individual diminish. 2. Establishing dual citizenship The US government is not in full of dual citizenship as it may bring confusion on the part of a dual-national U.S citizen. Nevertheless, individuals, who have the chance to acquire dual citizenship, make use of this opportunity to lessen their tax obligations. ...
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