16. August 2009 by Dan Walkow, CFA, CMT.

September 23, 2009 is the date a US person can come forward to the IRS and declare offshore holdings under the current amnesty program.

The IRS long has had a policy that certain tax evaders who come forward before they are contacted by the agency usually can avoid jail time as long as they agree to pay back taxes, interest and hefty penalties. Drug dealers and money launderers need not apply. But if the money was earned legally, tax evaders can usually avoid criminal prosecution.

If the IRS finds you before you find them prepare to spend some time in the crowbar hotel.

Offshore tax havens are under severe pressure to disclose client lists and many jurisdictions are signing cooperation aggreements with the USA and other countries around the world. You can run but you cannot hide…anymore.

Read more on CNBC. Also see a recent piece at WSJ.

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16. August 2009 by Dan Walkow, CFA, CMT.

Protectionist measures between Mexico, Canada and the USA are heating up. Last month the United States banned Mexican truckers from bringing goods into the United States. Mexico retaliates by slapping heavy import tariffs on 90 American made products.

Canadian truckers and exporters are apprehensive when they hear statements from the likes of U.S. Homeland Security Secretary Janet Napolitano  who said this week that Canada shouldn’t get different treatment when it comes to border issues.

This all started with the Obama administration’s Buy America Policy and is gaining momentum as we get into an ugly tit for tat trade war. Everybody is a loser in this game.

Consider:

The Mexican government carefully selected the products it raised tariffs on to create the maximum political impact. Members of Congress who supported the ban on Mexican trucks find that exporters in their states being directly targeted.

Canadian businesses are still at risk of being locked out by state and municipal procurement contracts because of protectionist provisions in stimulus spending packages.

On the immigration front, Canada now requires any Mexicans who want to come to Canada to have a visa. This blindsided the Mexican government and you can bet they are not overly pleased with Canada’s unilateral actions. What now, are Canadians going to have to get a visa to holiday in Mexico?

The North American Free Trade Agreement (NAFTA) appears to doomed as this trade war heats up. It is ironic that while the rest of the world is opening borders and promoting international free trade North America seems to be backsliding into the protectionist abyss.

For more see Tightening border alarms Ottawa, exporters at the Toronto Star.

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