Zurich Insurance Non Prosecution Agreement

Posted on 22. Dec, 2020 by in Uncategorized

While there are many life insurance purchase opportunities in the United States for people living in the United States, the situation is not as clear for those who are U.S. citizens living abroad. Indeed, in many cases, the policy in place in the United States cannot offer the individual the same protection as he had when he resides on the state side. That is another reason why Americans are turning to the foreign insurer abroad. But because of “complex U.S. tax rules that can apply to these guidelines,” as well as non-U.S. tax rules. Health insurance or accident or pensions, Americans abroad may be unintentionally taxed by exposure to “passive foreign investment companies” (PFIC) rules, Foreign Bank account reports and other foreign wealth information, as well as a little-known excise of 1% that the United States taxes on premiums related to certain foreign insurance, La Torre Jeker, la Torre Jeker said. Although Zurich International Life was aware that some of these guidelines, which had minimal function to no risk reduction function and specialized investment options, were held by U.S.

taxpayers, Zurich International Life did not act appropriately to ensure timely compliance with U.S. tax law by policyholders. In at least one case revealed by Zurich Life`s internal audit, a former U.S. citizen, who had pleaded guilty to a federal scam following the purchase of a Zurich International Life policy, used the insurance policy to conceal substantial assets, when he owed his victims about $900,000 in compensation. Zurich International Life, in particular, sold insurance products to U.S. tax payers who were “unit-related,” meaning that the value of the cashback and the amount of the death benefit were related to the value of the claims. With such a policy, the U.S. taxpayer had a number of specialized investment options that allowed them to access potentially higher returns by taking the market risk associated with the guidelines. Some of these investment fund measures have provided a basic death benefit almost equivalent to the cost of the policy itself and, in some cases, fully financed by transfers of offshore bank accounts.

At the time of repayment, the U.S. taxpayer would receive the premium amount, plus the policy`s investment income, net of a very small percentage for the assumed risks and expenses. “In order to receive advantageous tax treatment in the United States, life insurance and pension contracts must meet certain requirements set out in the United States.

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