US investigation into assets abroad affects overseas Chinese

Edited and translated by Yao Chun, People's Daily Online

Foreign media reported on Dec. 26 that the U.S. government is stepping up the investigation into U.S. citizens’ overseas accounts and assets. Once assets are found hiding abroad, the owner will be severely punished. Experts said that this move of U.S. administration will greatly affect overseas Chinese.

Yu Hao, the observer of United States from Global Chinese Broadcasting Cooperation said that U.S. investigation into American overseas assets will have a strong influence into overseas Chinese. China has the largest emigration group to the United States all over the world, and about 2.5 million Chinese people are first-generation immigrants who have more or less economic ties with their hometowns.

After the United States launched its first overseas assets surrender plan, many Taiwanese residing in the United States became uneasy. Many people would rather choose to preserve their assets in Taiwan at the cost of giving up their U.S. nationality and green card.

But according to the U.S. tax laws, even if a U.S. citizen gives up his nationality, the U.S. government still has the right to demand him to pay the evaded tax and fine of the hiding overseas assets in the previous five years.

After Internal Revenue Service announced the rules, accounting firms run by overseas Chinese in the United States have got more businesses. Many people come to ask for information and others continue to wait and watch.