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state dept on CE and taxes plus Chat Wimp's thoughts

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#1 wisewarrior


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Posted 07 March 2013 - 11:07 AM

some of you may recognize this as an email wenmar sent out last has been amended by Chat Wimp and me WW



Chat Wimp:This seems to fit in with some of my earlier research into exchanging currencies. Currencies are "likes". The exchange of "likes" is NOT a "taxable event", however, the "matrix" is everywhere and riddled with hidden snares that sometimes catch even the most "wily" of "critters".  


CHANGES by ME : BOLD type, font size  has been changed for emphasis along with a comment inserted in [ ] {seen but is not there].


Wisewarrior we should find the original doc and make sure this is true



Subject: Currency exchange and taxes

Date: Wednesday, March 6, 2013, 11:58 PM

Subject: US State Dept Quote on Currency Exchange Taxes & RV Update
Date: March 5, 2013 7:24:36 PM EST
In discussion of taxes on this currency exchange, it may be wise to pass this US State Department report on to your CPA or Tax Lawyer for their assessment of your individual situation. Michael U.S. Department of State 2013 Investment Climate Statement Bureau of Economic and Business Affairs February 2013 Report
(This is just one SECTION. This document is a long and informative read.)
Currency Conversion and Transfer Policies (LOOK FOR THIS SECTION)

The currency of Iraq is the Dinar (IQD - sometimes referred to as the New Iraqi Dinar). Iraqi authorities confirm that in practice there are no restrictions on current and capital transactions involving currency exchange as long as underlying transactions are supported by valid documentation. The International Monetary Fund’s annual publication on Exchange Arrangements and Restrictions states that “restrictions on capital transactions are not enforced; however, documentation and reporting requirements apply.” The National Investment Law contains provisions that, once implemented, would allow investors to maintain Iraqi bank accounts and transfer capital inside or outside of Iraq. 

The Government of Iraq’s monetary policy since 2003 has focused on maintaining price stability primarily by appreciating the IQD against the U.S. dollar while seeking to maintain exchange rate predictability. Banks may engage in spot transactions in any currency, but are not allowed to engage in forward transactions in Iraqi Dinar for speculative purposes. 
 (*) There are no taxes or subsidies on purchases or sales of foreign exchange. Improved security has allowed for an increased supply of goods and services which, along with the Central Bank of Iraq’s monetary and exchange rate policies, have continued to help temper inflation. The CBI has brought inflation down from a peak of more than 70 percent in 2006 to below 10 percent since early 2008, primarily through appreciating the currency. The CBI has held the official exchange rate at close to 1,170 IQD/1.00 USD since 2009.
"This is my opinion only and shall not in any way be construed as legal or financial advice. You must pay all taxes that are legally required. If you have questions or concerns, please consult with your legal or financial professional."
We just learned that when you go in for the CURRENCY EXCHANGE, you must tell the banker (and ANYONE else who may happen to speak to you when you get there) that you are "here to EXCHANGE SOME CURRENCY."
You will be REQUIRED to fill out a Form FINCEN 104.
You will also be presented with ANOTHER FORM which uses the word "INVESTMENT" instead of CURRENCY EXCHANGE. If you sign this second form, you will be attesting to the fact that you are cashing in your investment as opposed to making a CURRENCY EXCHANGE.
An "INVESTMENT" of this type MAY BE taxed as much as 36%.
If the bank insists that I sign the "investment" document, I will politely but resolutely insist that they provide me with a written statement that they are refusing to allow me to EXCHANGE an internationally tradable CURRENCY. [ADDED by Chat Wimp: I believe (my opinion) that denying the exchange of currency in a bank that exchanges currencies constitutes the denying of a privilege that one may "lawfully"  make the claim to hold; i.e., the bank will be in trouble.]


WW note BWM has stated often that banks are not obligated to exchange currency, it is a service they extend as a courtesy. Chat Wimp can be a testy old man lol.
"This is my opinion only and shall not in any way be construed as legal or financial advice. You must pay all taxes that are legally required. If you have questions or concerns, please consult with your legal or financial professional."


CHAT WIMP ADDENDUM Disclaimer: I'm not a tax attorney, accountant, or the like. Anything I present should be viewed as purely "my opinion only" and the use of anything written by me is "purely the readers responsibility and liability". WITHOUT PREJUDICE UCC 1-308

My original research indicated, to my limited understanding of such matters, that there ARE NO TAXES on the EQUAL exchange of "things" ("currency" being a "thing", automobiles being a thing, etc.) under the MAXIM "exchange of likes for likes".

However, one must be very wary of ANY documents that you sign that indicate that this is/was an "investment" (BASICALLY ... DON'T SIGN IT even if the BANK tries to insist, INSIST that it is an EXCHANGE only). If one AGREES (by signing) that it is an INVESTMENT then one volunteers to pay "income tax".




spooky bob addendum (edited):
Sent: Mar 7, 2013 11:44 AM 
Subject: A US Department of State Document ........2013 Investment/Climate Statement .... Iraqi Dinar 

*Hopefully there will be no taxes on currency exchanges...

*Subject:* *US Department of State Document ---> 2013 Investment Climate
Statement - Iraq*

open the PDF... and look at page 4!
Take a look at the attached state department document...

I have taken screen shots of the first (4) pages of the (10) page

Read the first 2 full paragraphs on page 4 (I have a sentence outlined in

You can verify this information by going to the following link...


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