IB UK or IB USA

Discussion in 'Retail Brokers' started by kalinka, Jun 12, 2005.

  1. kalinka

    kalinka

    If you are a customer of IB UK are you from a strict juridical
    view customer of IB UK or IB LLC?
    Why I'm asking is that the European Union's Council
    directive 2003/48/EC entered in force as of 1st July 2005.
    This directive is about taxation of savings income in the
    form of interest payments. At least in Sweden they will
    include options and futures in the definition of interest.
    If your account is in the name of IB UK, they should
    inform the taxauthorities in your country of residence
    if this is a EU-Country.
    However if your account is considered as IB LLC, IB has
    no obligation to inform any taxauthority.
    Looking at various documents it seems to me that
    IB UK accounts are held by IB LLC.
    Someone Knows or Could IB give an answer?
     
  2. zdreg

    zdreg

    depends on tax treaty between u.s. and the particular country
     
  3. what do you mean by "includes futures and options in the definition of interest"?
    interest on margin deposit ? capital gains can't be treated as interest. '
     
  4. kalinka

    kalinka

    The Swedish Authorities have just widening what they
    think that they should inform other Eu-countries about.
     
  5. IB, an answer would be great here
     
  6. Steve_IB

    Steve_IB Interactive Brokers

    If you have an account with IBUK then you are a customer of IBUK.
    If you have an account with IBLLC then you are a customer of IBLLC.
    Sorry I can't comment about taxes and judicial views, etc.
     
  7. kalinka

    kalinka

    Steve,
    Someone on IB should know the answer.
    Must be an important matter also for IB.
    If the account is with IBUK, IB must for
    each client inside EU once a year send written
    information to the taxauthorities in the clients
    homecountry. IB must minimum state how much
    interest that the client has received.
    However if you look at the various forms you
    sign when opening an account with IBUK
    it seems very complicated to sort out if you
    are a client of IBUK or IBLLC.
     
  8. Steve_IB

    Steve_IB Interactive Brokers

    Ok. Let me check. It may take me a day or two to find out.
     
  9. any other findings on the topic ?
     
  10. kalinka

    kalinka

    Steve,
    Can we have an answer soon?
     
    #10     Jun 20, 2005