Like most borders in the world, the United States restricts the amount of cash you can bring into the country. One recent arrival from Hong Kong learned this the hard way after attempting to bring in $2 million in undeclared cash.
When Mr. Wu arrived at Los Angeles Airport, he informed US customs agents that he was only carrying $5,000. Upon further investigation however, agents discovered that Wu actually had close to $2 million.
While Wu was free to go, customs seized the money. In order to get it back, Wu will have to pay US federal taxes at a rate of 52 percent, or roughly $1,039,740.
Wu tried to avoid paying the taxes, arguing that he had not “created income” while on US soil.
According to Li Hao, founding President of the China and US Institute of Chartered Accountants, such occurrences are common among Chinese coming the USA; despite being aware of US tax laws, there are some that still try to evade the system.