Enacted by Congress in 2010, these
provisions target noncompliance by U.S. taxpayers using foreign accounts.
Treasury’s engagement with this broad coalition of foreign governments to
efficiently and effectively implement FATCA marks an important milestone in
establishing a common intergovernmental approach to combating tax evasion.
“Global cooperation is critical to implementing FATCA in a
way that is targeted and efficient,” said Treasury Assistant Secretary for Tax
Policy Mark Mazur. “By working cooperatively with foreign governments and
financial institutions, we are intensifying our ability to combat tax evasion
while minimizing burdens on financial institutions.”
This summer, Treasury published a model intergovernmental
agreement for implementing FATCA and announced the development of a second model
agreement. These models serve as the basis for concluding bilateral agreements
with interested jurisdictions.
The Treasury Department has already concluded a bilateral
agreement with the United Kingdom. Additional jurisdictions with which Treasury
is in the process of finalizing an intergovernmental agreement and with which
Treasury hopes to conclude negotiations by year end include
: France, Germany,
Italy, Spain, Japan, Switzerland, Canada, Denmark, Finland, Guernsey, Ireland,
Isle of Man, Jersey, Mexico, the Netherlands, and Norway.
Jurisdictions with which Treasury is actively engaged in a
dialogue towards concluding an intergovernmental agreement include: Argentina,
Australia, Belgium, the Cayman Islands, Cyprus, Estonia, Hungary, Israel, Korea,
Liechtenstein, Malaysia, Malta, New Zealand, the Slovak Republic, Singapore, and
Sweden. Treasury expects to be able to conclude negotiations with several of
these jurisdictions by year end.
The jurisdictions with which Treasury is working to explore
options for intergovernmental engagement include:
Bermuda, Brazil, the British
Virgin Islands, Chile, the Czech Republic, Gibraltar, India, Lebanon,
Luxembourg, Romania, Russia, Seychelles, Sint Maarten, Slovenia, and South
Africa.
The Treasury Department will continue its outreach to
interested jurisdictions that wish to consider an intergovernmental approach to
implementing FATCA, including participation in a meeting hosted by the Qatar
Central Bank in early December to provide information about FATCA and the
intergovernmental agreements to invited senior government officials and
financial institutions in the Gulf Cooperation Council.
The Treasury Department and the IRS will finalize the
regulations implementing FATCA in the near term.
FATCA Problems??? Have a Foreign Bank Account??? Contact the Tax Lawyers at Marini& Associates, P.A. for a FREE Tax Consultation at: www.TaxAid.us or www.TaxLaw.ms or Toll Free at 888-8TaxAid (888 882-9243).
The U.S. Department of the Treasury today announced that it is engaged with more than 50 countries and jurisdictions around the world to improve international tax compliance and implement the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA).
Brian, here is some of the best analysis of the Treasury announcement I have read, that isn't just an rehash of what Treasury said, with admonishments by the FCC to hurry up and comply.
ReplyDeleteIt starts like this...
"Regarding Treasury’s announcement of negotiations with multiple countries, we need to see that there’s both more and less here than meets the eye. Consider:"....
You can read more here... http://bit.ly/TR7LG0
Posted by Marvin Van Horn
If there was ever a doubt that FATCA is the Tip of the Spear for a GATCA, a global tax exchange, this should remove it.
ReplyDeletehttp://www.stepjournal.org/journal_archive/2012/step_journal_november_2012/foreign_there%E2%80%99s_no_%E2%80%98f%E2%80%99_in.aspx?link=contentMiddle%20contentMiddleWide
"The UK parliament’s International Development Committee, quoting the Tax Justice Network, Christian Aid and Glencore, has called for the government to ‘introduce legislation similar to the relevant section of [FATCA], requiring tax authorities automatically to exchange information relating to UK citizens or corporations. The government should also use its influence (via the OECD Tax and Development Task Force, and similar avenues) to persuade other governments to follow suit4."
The only way this gets derailed, if Congress grows a pair and stops the IRS DATCA dead in its tracks. These efforts at forcing US Financial Institutions provide the tax data for reciprocal IGA arrangements is expatriating the cost of FATCA back onto US shores. This might be overstepping IRS statutory power, but if Congress doesn't respond, than the IRS and the FATCANATICs have the upper hand. Bureaucrats rule. Consequences be damned!
If you didn't live on this little blue globe, and just a dispassionate observer from afar, I think this struggle to create a GATCA is one of the most interesting economic and regulatory developments in recent history. Too bad the US media is asleep and not interested. I think this is much worse than Frank Dodd, or Basil II when it comes to economic impacts that will ripple around the world. Do these guys really think that Capital flows will just happily surrender to GATCA certainty? Time will tell.
Posted by Marvin Van Horn