SINGAPORE–Financial institutions based in Singapore will need to regularly report information on U.S.-owned financial accounts, after the Asian financial center agrees a deal that would help the U.S. curb offshore tax evasion. The move is part of Singapore’s push to toughen mechanisms for tackling cross-border tax offenses, as it emerges… – Continue reading
Australia has signed an intergovernmental agreement (IGA) with the US in order to “reduce the burden” on financial institutions when complying with FATCA. Australian treasurer Joe Hockey said the IGA will “minimise costs” by simplifying due diligence requirements, as well as broadening arrangements between the Australian Tax Office and the… – Continue reading
The U.S. Treasury announced that on April 11, 2014, India agreed “in substance” to sign a Model 1 FATCA IGA with the US. The IGA would therefore require Indian financial institutions to report information on U.S. account holders to India’s Central Board of Direct Taxes, which would then share the information… – Continue reading
Heavy compliance cost may render equity purchases in mother country not worth their while Indians residing in America might, from July, find it tough to invest in products offered by the Indian mutual fund (MF) sector. The Foreign Account Tax Compliance Act (Fatca), that country’s new anti-tax evasion law, which takes effect… – Continue reading
Expats, offshore investors and multinational companies are the target of a new global tax network that is set to revolutionise how governments impose tax laws. Even before the US-led Foreign Account Tax Compliance Act (FATCA) takes effect from July 1, 2014, the Organisation of Economic Co-Operation and Development (OECD) is… – Continue reading
The IRS announced on 2 April 2014, that the deadline for foreign financial institutions registering for a GIIN, in order to appear on the first issued IRS list of foreign financial institutions, has been pushed out from 25 April 2014 to 5 May 2014. They have also indicated that registrations… – Continue reading
Foreign Account Tax Compliance Act (FATCA) opponents are claiming the new tax law is forcing record numbers of Americans to hand back their passports. According to official figures from the US Treasury, almost 3,000 Americans ‘expatriated’ in 2013 – an increase of more than double compared to the year before…. – Continue reading
Forthcoming US rules loom large over Middle Eastern banking sectors The four-year build up to the Foreign Account Tax Compliance Act (FATCA) going live is nearly over, with just eight weeks left until financial institutions have to be compliant. But the act, which is intended to rein in tax evasion by United… – Continue reading
The federal government has entered into an intergovernmental agreement with the United States to “reduce the burden on Australian financial institutions” in complying with the US Foreign Account Tax Compliance Act. Treasurer Joe Hockey announced yesterday that the agreement with the US government has been completed, heralding ramifications for “a… – Continue reading
Laila Arstall of Carey Olsen charts Guernsey’s path to automatic exchange of information. In 2013, UK Prime Minister David Cameron turned the political spotlight on international tax compliance, with his focus on trade, tax and transparency at the World Economic Forum in Davos. He was riding the current trend towards… – Continue reading
Guernsey’s financial services businesses were told that they have nothing to fear from FATCA – yet, at a presentation given by EY’s Executive Director for Tax, Wendy Martin. EY’s Guernsey Head of Tax, David White welcomed the audience of 150 local professionals to the presentation and introduced Wendy Martin who… – Continue reading
The Loan Syndications and Trading Association (LSTA) has released new forms of its primary trading documents, effective for trades entered into on or after April 24, 2014.[1] The LSTA’s updated forms are primarily designed to address foreign withholding tax requirements that will become effective July 1, 2014 under the Foreign Account Tax Compliance Act (FATCA). Additionally, the LSTA… – Continue reading
Next week, Jamaica and the United States (US) will officially sign the intergovernmental agreement (IGA) to implement the US’ Foreign Account Tax Compliance Act (FATCA), putting the island well ahead of its CARICOM counterparts. “We have actually signed off on the text of the agreement and it is going to… – Continue reading
Russia is in a race against time to adapt its laws to the U.S. Foreign Account Tax Compliance Act, or FATCA, and save its banks from financial sanctions. Legislation allowing Russian financial institutions to share information about their U.S. clients with the U.S. tax service, the IRS, was submitted to the State Duma on Wednesday, but has no hope of being… – Continue reading
Attempts by the country’s banks to comply with new American tax legislation are raising fears about customers’ privacy. The United States is one of two countries – the other being Eritrea – that tax their citizens who live overseas, even if their income is generated in a foreign country and… – Continue reading
Russia’s hard line over sanctions following the annexation of The Crimea from Ukraine seems to be softening over the Foreign Account Tax Compliance Act (FATCA). In on-off negotiations that have inched forward over several months, Russia had pledged to sign up to a FATCA inter-government agreement to make the country’s… – Continue reading
Americans have always enjoyed the privilege of living abroad without losing citizenship. Think Hemingway and Fitzgerald decamping to write in Europe after World War I, or Gen. MacArthur spending decades in Asia around World War II. Expatriates remain Americans, and have generally been welcomed back to our shores with open… – Continue reading
The Foreign Account Tax Compliance Act (“FATCA”) is a US tax measure enacted in 2010 to prevent and detect US tax evasion and improve taxpayer compliance. It targets tax non-compliance by US taxpayers with foreign accounts by imposing a 30% withholding tax on their transactions with foreign financial institutions and… – Continue reading
The Global Organisation for Economic Cooperation and Development’s proposed standard information exchange does not change the FATCA deadline. Jeffrey S. Freeman, J.D., LL.M It is estimated that the U.S. economy suffers a $500 billion loss annually due to tax evasion on foreign source income and assets hidden outside the country…. – Continue reading
India has concluded an ‘in substance’ agreement with the US to combat possible tax evasion by Americans through Indian financial entities. The ‘in substance’ agreement with India under Foreign Account Tax Compliance Act (FATCA) was concluded on April 11, the US Treasury said. Market regulator Sebi plans to issue guidelines… – Continue reading
THE BUREAU of Internal Revenue (BIR) is waiting for the authority to enter into a bilateral agreement with Washington for the local implementation of a US tax law. The agency, BIR Commissioner Kim S. Jacinto-Henares said, is already preparing for the implementation of the Foreign Account Tax Compliance Act (FATCA)…. – Continue reading
The Ministry of Financial Services is pleased to advise that the Cabinet of The Bahamas approved, in principle, the Model 1 Agreement between the Government of The Bahamas and the Government of the United States to implement Foreign Account Tax Compliance Act (FATCA) following a productive round of negotiations with… – Continue reading
On 29 November 2013, the Cayman Islands government signed a Model 1B (i.e. non- reciprocal) intergovernmental agreement with the United States of America (the “US IGA“). The US IGA provides a framework for the implementation of the US Foreign Account Tax Compliance Act (“FATCA“) in the Cayman Islands. Cayman primary… – Continue reading
Financial Institutions have just under three weeks left to apply for a Global Intermediary Identification Number (GIIN), FIs have until 5 May to register with the IRS for a GIIN, a unique identifier that FIs will use to show compliance following the implementation of the Foreign Account Tax Compliance Act… – Continue reading
On 29 November 2013, the Cayman Islands government signed a Model 1B (i.e. non- reciprocal) intergovernmental agreement with the United States of America (the “US IGA“). The US IGA provides a framework for the implementation of the US Foreign Account Tax Compliance Act (“FATCA“) in the Cayman Islands. Cayman primary… – Continue reading
On April 2, 2014, the U.S. Internal Revenue Service (IRS) issued Announcement 2014-17 (the Announcement), which provides certain FATCA relief.1 The Announcement extends from April 25, 2014 to May 5, 2014 the deadline by which an FFI must register with the IRS in order to appear on the first public list of… – Continue reading
Belgium and the US will sign an intergovernmental agreement (IGA) in Brussels on April 23 for the implementation of the US Foreign Account Tax Compliance Act (FATCA), the Belgian Finance Ministry has announced. The IGA requires the Belgian Tax Administration and the US Internal Revenue Service (IRS) to exchange information… – Continue reading
Kuwait International Bank has completed all the requirements to register with the US Internal Revenue Service (IRS) regarding the enforcement of FATCA, said the bank’s Board Chairman Sheikh Muhammad Al-Jarrah Al-Sabah, in a press statement. Kuwait state news agency KUNA reported him as saying that to ensure total compliance with the IRS,… – Continue reading
1. I am a ‘relevant person’ under the Jersey/UK MOU but am fully UK tax compliant. Do I need to take any action? No. The JDF is only relevant to persons who are not UK tax compliant and need to make a disclosure for past tax liabilities. 2. I believe… – Continue reading
Here come the tax acronyms; FATCA, AEOI, specified US persons & the potential for a tax residence licence in your wallet alongside your driver’s licence Posted in Personal Finance April 15, 2014 – 07:22am, By Gareth Vaughan First we get FATCA then we’ll get AEOI. Apologies for the acronyms. FATCA… – Continue reading
Deloitte experts have commented on the changes that will occur as a result of the Expo 2020 Dubai win, as well as the challenges facing senior management in the GCC countries and wider MENA region as the countdown to FATCA becomes more imminent. Deloitte experts believe that Expo 2020 will… – Continue reading
Foreign institutional investors face new extraterritorial oversight July 1 this year marks the dawn of the FATCA new world order. Giving the U.S. Internal Revenue Service unprecedented extraterritorial powers to gather information on foreign financial institutions and their underlying account holders, the Foreign Account Tax Compliance Act represents the U.S…. – Continue reading
BRUSSELS, April 12 (KUNA) — Belgium and the US will sign an agreement on 23 April that will allow the automatic exchange of bank data from accounts held in both countries. Belgian Finance Minister Koen Geens was quoted by Belgian media Saturday saying that the new deal “will lead to… – Continue reading
On April 2, 2014, the U.S. Internal Revenue Service (IRS) issued Announcement 2014-17(the Announcement), which provides certain FATCA relief.[1] The Announcement extends from April 25, 2014 to May 5, 2014 the deadline by which an FFI must register with the IRS in order to appear on the first public list of “Global… – Continue reading
Despite several delays, it seems almost certain that the “Foreign Account Tax Compliance Act”1 (FATCA) will finally go into effect on July 1, 2014. FATCA is a withholding tax regime designed to prevent U.S. taxpayers from hiding income offshore and avoiding U.S. taxes. FATCA’s impact will need to be considered in… – Continue reading
In November of 2008, America was sold on the “Hopey, Changey, Yes We Can” promise of Barack Obama. Well America, your hope has been shot since you elected him into office. Now, here comes more of the change Obama was really talking about. Are you ready? On July 1, America… – Continue reading
Abstract The Foreign Account Tax Compliance Act (FATCA) represents a powerful response by the United States to flagrant offshore tax evasion. Although the new reporting regime has been criticized as unilateral and extraterritorial, this short article, prepared for a symposium hosted by Pepperdine Law Review, shows that multilateralism and cooperation… – Continue reading
If Taiwan does not reach a consensus with the US on a pact that would help Taiwanese financial institutions meet requirements for reporting tax before July, the implementation of the Foreign Account Tax Compliance Act by the US on July 1 this year could mean a 30% tax deduction on… – Continue reading
The Foreign Account Tax Compliance Act is a US law, obligating banks in other countries to disclose to the American tax authorities information about the accounts of American taxpayers in these banks WASHINGTON, April 11. /ITAR-TASS/. Russian Finance Minister Anton Siluanov has notified US Treasury Secretary Jacob J. Lew of… – Continue reading
Foreign financial institutions, such as offshore funds, should register with the IRS by May 5 and review new and revised IRS forms. The July 1 start date for Foreign Account Tax Compliance Act (FATCA) withholding on certain payments of U.S. source income[1] is fast approaching, and no extensions of that start date are on the… – Continue reading
The Finance Ministry is drawing up legislation allowing Russian banks to give information about their clients to foreign tax authorities, after U.S. stonewalling halted bilateral negotiations on a financial information sharing agreement. At the same time, the ministry intends to oblige foreign banks to report similar information to the Russian tax service, Vedomosti reported Wednesday, citing sources in the ministry…. – Continue reading
ST. GEORGE’S, GRENADA, Tuesday April 1, 2014: The Member Governments of the Eastern Caribbean Currency Union (ECCU) have commenced discussions with the United States of America (US) towards executing an Inter-Governmental Agreement (IGA) for the implementation of the provisions of the US Foreign Account Tax Compliance Act (FATCA). On 18… – Continue reading
Starting July 1, every international business and investment in the world is going to feel the full weight of U.S. tax law directly or indirectly. It is all part of the Congress’s long-time policy of making international business — referred to derogatorily as offshore — the scapegoat in order to… – Continue reading
All bar the dotting of the i’s and crossing of the t’s appears done in New Zealand’s intergovernmental agreement with the United States over its controversial Foreign Account Tax Compliance Act, or FATCA. An Inland Revenue Department (IRD) spokesman confirmed to interest.co.nz negotiations between the two countries have progressed sufficiently… – Continue reading
Luxembourg and the US have signed an intergovernmental agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA). Luxembourg and the US negotiated a Model 1 IGA, requiring the Luxembourg Tax Administration and the US Internal Revenue Service (IRS) to exchange information automatically on accounts held by US citizens… – Continue reading
The Bahamas is aiming to complete its FATCA Intergovernmental Agreement (IGA) this coming Tuesday when a high-level team visits Washington, a Cabinet Minister yesterday disclosing this nation was pushing for another key product to be exempt from reporting requirements. #While declining to name the product in question, Ryan Pinder, minister… – Continue reading
A correspondent told me that last week’s column on Caribbean response to the US Foreign Account Tax Compliance Act (FATCA) was puzzling. Why didn’t the column expose those wimps – Caribbean ministers of finance and governments? How could they accept this bullying US imposition? My response was that I expressed… – Continue reading
WASHINGTON (Reuters) – The U.S. Treasury Department on Wednesday gave foreign financial institutions 10 extra days to register with the U.S. government, under a new law to combat offshore tax dodging by Americans that goes into effect on July 1. Under the Foreign Account Tax Compliance Act (FATCA), foreign banks,… – Continue reading
The National Treasury and the SA Revenue Service are discussing entering into an inter-governmental agreement (IGA) with the United States on a foreign tax compliant act, Sars said on Thursday. “The wording of a draft IGA has now been agreed upon and will be signed at governmental level as soon… – Continue reading
Every foreign entity must take steps immediately to determine whether FATCA will apply to it and, if so, whether FATCA registration will be required by April 25, 2014. FATCAi will go into effect on July 1, 2014. Foreign entities that must be FATCA-compliant by July 1, 2014 must register with… – Continue reading
