Financial Regulatory Forum

Foreign Account Tax Compliance Act threatens investment in the U.S.

US dollar note and other currenciesBy Christopher Elias (The views expressed are the author’s own)

LONDON/NEW YORK, (Business Law Currents) – A fiscal tourniquet will put a squeeze on tax evasion – the Foreign Account Tax Compliance Act (FATCA) is threatening to clog the arteries of the world’s financial system with U.S. withholding taxes and burdensome obligations on non-U.S. firms.

Designed to staunch the bleeding of capital from the U.S. to secret bank accounts, FATCA is clamping down on overseas earnings but its unintended consequences are threatening to undermine investment in the U.S. (more…)

FATCA tax law has bigger impact on foreign than U.S. firms

US dollar note and other currenciesBy Nick Paraskeva

NEW YORK, (Thomson Reuters Accelus) - The soon-to-be-implemented U.S. Foreign Account Tax Compliance Act, or FATCA, will have a bigger impact on foreign financial institutions than on U.S. ones, financial industry participants were told at a panel discussion on the law, which is placing new duties on compliance officers.

The event was hosted by the Securities Industry and Financial Markets Association (SIFMA) and conducted by the group’s Operations & Technology Society’s–Securities Operations Section, reflecting the role that staff in the operations units of firms were expected to have in meeting FATCA provisions.  (more…)

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