Archive for January 2012
Treasury calls for FATCA exemptions on eve of new proposals
Investment Week (30 Jan 2012)
The United Kingdom Treasury is pressing for a “country to country” application of FATCA. “HM Treasury will not allow any legislation which undermines the UK’s own national sovereignty and tax framework.”
U.S. tax crackdown has American citizens in Calgary scrambling
Calgary Herald (30 Jan 2012)
[ Similar: American expats scramble to file taxes (31 Jan 2012) ]
The story amounts to an interview with Moodys Tax Advisors, a firm that recognized an underserviced area in Calgary about three years ago. According to leader Roy Berg, the IRS has just released statistics showing “only 11 per cent of citizens residing abroad are compliant” with U.S. requirements. Numbers for US citizens resident in Calgary range “between 80,000 to 100,000” at a “best guess.”
Vanessa Houlder / Shahien Nasiripour
US rethinks offshore tax evasion reporting rules
Financial Times (29 Jan 2012)
“The IRS is expected to narrow the focus of the rules on to larger accounts and bring the procedures required to identify US clients closer in line with the procedures that financial institutions already follow.”
New website with offshore bank account, expatriation information
Hodgen Law Group (28 Jan 2012)
Hodgen commends the Canada-based Isaac Brock Society web site and offers brief comment on OVDI/FBAR cases and on expatriation. Hodgen writes this blog entry from the Middle East where he is encountering “massive, massive interest” in cancellation of US citizenship.
US Treasury aims to lower FATCA burdens
Tax-News (27 Jan 2012)
Godrey reports on remarks made by Acting Assistant Secretary for Tax Policy, Emily McMahon about provisions for FATCA implementation being in “the final stages of clearance at the United States Treasury and the Internal Revenue Service (IRS).” McMahon traces FATCA measures to “a series of events in 2008 and 2009 involving very serious instances of offshore tax evasion” and U.S. government intention to cover “significant gaps [that] remained in the system.” Adjustments include (1) setting higher threshholds for reporting (2) use of existing provisions on money laundering and know-your-customer (3) expansion of categories of FFIs that are deemed compliant (4) exception for retirement plans (5) less immediate linkage responsibility attributed to affiliated institutions (6) seeking to use foreign governments as intermediaries for the required reporting.
Foreign Account Tax Compliance Act threatens investment in the U.S.
Reuters U.S. (26 Jan 2012)
This lengthy technical article delves into how “the combination of a wide definition of FFI and the scope of what is considered a U.S. ‘person’ places a substantial burden on foreign financial institutions to track, monitor and report U.S. foreign holdings.” Attention is focused on the implications of broken chains, passthru payments, derivatives, and conflicts of law. “Crossbridge, a London-based consultancy for the investment banking industry, estimated recently that compliance costs may be between US$150 million to $200 million for every medium sized bank.”
Americans renouncing citizenship over onerous tax code
Meritas Advisors (26 Jan 2012)
Hawkins lists specifics on the punitive nature of the current United States tax code with a link to video of her recent appearance on Fox network.