Published on 01 Jun 13
by "THE TAX SPECIALIST" JOURNAL ARTICLE
On 18 March 2010, the Foreign Account Tax Compliance Act (FATCA) was signed into law in the US as part of the Hiring Incentives to Restore Employment (HIRE) Act of 2010. FATCA was enacted to uncover and thwart tax evasion by some US taxpayers using foreign accounts and offshore investment vehicles. To accomplish this goal, FATCA establishes a new withholding and information reporting regime, buttressing and supplementing the existing US withholding and information reporting rules. In broad terms, FATCA requires “foreign financial institutions” and “non-financial foreign entities” to identify and disclose their US accounts and substantial US owners, as applicable, or be subject to a 30% withholding tax on certain US-source income or gross proceeds payable to them.
On 17 January 2013, the lengthy Final FATCA Regulations were issued by the US Treasury Department, lifting the curtain on the formal implementation of the FATCA provisions enacted almost three years ago. This article provides responses to some of the frequently asked questions of those seeking to understand how FATCA might affect them.
Peter Norman FTI
Peter is a Partner with Norton Rose. Current at 01 April 2010
Ron is a Senior Associate with Fulbright and Jaworski LLP.
Andrius is a Partner with Fulbright and Jaworski LLP.
Lisa is Senior Counsel with Fulbright & Jaworski LLP.