FATCA

This article discusses the impact of incomplete tax transparency on tax evasion. While FATCA and CRS address some forms of tax evasion, tax evaders may still use other tax evasion opportunities. Anti-tax evasion measures might not be effective or cost-efficient if tax evaders can continue evading taxes through alternative tax evasion channels. Automatic exchange of information (AEOI) might also exacerbate the social harm from tax evasion if tax evaders take costly actions to avoid reporting. This article explores policy responses that could better address the problems created by incomplete tax transparency.

Come September 30, India and the US will start sharing information about bank accounts or financial investments made by their citizens in each other’s countries. This move will help curb offshore tax evasions. Both countries, signed an Inter-Governmental Agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA) to promote transparency on tax matters. “This will bring in greater transparency in tax administration and enforcing tax compliance as well as prevention of offshore tax evasion. This is a major step in the Government’s resolve to fight the menace of black money,”  "FATCA is a mutual effort to combat tax evasion and it would be mutually beneficial for both the countries... FATCA would detect, discourage offshore tax evasion. This kind of exchange of information is top priority for governments,"

Résumé

À la suite de plusieurs scandales d’évasion fiscale, le Congrès américain a adopté en 2010 le Foreign Account Tax Compliance Act (FATCA), législation extraterritoriale imposant à l’ensemble des institutions financières étrangères (IFE) de communiquer à l’administration fiscale américaine (l’IRS) des informations relatives aux comptes détenus à l’étranger par des personnes américaines. Le transfert de ces renseignements étant susceptible d’être prohibé par les droits nationaux, les États-Unis ont conclu des accords bilatéraux (avec la France en 2014) afin d’autoriser les institutions financières de les collecter et communiquer. Les IFEs doivent depuis identifier les personnes américaines sur la base « d’indices d’américanité », dont le lieu de naissance aux États-Unis. Le système fiscal américain étant l’un des seuls où les revenus mondiaux sont taxés sur le fondement de la nationalité (citizenship-based taxation), le FATCA a ainsi ciblé des personnes nées « par accident » aux États-Unis, de parents étrangers, et qui sont nationaux et résidents fiscaux d’autres États. Ces « américains accidentels » ont été subitement confrontés à des situations kafkaïennes, certaines institutions financières refusant des clients présentant des indices d’américanité, d’autres exigeant que ces personnes se mettent en conformité avec leurs obligations réglementaires et fiscales au regard du droit américain ou prouvent qu’elles ne sont pas américaines. La combinaison du FATCA, de la citizenship-based taxation et d’un droit du sol pour ce qui concerne l’acquisition automatique de la nationalité américaine ont ainsi fait du FATCA un dispositif à portée extraterritoriale sans précédent qui affecte directement et sur une très large échelle un nombre significatif de personnes qui n’ont plus de lien avec les États-Unis. Cette extraterritorialité suscite des questionnements du point de vue du droit international et il apparaît aussi que le FATCA est un dispositif juridiquement fragile. Il soulève en effet de sérieuses interrogations quant à sa compatibilité avec le droit à la vie privée et le droit européen de la protection des données personnelles. Il génère par ailleurs des discriminations fondées sur la nationalité vraie ou supposée difficilement justifiables.
Si la mise en œuvre de ce dispositif est susceptible d’être contestée devant les juridictions par les personnes affectées, il appelle néanmoins, une réaction plus large de la part de la part des autorités françaises et de l’Union européenne, en particulier lorsque l’on constate que les accords bilatéraux ne sont pas appliqués de manière réciproque par les États-Unis.

Summary

As a result of several tax evasion scandals, the US Congress enacted in 2010 the Foreign Account Tax Compliance Act (FATCA), an extraterritorial statute imposing on all foreign financial institutions (FFIs) the obligation to report to the Internal Revenue Service (IRS) information about financial accounts held by US persons abroad. Since the direct transfer of data could be prohibited by foreign laws, the US concluded several bilateral agreements with other States (with France in 2014) so as to allow FFIs to collect and transfer the information required by FATCA. Within this framework, FFIs must identify US persons on the basis of several « US indicia », among them a US place of birth. The US system of income taxation being one of the few based on nationality (citizenship-based taxation), FATCA has also targeted persons « accidentally » born in the US to non-US parents and also nationals and resident for tax purposes of other States. These « accidental Americans » have been suddenly confronted to Kafkaesque situations : some financial institutions refusing clients with US indicia, other requiring a certificate of loss of US nationality or full compliance with US tax and regulatory requirements. The combination of FATCA, citizenship-based taxation and the automatic acquisition of US nationality by virtue of jus soli have turned FATCA into an unprecedented extraterritorial apparatus directly hurting on a very large scale a significant number of persons no longer having any links with the US. This extraterritorial reach raises concerns from an international law perspective and FATCA also has other legal weaknesses. It raises indeed many issues as to its compatibility with the right to privacy and European standards on personal data protection. FATCA also generates discriminations based on nationality (true or alleged) that seem difficult to justify. While the implementation of FATCA could eventually be challenged before domestic courts, it also requires a broader response from French and EU authorities since theUS does not apply bilateral agreements on a reciprocal basis.

Two global transparency initiatives are underway that could help tackle financial crimes including tax evasion, money laundering and corruption: registration of beneficial ownership for companies (to identify the real
persons owning or controlling such companies) and automatic exchange of bank account information between tax administrations. The European Union has made progress in both respects, with the adoption of a 4th anti-money laundering Directive (in May 2015) and by committing to implement the OECD’s common reporting
standard for automatic exchange of financial account information. The United States (U.S.), in contrast, has done neither so far.

El contexto actual de globalización, crisis económica y competencia
fiscal ha supuesto la reacción de las organizaciones internacionales
(en particular, la OCDE y la UE) en orden a la instauración de un
“nuevo estándar de intercambio de información”, basado en el
intercambio automático de datos, que encuentra su antecedente en
FATCA. Avance que persigue como objetivo la lucha contra el fraude
fiscal desde el convencimiento de que dicha finalidad solo puede
conseguirse a través de la coordinación de los procedimientos
de los distintos Estados, a partir de la instauración de sistemas
estandarizados de intercambio de información y, fundamentalmente,
desde la construcción de una cultura de la cooperación que coadyuve
a superar los obstáculos que se oponen a un efectivo intercambio de
datos a nivel internacional.

La reforma tributaria de 2016 ha introducido el concepto de beneficiario efectivo en el Estatuto Tributario colombiano como regla que determina ciertas obligaciones de información, como norma anti-abuso que permite desconocer determinados gastos, y como elemento definitorio de la norma general anti-abuso. Sin embargo, el contenido del concepto en tales normas dista de estar claro, lo que unido a las gravosas implicaciones que conllevan tales reglas plantea problemas de legalidad y seguridad jurídica. Este trabajo analiza el origen, contexto y contenido de tales reglas desde una perspectiva crítica, concluyendo sobre la inadecuación e incoherencia de la inclusión del concepto en el Estatuto Tributario. Por ello, se recomienda replantear el concepto a nivel internacional en lo que se refiere a intercambio de información, ajustar el mismo a nivel doméstico en Colombia, y eliminarlo del Estatuto Tributario o tenerlo por no puesto en relación con las normas anti-abuso.

El autor desarrolla la actual coyuntura de las regulación panameña para las acciones al portador. Luego de comentar la inclusión de Panamá a la lista gris del GAFI, el autor describe la Ley 47/2013 y sus principales implicancias legales, así como los riesgos tributarios asociados. Posteriormente, comenta la reciente Ley 18/2015, entrada en vigencia el 4 de mayo de 2015 y que, en esencia, redujo los plazos para la aplicación del denominado régimen de "inmovilización de acciones". Finalmente, el autor se plantea el futuro de Panamá como centro de estructuras internacionales y los nuevos retos para continuar usando sus compañías, sin perder la confidencialidad de la propiedad accionarial.

Descarga FULL VERSION en PDF ➡️ https://goo.gl/wpSM1a  Chile: Decreto N° 418. Entraron en vigencia las obligaciones de identificación de cuentas de no residentes que deben efectuar las instituciones financieras para dar cumplimiento con el Common Reporting Standard (CRS).  #fatca #bancos #seguros #crs #chile #aml #impuestos #oecd

A edição de normas voltadas a permitir maior outorga de benefícios fiscais e tratamentos tributários diferenciados, com vistas a atrair investimentos estrangeiros, a fomentar o mercado e a concorrência interna, inserida no contexto da globalização, impulsionou o fenômeno mundial da fuga geral de capitais. Práticas como a evasão fiscal e o planejamento tributário arrojado, adotadas pelos contribuintes com a finalidade de omitir ou reduzir a carga tributária incidente sobre suas operações, conduziram as Administrações Tributárias à necessidade de readequarem seus sistemas tributários e, principalmente, seus mecanismos de fiscalização. É neste contexto que se edificará a discussão quanto à importância da adoção do intercâmbio automático de informações para fins tributários, principalmente como meio de viabilizar a justiça fiscal à tributação da renda, bem como de estabelecer e tornar efetiva a transparência fiscal internacional. Para tanto, abordar-se-ão os aspectos essenciais da assistência internacional mútua, no que condiz aos instrumentos “Acordo Multilateral” e “FATCA”.

Palavras-chave: intercâmbio de informações fiscais, evasão fiscal, planejamento tributário arrojado, transparência fiscal, justiça fiscal.

ABD'de vergi mükelleflerinin gelirlerini kayıt altına almak ve vergi gelirlerindeki kaybı azaltmak amacıyla 18.03.2010 tarihinde Yabancı Hesaplar Vergi Uyum Yasası (FATCA) yayınlanmıştır. Söz konusu yasanın finansal kuruluşlara yönelik en önemli etkisi ise FATCA'ya uyumsuzluk halinde ABD bankaları ile muhabirlik ilişkilerinin kısıtlanması veya tamamen durdurulmasının olasılık dâhilinde olmasıdır. Bu bağlamda, ilgili çalışmada FATCA'nın Türk bankaları üzerindeki muhtemel etkilerinin değerlendirilmesi amaçlanmıştır. Çalışmada son gelişmeler ışığında FATCA detaylı bir şekilde ele alınmış olup bankaların FATCA'ya uyum için gerçekleştirmesi gereken faaliyetler ve alınması gereken aksiyonlar detaylı bir şekilde incelenmiştir. Sonuç olarak, bankaların FATCA'ya önem vermesi ve Türkiye ile ABD arasındaki anlaşma gereğince tam olarak uyum sağlaması gerektiği anlaşılmaktadır. Öte yandan, uyum sağlamada kısmi ya da ciddi sorunlar görülmesi halinde ise bankaların çeşitli yaptırımlarla karşılaşmasının muhtemel olduğu ve böyle bir durumdan uluslararası faaliyetleri yoğun olan bankaların diğer sektörlere kıyasla daha fazla etkileneceği hususları ön plana çıkmaktadır.

As an answer to the international tax evasion problem, the U.S. Congress issued the Foreign Account Tax Compliance Act – Fatca. This Act aims to promote tax compliance among citizens and U.S. residents holding foreign bank accounts. To this effect, Fatca requires Foreign Financial Institutions to enter into an agreement with the Internal Revenue Service (IRS) to provide the IRS information about the identity and the status of the bank accounts held by US persons. Entities not willing to enter into an agreement with the IRS will be subject to a 30% withholding on U.S. sourced income regardless of whether the income is tax exempt. The application of this Act in our country brings a lot of concern regarding some issues, such us extraterritoriality, bank secrecy, the application of civil and criminal law. Since the effective date of implementation of Fatca is July 1, 2014, we understand that an official opinion concerning these issues and the possibilityto enter into an Intergovernmental Agreement with the U.S. government will be forthcoming in the following months.

Foreign Account Tax Compliance Act (FATCA) has become one of the most controversial policies in the United States economic history. Although FATCA aims at increasing the government’s revenue, the policy has regrettable economic and social implications that threaten the state’s future development. Precisely, the policy has direct and long-term implications on investors and investment processes. Therefore, the research examines the manner in which the government uses the policy to strengthen its operations. The study also explores the impacts of the FATCA on investment, policies, digital investment, the determination of the optimal structure of clients, investment psyche, and roles of mobile devices and the legality of the FATCA.

Notes on the current (2016) state of the exchange of fiscal information on on LATAM region and Venezuela in particular.

I. Introducción. II. El desarrollo del Intercambio de Información: desde los Convenios de Doble Imposición hacia la multilateralidad. 1) El Intercambio de información en los Convenios de Doble Imposición según el Modelo OCDE. 2) El Foro Global sobre Transparencia e Intercambio de Información para Fines Fiscales (Global Forum on Transparency and Exchange of Information for Tax Purposes) y el surgimiento y caída de Los Acuerdos de Intercambio Información Fiscal (“TIEA”). a) El Foro Global. b) Los TIEAS. 3) El intercambio Automático de información financiera: el Estándar Común de Reporte (CRS) a nivel mundial, como resultado inevitable de la irrupción de FATCA. III. Conclusiones y Recomendaciones. IV. Bibliografía

Tax evasion and tax havens are the main reasons Foreign Account Tax Compliance Act (FATCA) comes into life. The tax evasion is deterred, detected with the aims of discouraging offshore tax abuses. This process has so far increased the transparency in reporting. Three pillars in FATCA consists of reporting, withholding and due diligence, which supports a good governance. As part of the Hiring Incentives to Restore Employment (HIRE) Act, President Obama signed FATCA into law to help the Justice Department and the IRS to collect tax revenue more effectively and efficiently (Liazos & Solomon, 2013).

A government, in order to run the country, uses taxes paid by individuals and corporations. Even though the tax is an obligation to be paid, there are ways in which it can be evaded through a tax haven and offshore accounts, among many other methods. Every year, tax evasion has caused a government to lost millions and billions of dollars and thus it leads to the introduction of legislation in order to deter tax evasion.

It all started with Foreign Account Tax Compliance Act, which just focuses on the US and with just four years apart, Global Account Tax Compliance Act (GATCA), was established to focus on global tax scene. Foreign Account Tax Compliance Act or most commonly known and abbreviated as FATCA is an initiative by the United Stated of America towards combating tax evasion by U.S. taxpayers holding assets in non-U.S. financial accounts or institutions as well as recouping the much needed tax revenues (STA, 2017).

Forbes reported that an astounding of 77,000 banks and financial institutions have registered with FATCA (Wood, 2014). Even several institutions in Russia have registered under the Foreign Account Tax Compliance Act. America’s global tax law requires foreign banks to reveal American accounts holding over $50,000. Non-compliant institutions could be frozen out of U.S. markets, so everyone is complying. The fact that 77,000 banks have registered and some 70 countries are providing government help to the IRS means almost no foreign account is confidential.

Therefore, the purpose of this paper is to analyse FATCA and its importance on financial institutions. Besides, this paper also studies the effects and implications of non-compliance of FATCA on financial institutions as well.

Purpose The purpose of this paper is to unpack the customer due diligence (CDD) vulnerabilities and to examine and analyze the UAE specific dynamics that make the country exposed to these threats. This research also intends to put on the table suitable solutions and remedial action steps that the UAE government, regulators and financial institutions (FIs) can adopt. Design/methodology/approach This study is qualitative in nature. Findings Despite the impressive regulatory framework and the satisfactory practices by FIs, there still remains some UAE specific challenges that make it difficult to undertake CDD for certain customers. The challenges that were identified include difficulties in Arabic names, complications in identifying the beneficial owners, impediments in establishing the source of wealth/funds, concerns with politically exposed persons, the increasing cost of compliance that resulted in a pattern of de-risking within FIs. Research limitations/implications The internati...

This paper seeks to compare best-in-class AML/CTF regimes established in developed countries (US and UK) versus those in developing countries.

In the second half of the 1980’s, the US came out with its first piece of legislation seeking to criminalise money laundering. Provision 18 U.S.C. §1956 - Laundering of monetary instruments – of the Money Laundering Control Act 1986 (MLCA 1986) outlines three activities, where if engaged, were considered criminal activity within the newly formed concept of money laundering.

Being the ‘brothers in arms’ that they are, it is not surprising to see that in the same year the US enacted the MCLA 1986, the United Kingdom (UK) also enacted its own piece of legislation under the Drug Trafficking Offenses Act 1986 (DTOA 1986), which specifically dealt with the laundering of proceeds obtained from drug trafficking.

Shortly after the US and UK enacted their pieces of legislation that criminalised money laundering, the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Phychotropic Substances 1988 (the Convention) criminalised it at an international level. Article 3(1)(b)(i)(ii) of the Convention calls on each Party to “adopt such measures as may be necessary to establish as criminal offence under its domestic law, when committed intentionally”.

In contrast, the AML/CTF regime in many developing countries, such as the Dominican Republic (DR), could be called incipient, with an evolutionary process that is more akin to one that has been forced on them by external pressures instead of being self-imposed. As such developing countries have proven to be followers when it comes to the AML/CTF legislative agenda. It is here where the Financial Action Task Force (FATF) has played a critical role in updating developing country legislation to meet the AML/CTF challenges of the day.

El artículo describe las características más sobresalientes de la normativa promulgada por los Estados Unidos de América conocida como “FATCA” (Ley de Cumplimiento Impositivo sobre Cuentas en el Extranjero) mediante la cual se pretende que entes no sometidos a la soberanía jurídica de los Estados Unidos de América proporcionen importante información de los contribuyentes norteamericanos.
En este sentido el autor realiza un análisis sobre el efecto que esta normativa (unilateral) ejerce sobre los tratados para evitar la doble imposición que se hayan celebrado con los Estados Unidos, así como la naturaleza jurídica de los actos y convenios que se han celebrado con fundamento en FATCA.

The article describes the highlights characteristics of the legislation enacted by the United States of America known as “FATCA” (Foreign Account Tax Compliance Act) which is intended for entities not subject to the legal sovereignty of the United States of America to provide important information of American taxpayers. In this sense the author performs an analysis of the effect of these (unilateral) rules over
tax treaties which have been concluded with the United States, as well as the legal nature of the acts and agreements that have been held based on FATCA.

O artigo descreve as características mais destacáveis da normativa promulgada
pelos Estados Unidos da América conhecida como “FATCA” (Lei de Conformidade
Tributária de Contas Estrangeiras) mediante a qual pretende-se que entes não
submetidos à soberania jurídica dos Estados Unidos da América proporcionem
importante informação dos contribuintes norte-americanos, neste sentido o autor
realiza uma análise sobre o efeito que esta normativa (unilateral) exerce sobre os
tratados para evitar a dupla imposição que se tenham celebrado com os Estados
Unidos, assim como a natureza jurídica dos atos e convênios que se têm celebrado
com fundamento no FATCA.

Emergence of new models of international administrative cooperation in tax matters is one of the most important issues in the tax landscape of 21st century. In the post-financial crisis period states have resorted to new methods of cooperation, primarily with the aim to curb massive tax evasion via tax havens and offshore centres. The turning point in this regard was the adoption of a piece of legislation in the USA – the so-called Foreign Account Tax Compliance Act (FATCA). Recent years saw the conclusion of special treaties between USA and other countries, aimed at successful implementation of the standards promulgated by FATCA. Even more importantly, FATCA has acted as a catalyst in the area of international exchange of information, as symbolized by the adoption of OECD’s global reporting standard. These developments inevitably have deep effects on relevant legal framework in Croatia. Against this background, main aim of this paper is to analyse the new normative framework for exchange of information in tax matters. Special emphasis is placed on FATCA, since its rules have been replicated by a new multilateral model of cooperation.