As long time IBS readers have known, we have been saying that a global GATCA was the ultimate goal of the FATCA mis-adventure. It was the dream of the ideologues in Treasury and the IRS who who have been responsible for the implementation of FATCA.
The most recent posting about GATCA on Isaac Brock in this article by Alex Newman
Update 2/17: Alex has a new article out…
Maybe Obama, when he launched his offshore jihad didn’t understand what he was doing. (video here) Maybe Congressman in their FATCA PR announcements back in 2009, were just witless vassal’s and didn’t know it. Certainly few Congressman knew they passed it hidden in stealth in the Hire Act, but this is what we now are getting. A gotcha GATCA!
If you search for GATCA terms in archives you will find other earlier pieces last year like here, and the references go back farther in the comments. We were watching for the blow back onto domestic shores in the form of the reciprocity DATCA, the history of which is documented here., but it is beginning to look like that GATCA will get here first. Will America’s Congress accept it? Time will tell, as they say.
Today, after a lot of anticipation, we now have the official birth announcement, on the web site of the OECD , Jesse Eggert’s new employer.
Get used to the new acronym that is common in the OECD and FCC (FATCA Compliance Complex) parlance,
AEOI or Automatic Exchange of Information.
I have a feeling you will be seeing it or some variation of it more often now.
Bottom line, AEOI = GATCA and this monster was created by the Union of its FATCA Father and OECD mother.
I am moving some discussion around this subject from Alex’s thread, because I think it is important you read and consider how this GATCA will factor into the CBT (Citizenship Based Taxation) reporting requirements under FATCA, and the RBT (Residency Based Taxation) reporting under GATCA.
How does that work? Will the U.S. just meekly acquiesce and accept this new global norm, which came from Treasuries Robert Stack’s “Gold Standard”? What if they don’t?
Also, notice how this is already factoring into the FATCA IGA acceptance thinking of affected FFIs. If I were a country faced with signing one of these, I think I would be confused. Which way am I supposed to go? How do I reconcile the conflicts. Do I do both, or do I accept FATCA as supreme over GATCA? How do I reconcile the conflict claims of types of taxation?
GATCA is born:
Here is the most relevant information:
“The OECD’s top official for financial issues, Pascal Saint-Amans, said the OECD’s proposed standard is in effect a multilateral version of the US FATCA, or Foreign Account Tax Compliance Act.
One major difference, however, is that the OECD standard will be based on a residency test rather than nationality, according to OECD officials.
It will cover not only bank deposits, but interest paid and capital gains.
It will also require reporting of the ultimate beneficiary, which should hinder the use of trusts and shell companies to evade tax liabilities.
Saint-Amans acknowledged, however, that gold and other precious metals will escape the system as banks aren’t forced to open their vaults and safe deposit boxes, (YET!) and this could pose a problem.”
Noone goes onto say….. The US needs to scrap FATCA and adopt the OECD system. As long as FATCA lives, with the withholding threats, discrimination of Americans will continue, even with a global OECD GATCA.
look at this comment in a FATCA submission to the NZ Select Committee hearing 2 days ago from NZ AMP…
“We submit that as it does not seem to be feasible under the wording of the draft IGA to separate “review, identify and report”, Financial Institutions must be allowed to identify and review ALL accounts. We further submit that they should be allowed – for consistency with the new global standard for automatic exchange of information – to report on ALL accounts, regardless of balance.
This is going to get ugly ……
@just me … “this is going to get ugly.”… agree agree agree…. see caracalla “as long as we have this [pointing to his sword]… we shall not[be poor]“……………… waiting and watching for [i am] the establishment of other global reserve currency……………….
OECD Releases Draft of Radical Country-by-Country Reporting Template