From the back alley of the Compliance Community comes this little tidbit which reinforces concerns about what all those trustworthy banks are going to do with all that shiny US Person customer data once their new FATCA and AEOI (Automatic Exchange of Information to support the OECD’s GATCA) systems get up to cruising speed:
AEOI: Tax reporting doesn’t have to be taxing
From FATCA to AEOI, who knows what the next move will be. And, with confirmation of exact reporting rules around AEOI still up in the air, there is still much uncertainty. The point is that those who continue to paper over the cracks instead of looking for a long term solution run the risk of non-compliance to local and global regulations and reputational damage. On the flip side, financial institutions that adopt flexible technology designed to cater for future unknowns, will avoid any headaches, and have capacity to explore how best to use the new AEOI/FATCA customer data. The silverlining, of course, is that once a firm’s AEOI infrastructure is in place, it provides a goldmine of customer data. Golden nuggets that could then be used for purposes other than keeping the tax authorities happy.
@kermitzii … You ask ….. “With GATCA, if you are Canadian but used to have the American Snake skin, who is there for GATCA to report to?”
The entire world depending on what indicia you have accumulated over the decades on your files. A Canadian citizen (born in Germany) now retired and living in Costa Rica where the scuba diving is year round and beautiful yet who has children and grand children in Canada and Euroland and therefore has bank accounts in a those countries that he or she feeds with regular wire transfers to assist a) the offspring and b) ailing elderly parents remaining in Germany … all those countries will likely claim a data feed from all the others. Canada from whence the pension and the main investment portfolio that is funding this retirement will also take a particular interest in the “world wide web” of normal family arrangements which to a suspicious mind might suggest the dreaded “money laundering” or … gasp … even …. tax evasion … horrors.
@qm
Exactly, it’s so sickeningly discriminatory. The U.S. Government violate people’s rights over something that none of us can see nor control — a place of birth (national origin). What a despicable way to tax people. Tyranny.
Why US taxpayers should do their own taxes:
“…it eliminated the risk of having his personal information falling into the wrong hands. The fact is, no one knows how safe their personal information is after they have left it with their tax preparer. The IRS is in fact grappling with a five-fold increase in taxpayer identity theft since 2008, and is advising that if you use tax accountants, you should query them on what measures they have in place to protect your information.”
http://www.taxconnections.com/taxblog/a-dozen-plus-reasons-why-you-should-do-your-own-taxes/#.VPCMWog76rU