A new idea for FATCA reform has been suggested, and discussed by Democrats Abroad. Brockers might like to discuss it also. Is this a workable solution or just another complex piece of patchwork?
A new idea for FATCA reform has been suggested, and discussed by Democrats Abroad. Brockers might like to discuss it also. Is this a workable solution or just another complex piece of patchwork?
Today is Budget Day in the UK.
More FATCA discrimination in today’s UK budget.
The UK Government announced the following measures (provided they get elected):
– New £1000 allowance for tax free interest (US Persons will not benefit)
– New £3000 allowance for first time home buyers (will a UK bank give this to a US person?)
– New flexibility in ISAs and withdrawing from pension funds (again if tagged a US person no value)
Why shouldn’t all resident UK citizens (or EU) benefit from these UK Government changes?
The US Government has no right to tax these items.
There is a couple of thought I had about data collection by the banks.
Is there any legal way to impede their data collection?
For example, cherry picking customers to fill in W9s. It would be a real pain in the neck for banks if every customer had to fill in a W9.
There must be some legal avenues to make it tougher for FFIs to achieve the data collection and more costly.
@Don
The criteria put forth by the USA to determine “US person” status is so wide in scope that banks should really be demanding each and every customer to fill out either a W-8BEN or a W-9. Anything else is arbitrary selection, discrimination, and, as you put it, cherry picking.
Of course, whether it’s possible or desirable to force banks to do this is another question entirely.
@Deckard: Thank you for the photo! …. it’s a terrific addition to such a short post … and it *does* say it all!
http://www.out-law.com/en/articles/2015/march/uk-financial-institutions-will-not-be-required-to-file-fatca-nil-returns–other-territories-could-follow-expert-says/
IRS trying to make FATCA more palatable for FFIs.
I guess that is just further incentive for all FFI’s to cleanse themselves of US person account holders. The IRS is rewarding them for a job well done.
Harper doesn’t have the balls to do anything but cave into Obama’s demands.
@don…but the IRS expects all US persons to file a nil return..outlandish
@Don. Just for the heck of it I asked my bank the what if question. Suppose I refuse to fill out this bloody W9 form. I was told that that would the the end of our banking relationship. Plain and simple. Yes, they are all caving in to Obama and his clowns. The EU in Brussels does absolutely bugger all about this issue. They are a total waste of tax payers money.
I hear that Canada is joining the AIIB. True or false?
@nervousinvesror. I hope they will and show Obama and his cronies that the game they are playing is going to hurt them in the long run.
The Hill: March 16, 2015, 02:00 pm
Will Australia, Canada and others follow Britain to the new China bank?
“Et tu, Canada? I asked Irvin Studin, founder of Global Brief magazine, who worked a number of years in the privy council Office (prime minister’s department) in Ottawa.
“Of course Canada should play a role in the new bank,” he said. “China is our neighbor to the west, and we should be aggressively pivoting thereto. This century, Canada will have four neighbors — not just one: ACRE, that is America, China, Russia (to our north; Canada and Russia are the Arctic giants), and Europe.”
If Britain goes first and paves the way for the rest, a tectonic shift could occur in Western leadership and influence.”
http://thehill.com/blogs/pundits-blog/international/235820-will-australia-canada-and-others-follow-britain-to-the-new
A thought about the AIIB developement. The US will know its world has changed when oil is quoted in both US dollars and Chinese RMB.
Picture this a barrel of Brent Crude $55.42 / ¥ 343.60.
Can’t wait for that day.
@Eric
Banks in the EU can say they will end your banking relationship today, but sometime in 2016, they will be forced to provide you a ‘basic bank account’ as per EU rules as long as you’re an EU citizens. So as far as the EU is concerned, the banks in theory will have to change their tune.
I’d be tempted to give them a incorrect SS number or say that you don’t have one. How on earth are they going to know the difference. What’s the IRS really going to do if you give them bad data?
What an interesting thought. Truly, all the financial institution cares is that they have the form, which makes them compliant. And if it contains a ‘regrettable error’ of a couple digits switched in the SSN, what might the consequences be?
Thus, if someone, say, doesn’t want the tangled mess of reporting ownership of or income from a ‘foreign’ retirement fund, yet the bank or insurance company makes you file the form, is it possible that a SSN ‘typo’ can keep it off the radar?
Speaking of ‘tricks’, I wonder if another way around FATCA, FBAR, etc. is to legally change one’s name in the country of residence. In my country, it’s not a difficult process, and as a holder of a permanent resident ID card, they don’t care if the name on my ID matches my US passport. Thus, if my legal local name was Betty and my US passport is Barbara, and I make a ‘mistake’ on my social security number on the W9 filed with my local bank, then how on earth would the IRS ever find me? Would they eventually challenge the bank about the false SSN or the name/SSN mismatch?
Just scouring for stop-gap solutions short of renouncing.
Safe harbor?
I think I will hold out.
@Don. What a couple of lovely wrenches you have thought of to jam in the FATCA gears!
Is it sure that “basic banking” in EU is not a country-wide requirement (one bank in each country) rather than “basic bank account” at every bank?
@barbara, single digit errors in your name, Ssn -and- birthdate should stymie most basic automated matching routines. And I thnk your analysis of motives is correct; the bank only has a stake in meeting filing obligations, having the forms filled in, getting correct information is not at the top of their priority list.
@Don Further to YOUR thought about the AIIB developement. The US will know its world has changed when oil is quoted in both US dollars and Chinese RMB.
Picture this a barrel of Brent Crude $55.42 / ¥ 343.60.
Better yet, Picture this …. a barrel of Brent Crude ¥ 343.60.
I believe I wrote that the Netherlands also joined the AIIB. More countries to follow.