I found an interesting article on FATCA at Financial News this morning that for an “industry” publication is the first I get some sense that they are getting it. A couple of interesting quotes:
“Once countries have got the structure in place to comply with US Fatca, their governments won’t just say, ‘we’ll bear the costs of helping the US gather its tax and leave it at that’. Something will happen.”
That “something” will not be a repeal of US Fatca, Fleming said. The realistic options, he said, are either that every country develops its own version of Fatca, or that a “global Fatca” is developed, where every country has to disclose the assets of every other countries’ citizens under a common framework. He said: “There will have to be a ‘global Fatca framework’ – the alternative is even worse. We couldn’t operate on the basis of 27 Fatcas in the Europe Union, say.”
The significance is enormous, he said: “It will be a global tax system. It is impossible to comprehend how you maintain national tax integrity under such a system; how you get to a global Fatca is an immense challenge.”
A few points they seem to be making:
Many in the financial industry are increasingly taking the view that FATCA and any copy cat legislation is going to be an overriding issue for the rest of the decade.
In closing the authors state that they in fact think the US is playing a “long game” of trying to determine the world’s taxation model.
Unfortunately this article now seems to be pay-walled, but you can sign up for a free four week trial.
OECD Paris Meeting: Super FATCA coming soon.
“Financial institutions already grappling with implementing FATCA will be pleased that the OECD’s starting point is the Model 1 Inter-Governmental Agreement (IGA).”
Another author coming to the conclusion that a global GATCA is in the works,
WHO’S ON THE HOOK FOR FATCA?
OECD plans a tax information superhighway = GATCA
OECD seeks inspiration from FATCA model
In case there was any doubt that GATCA is the ultimate outcome from FATCA
Just another Copy Cat story seeing FATCA as becoming the standard for a global GATCA…
#FATCA: Rapidly becoming the global (#GATCA) model for combating offshore tax evasion – @JamaicaGleaner http://www.iriejamradio.com/what-s-trending/jamaica-gleaner-latest/1684-fatca-rapidly-becoming-the-global-model-for-combating-offshore-tax-lead-stories-jamaica-gleaner-wednesday #CopyCat
FATCA fallout in the copy cat realm continues to spread.. OECD now has 30 countries working on their GATCA spurred on by FATCA. Of course, they will make an exception for U.S. Citizenship taxation to try to have the U.S. join their model. Wonder what conflicts will occur?
More than 30 Countries Working on the OECD’s Common Reporting Standard
On November 28, 2013, more than 30 countries released a joint statement announcing their commitment to early adoption of the Common Reporting Standard (CRS) that is being developed by the Organisation for Economic Co-operation and Development (OECD).
The CRS draws on the U.S. FATCA regime and contains the reporting and due diligence standard that supports the automatic exchange of financial account information within the countries joining this initiative.
The countries announcing their support to the single global standard of automatic exchange of information are:
See the list… http://www.fsitaxposts.com/2013/12/13/30-countries-working-oecds-common-reporting-standard/
BTW, South Africa is involved with the experimental application of this, and a Linkedin Comment to me described progress this way…
I just updated to Windows 8.1 today. It is really difficult to turn off the feature that backs up every file on your computer to the “Cloud”.
I think it is time to Icelandize.
Note this headline of Deloitte’s Jim Calvin blog…
DBrief Webcast: GATCA – Globalization of FATCA and Multilateral Exchange of Tax Information
The OECD is developing a framework for multilateral automatic exchange of tax information based on the Model 1 Intergovernmental Agreements (IGAs) for the U.S. Foreign Account Tax Compliance Act. This global Automatic Exchange of Information (AEoI) is sometimes referred to as global FATCA or “GATCA”. Delivery of this framework is on an ambitious timetable, with the requirements to be finalized in early 2014 and exchange of information scheduled to commence by the end of 2015 among G20 members. We’ll discuss:
What are the main requirements of GATCA?
What are the significant differences between FATCA and GATCA, particularly for exemptions and concessions?
What are the key issues and concerns raised by financial institutions and advisers to date?
What might financial institutions in Asia Pacific consider doing now to prepare for GATCA?
Understand how your financial institution will be affected by GATCA and consider the impact of GATCA on current FATCA implementation programs.
I am beginning to think I have had the ordering of the evolution of FATCA wrong…
I started early on saying FATCA begets DATCA begets GATCA…
but watching these developments, I am beginning to think it goes like this..
FATCA begets GATCA and forces DATCA onto U.S. shores.
The international convention creates pressure to force onto America that which it would not accept otherwise. Then again, we could just thumb our noses at the world like we did with Kyoto Protocol
The G20 is of the opinion that the auto exchange of info as modelled by #FATCA has to become new global standard GATCA http://bit.ly/JFgHfX
The IRS has prepared the software exchange method to implement DATCA—giving Domestic bank data from USA to foreign governments. When did Congress vote on that? How much did that cost? How did that effect the budget over-runs? Who gets to make new laws in DC that regard all of USA’s banks? …. http://www.irs.gov/Businesses/Corporations/International-Data-Exchange
From FATCA to GATCA: the move towards global tax information exchange
I see some others are picking up my theme…
I started out a couple years ago saying… FATCA begets DATCA begets GATCA,
I figured a domestic DATCA was essential for a global GATCA to work, and this would be the progression, but as I have said previously… I am beginning to think I got the order wrong..
FATCA begets GATCA and then forces a DATCA onto the USFIs. Was this what Congress intended? I think not. But, the FATCAnatics in Treasury may have had this as a strategy. Create an International movement that becomes so large, Congress is forced into imposing FATCA like provisions (DATCA) on the USFI. Whether or not they thought that far, I do not know, but that is certainly what is happening.
Forget FATCA – GATCA’s on the way, warns tax expert – See more at: http://www.iexpats.com/forget-fatca-gatcas-way-warns-tax-expert/#sthash.Y0lVdgx9.dpuf
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