One thought on “Required reading for countries considering a #FATCA IGA with the US

  1. renounceuscitizenship Post author

    This post also appeared at the Isaac Brock Society. The following comment by Just Me should be added here:

    http://isaacbrocksociety.ca/2013/12/07/required-reading-for-countries-considering-a-fatca-iga-with-the-us-pmharper-take-note/comment-page-1/#comment-772772

    As usual, you put the narrative together VERY well, and are so correct! and they all clamor to comply…

    See this comment…

    http://isaacbrocksociety.ca/2013/11/24/stopping-fatca-in-switzerland/comment-page-4/#comment-771244

    Innocente says
    December 7, 2013 at 6:44 am

    The print-edition of the Handelszeitung (HZ) has an interview with the Paolo Cornaro (PC), CEO of Corner Bank, a credit-card bank in Switzerland. He seems to indicate that the tax deal between the Swiss and the US governments is more about extortion than about an agreement (translated):

    “HZ: The US tax dispute is further along. How do you judge the agreement?

    PC: This program, which I cannot characterize as an agreement with good conscience, strikes all banks as a block. It does not make a distinction between banks which consciously went on American soil to acquire customers and those banks, to name an extreme example, that opened accounts for two Swiss who were also coincidentally in possession of US citizenship. We know today which banks are Category 1. Since we never actively pursued American customers, we should be in Category 3. With this view, however, we are exposed to the risk in the event that documentation is not water-tight that we would have to accept additional liability.

    HZ: You must decide no later than December 9?

    PC: It certainly could happen that there are banks which will not be so far. We will classify ourselves in Category 2 in order to avoid further discussions and risk a penalty. We have American customers who are properly declared. The program’s concept is however that all are tax evaders. Then we must prove that this is not the case.

    HZ: What kind of penalty are you looking at?

    PC: I cannot and do not want to mention a number. We want to close a chapter by paying a penalty and then can we look forward again.

    HZ: You will pay in order to have peace and quiet?

    PC: Yes. We found ourselves in a similar situation in connection with the “unidentified accounts” matter. Our bank was founded in 1952 so there was certainly no unidentified accounts coming out of the war. We decided to pay anyway. Towards the end of the matter the actions were directed at all Swiss banks. If we wanted to continue with a US dollar clearing account, we had to pay. It didn’t matter whether we were guilty or not. We booked the payment as a solidarity contribution. Also at that time we wanted to simply conclude the matter.”

    Do they really think this just conclude the matter so simply? Extortion at a grand scale.

    as James Jatras so eloquently said…

    Who is advising these people? How naive can they be? They really think an admission of guilt is the end of their ordeal, not just the beginning? Once the Mark of Cain is stamped onto their forehead it never comes off.

    Reply

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