This article, which provides perspective on FATCA from Russia is a very interesting read.
FATCA: A new generation of American laws – Of particular interest is a characterization of FATCA that:
It belongs to a new generation of American laws , which can be called extraterritorial . These are the laws that apply to a number of other countries , and sometimes even the whole world . These are laws that help build Washington Pax Americana.
FATCA: A new role for the IRS – The IRS Commissioner will govern the world
We are witnessing a unique alignment of the global system, “head” which is the U.S. agency , and all financial and banking organizations formally sovereign states coming under the administrative control of this department .
The article referenced in the tweet from FATCA_fallout is written in Russian by a Russian. I don’t understand Russian so I ran it through Google Translate. Assuming the accuracy of the translation, the article is revealing. I have bolded some of the more interesting parts.
Abbreviation FATCA increasingly common in the Russian media . So short is called American law , the full name of which : Foreign Account Tax Compliance Act. In translation : “On the Foreign Account Tax Compliance .” FATCA directly affect the interests of Russia . As the Russian authorities react to this law?
VY Katasonov prof. , Ph.D., chairman of the Russian Economic Society them . SF Sharapova
FATCA AS A TOOL FOR BUILDING PAX AMERICANA
The law was signed by U.S. President more March 18, 2010 . Then began its gradual enactment . The next year, he should enter into force in its entirety. It belongs to a new generation of American laws , which can be called extraterritorial . These are the laws that apply to a number of other countries , and sometimes even the whole world . These are laws that help build Washington Pax Americana.
FATCA law was passed under the pretext that the U.S. Treasury regularly loses a large amount of taxes to withhold individuals and legal entities the U.S. , bringing their income and assets outside of U.S. jurisdiction . The American tax system is set up so that individuals and legal entities must pay U.S. taxes regardless of where the income and asset allocation . Only on departure of U.S. citizens and companies in the offshore, according to some estimates , the U.S. federal budget annually loses about $ 100 billion and how much he loses by U.S. citizens and companies in other jurisdictions , no one believed . For many years , even decades, Washington tried to fight tax deviators located outside the country , but the effect was short .
Act FATCA, according to its initiators , should put an end to such deviators once and for all . How? – Making the banks and some other financial institutions all over the world by the American Tax Service (IRS –). Financial and banking organizations must transmit to IRS information about their customers with U.S. origin or having a business (commercial ) due to natural and legal persons U.S. . In the list of customers , among others, and included persons who are holders of U.S. green card. If necessary, such agents should engage even the recovery of taxes from such customers in favor of the United States.
We are witnessing a unique alignment of the global system, “head” which is the U.S. agency , and all financial and banking organizations formally sovereign states coming under the administrative control of this department . Those who refuse to Uncle Sam‘s invitation to become part of this system , are automatically ” outcasts .” Against such financial and banking institutions , Washington will impose sanctions in the form of withholding 30 % of the funds that such organizations will conduct through the U.S. banking system . And since the modern world financial and banking system is based on the dollar , it’s hard to imagine a bank that would not exercised dollar transaction. All such transactions pass through the correspondent accounts of non-US banks in U.S. banks . One gets the impression that the fight against tax deviators Washington – just an excuse to enactment . Home is not advertised purpose of FATCA – build a global financial system , the individual “cells” which is not only economically , but also administratively subordinated to official Washington and that the financial oligarchy , whose service is formal authority USA.
FATKA13.jpgMIROVAYa REACTION TO FATCA
So, in the next year, all non-US banks have to start practical work to assess and customers falling under the definition of ” American taxpayers “ and at the end of the year ( according to other sources – in March 2015) to submit their first reports to the IRS. Accordingly Washington sanctions against non-US banks , evading honorable duty ” U.S. tax agent ” can be used to start a year and a bit.
It is not hard to imagine what the reaction around the world called the law . Foremost among U.S. citizens. Began renting U.S. passports , U.S. citizens do not want to be under the ” hood » IRS. Several million Americans live permanently outside the United States , they will first give up U.S. citizenship .
It is not necessary to speak about the reaction of non-US banks and financial institutions . Statesmen and politicians in several countries grumbled , grumbled , calling the law a manifestation of the “American colonialism” , but were built by a team of Uncle Sam .
Especially because Washington has made some concessions . He invited other countries to a two-tier system : non-US banks provide information on U.S. taxpayers not directly the IRS, and their national tax authorities . And those , in turn, has sent her to Washington. To do this, Washington was asked to sign the relevant bilateral intergovernmental agreements between the United States and other countries on the implementation of FATCA. About 50 states have expressed willingness to sign such agreements . Hastened to conclude agreements , countries such as the UK , Denmark, Germany, Hungary, Ireland, Japan , Mexico, Norway , Spain , Switzerland. A few days ago the media reported that signed six agreements – with Malta, Bermuda and three dependent territories of the United Kingdom ( Islands of Jersey, Guernsey , Maine ) . Thus, at the end of this year, the number of bilateral intergovernmental agreements on FATCA to 18. Banks of those countries that do not sign the intergovernmental agreement , must go into the ” direct subordination ” of American Tax Service .
SVINI8.jpgREAKTsIYa RUSSIA ON FATCA
And as Russia reacted to the law FATCA? Start ( 2-3 years ago ), the reaction was sharply negative . In particular, the Russian Foreign Ministry described the law as an attempt by Washington to impose its diktat to other countries of the world. Then in 2012 came the band complete silence . Our government would not acknowledge the law FATCA, no measures were taken . Only occasionally by our officials made comments that if Russia started to fulfill the conditions FATCA, it would enter into conflict with the Russian legislation. In particular , FATCA provisions contradict the Russian banking secrecy and the Civil Code as regards contractual relations gap ( if the Russian bank closes the account of American draft dodgers tax ) . Some Russian banks are nervous , knowing what position they would be if Russia does not sign a bilateral agreement with the United States. Then , without much from posting , departments “top” command was given to prepare their proposals for amendments to the Russian legislation to bring it into line with the new conditions generated by FATCA.
Only in 2013 occurred as a ” perturbation “, which is periodically backed up by Finance Minister A. Siluanova that Russia is preparing a bilateral agreement on FATCA. About our angry statements two or three years ago , no one remembers .
Siluanov spring promised that, say , to the end , an agreement will be signed . Is the end of the year , it has not yet been signed. What do the banks? The new chairman of the Bank of Russia Nabiullina said recently that banks before 2016 will not be able to prepare for compliance with FATCA. But Washington is relentless , states that any delays is not going to give . Incidentally, it is not only the time but also money. Back in the 2012 Non-Profit Partnership “The National Payments Council ” conducted a survey of 36 Russian commercial banks in order to find out how they are preparing for the implementation of FATCA and what are their capital and operating costs associated with implementation. Only the initial cost of buying the software , training , creation of methodical base must be at least $ 1 million per bank. Ie across our banking system is about $ 1 billion. This sensitive issue is bypassed . According to the ” default ” is the cost of Russian banks. And good it would have to be the cost of the one who all this ” mess ” brewed . Ie costs would have to be covered by the U.S. Internal Revenue Service .
But, however, all this stuff on the background of the problems that may arise from Russian banks after that will come into full effect to the law IRS. After all, even a bilateral agreement with Washington is not a guarantee against possible sanctions. May become subject to sanctions and our state ( if the IRS deems that the Tax Service is not enough zealously fulfill the requirements of the law and the agreement ) . Subject to sanctions can be taken separately and the Russian bank . Recall how in the middle of the last decade, Washington instructed to close many Russian banks correspondent accounts in U.S. banks only on ” suspicion” of money laundering and terrorist financing . I do not exclude that if U.S. lawmakers had the idea to legalize the ” Magnitsky list ” , then eventually in America may appear as a “black list” of Russian banks that violate FATCA.
SVINI6.JPGO RUSSIAN , FATCA AND OUR ” ELITE ”
However, from any adversity there is an exit . A way out of the situation called «FATCA» was from the beginning and from Russia. I recall that Washington within the scheme of bilateral intergovernmental agreement offers two basic variants . Conventionally, they can be called ” asymmetric ” and ” symmetric ” version of the Agreement . The first assumes that the foreign country takes unilateral commitments to implement the conditions dictated by U.S. law FATCA. The second option assumes that the two contracting parties undertake to provide the necessary information to the other side of the tax that may apply to legal entities and individuals of its State. In the second embodiment, the foreign country and keeps his face and solve its fiscal problems by identifying their tax evaders in the United States .
Preparation of agreement with the U.S. Treasury to our over several months was conducted in complete secrecy . Unofficial sources claim that both options were discussed . Finally, in October , our media have reported that the Russian Ministry of Finance is preparing a very radical agreement, which even differs from the “symmetrical options offered by Washington. Document called an intergovernmental agreement on the exchange of information of a fiscal nature . It is not at all mention of American law FATCA, the agreement looks like a mutually beneficial agreement between two sovereign and equal states . This can be only be pleased.
But that’s about a month ago (28 November ) at the Prime Minister DA Medvedev listened to the preparation of the agreement. Prime Minister instructed the Ministry of Finance and the Central Bank ” accelerate ” and prepare an agreement to January 20, 2014 It’s okay. Troubling more. Many media disseminated by the following information: “Medvedev is the first publicly supported the agreement and even mentioned FATCA, he instructed to prepare a draft agreement ” to implement the provisions of U.S. law . ‘” Some commentators have not noticed anything . According to them , they say, is a game of words, the essence of the agreement does not change. I’m afraid that’s not true . It is because the “top” can not agree which option to choose ( “symmetric ” or ” asymmetric” ) , so long in preparation of the agreement. Translated into plain language Medvedev’s words can be interpreted as follows : prepare an “asymmetric ” option.
Who benefits from this , I think that’s obvious . America for many of our kleptomaniacs ( oligarchs and officials ) has been a long time, ” promised land .” There hiding untold riches , the stolen over the years of so-called “reforms” . Naturally, they are not declared and never accounted for . However, some estimates are available . The most famous of them belongs to “friend” Russia Zbigniew Brzezinski . This American politician , communicating with our scientists at the missile defense issue , noted that he ” did not see a single case in which Russia could resort to its nuclear capability , while U.S. banks is $ 500 billion , belonging to the Russian elite . – And then he added : you will still be examined , whose elite is – yours or ours already . This elite did not link their fate with that of Russia . They money is already there, kids are already there …. “.
D. Medvedev said before finalizing the agreement period remained about three weeks. So soon we will learn how Russia intends to build its relations with Uncle Sam under FATCA. This agreement will be very accurate indicator showing , whose same elite are senior officials of our government.
- The two faces of #FATCA: Public for the banks and private for #Americansabroad (renounceuscitizenship.wordpress.com)
- IRS Publicizes FATCA As Jan 1st Draws Near (renounceuscitizenship.wordpress.com)
- #FATCA is sure to create and exacerbate tensions between Homelanders and #Americansabroad (renounceuscitizenship.wordpress.com)
- FATCA Headed For Catastrophic Collision (renounceuscitizenship.wordpress.com)
- #FATCA Class action lawsuit against one or more of the Canadian banks (renounceuscitizenship.wordpress.com)
- Required reading for countries considering a #FATCA IGA with the US (renounceuscitizenship.wordpress.com)
- TIGTA’s FATCA Report – Is the FATCA portal development better than that of the federal medical insurance exchange? (profwilliambyrnes.com)