The Foreign Account Tax Compliance Act (#FATCA) is a law requiring all foreign financial institutions (FFI) to provide the United States’ Internal Revenue Service (IRS) with financial account details of any American Persons who has accounts with it. If a FFI does not comply, then it is subject to a 30% withholding tax on all its American transactions.
There are arguments for and against #FATCA, and even though I am fully against it, I will try to present both arguments.
- The United States has suffered from tax evasion where its citizens and residents park their nest eggs abroad tax free. FATCA forces other countries to report these monies to the IRS. Estimates of taxes that will be recovered vary from $250 million a year to $792 million per year. The actual amounts received in taxes to date is only about $400 million.
- Since implementation in 2010, the Treasury…
View original post 817 more words