Fatca

[Chris]

The Foreign Account Tax Compliance Act (FATCA) has been featuring more in the news recently as the implementation date draws nearer. From what I'm reading, this act is nothing more than the US invading the privacy of foreign nationals in order to grab at money.

What are your thoughts on it?

[ramesh]

Accordign to KPMG:
http://www.kpmg.com/global/en/issues...a-impacts.aspx

this should only affect US taxpayers.

[Chris]

So if someone has a US mailing address and travels to the US frequently and cumulatively spends over 2 months/year they're not affected? That's not what the Jamaican media is reporting from Jamaican bankers. I dunno.

[ramesh]

You could be right. According to the Gleaner it's worse:

Jamaicans who frequent the United States (US) - including merchants, athletes, pilots and entertainers - should soon expect to see their income and savings above US$50,000 disclosed to that government under a measure to catch tax dodgers called the Foreign Account Tax Compliance Act (FATCA).

FATCA aims to capture and tax, if necessary, income earned outside the US for its citizens, green card holders and institutions. However, regular Jamaicans without a US green card are subject to the measure provided they travel to the US for about two months each year.

http://jamaica-gleaner.com/gleaner/2...ead/lead2.html

One Jamaican tax expert is raising concern that a new United States tax law expected to take effect on January 1, 2013 could lead local banks and other financial institutions to increase their fees.

Allison Peart, who is a partner at the accounting firm Ernst & Young, said the increase could come as these institutions begin to implement measures that will enable them to comply with some of the stipulations in the legislation.

http://go-jamaica.com/news/read_article.php?id=36990

The survey, which was conducted by Johnson Survey Research Limited last month, showed that more than a third of the respondents indicated that they would "probably" close their accounts at any local financial institution that passed their information to US authorities as is stipulated by FATCA.
In addition, it also revealed that 40 per cent of respondents expressed the view that Jamaican financial institutions should not hand over their information, even in the face of the stiff penalties that could be imposed for non-compliance.

Twenty-six per cent said they would "probably" provide the information requested, 15 per cent said they would have no reaction, and 22 per cent said they "don't know what they would do at this time".

Said Jarrett: "Markets are very dynamic, but what we do know is that there is going to be a reaction. People have told us so through the survey that they will be moving their accounts out of institutions that comply (with the law)."

However, the JNBS boss, who was speaking during a Gleaner Editors' Forum held at the newspaper's central Kingston offices, said the legislation could create opportunities for new players in the financial sector.

"It does leave the door open for new entrants," he said.

"You could find somebody establishing a financial firm that could say that it will be FATCA-proof and, as long as it just does domestic business, it could well do that," he reasoned.

http://jamaica-gleaner.com/gleaner/2...ead/lead3.html

[Chris]

Yup, saw those. So as I said, the US is seeking to control the world through the financial system. That's essentially what it comes down to. What do you think would happen if another country tried doing what the US is doing?

[ramesh]

Ha! I would say "FAT" chance!