US rethinks offshore tax evasion reporting rules

[alp227]

The US has responded to pressure from foreign governments and financial institutions over its crackdown on offshore tax evasion by proposing a significant change in how it will implement stringent reporting rules for overseas banks.

Officials held talks with their European Union counterparts in Paris last week about the scope for bilateral agreements, under which European banks would transfer data on US citizens to their national authorities which would then pass that information on to Washington.

The new approach to the Foreign Account Tax Compliance Act is being explored in response to concerns that forcing overseas institutions to report details of their US clients directly to the Internal Revenue Service would breach privacy laws.

The European Commission said: “The discussions with the US are very constructive, and we’re optimistic we’ll be able to find a mutually acceptable solution that will make it possible to implement Fatca in a business-friendly way.”

full: http://liveweb.archive.org/http://www.ft.com/cms/s/0/06b0f614-4a8e-11e1-8110-00144feabdc0.html

[Sen. Walter Sobchak]

1. This policy predictably became a farce

As instead of targeting major league tax evaders, many if not most of those caught up in this dragnet have been children of American expatriates who are either oblivious to their status as theoretical American citizens and or their extraterritorial tax obligations. It gets sillier still as most wouldn't even owe any taxes to begin with.

It gets worse still since the overseas private banking industry is restructuring itself in ways that take it out of any conceivable claim of US jurisdiction. Does this mean that well heeled American tax evaders will be deprived of their services? Nope. Their lawyers will just have to take a couple extra steps.

[glinda]

2. Makes one wonder doesn't it? If we boast to be such a strong Country then

why can't we stand up to pressures and take care of our people?
We have no right if we don't show that we can really be strong.

[sarcasmo]

3. The 1% run the show.

[emilyg]

4. All ways. Always.

[CollegeDem20]

5. What are the chances of this happening?

[truthisfreedom]

6. All Fatca needs is one more little 't' to finish the description.

[newblewtoo]

7. Speaking of Fatcats, this just reminded me of

the Swiss bank account information which was supposed to be released. Did that ever happen?

Did I just miss it?