The US Tax code will require ALL foreign countries banking institutions to report certain tax information back this country….
The piece below lets on how the regulations have cast cold water on American’s trying to hide income.
The law, which was passed by a majority Democratic Congress, was to force American’s to declare monies sent oversea’s to avoid being taxed….
The piece paints a picture of American dollars being shunned….
I somehow doubt EVERY foreign countries bank and other institution are gonna close their doors to American’s on this…
I DO think that publicity on this IS going to get the Republican’s in the House looking for a way get rid of the law….
Image that though?
Having to actually NOT be able to squirrel away money from being taxed…..
I wonder how much money this involves?
That’s what some of the world’s largest wealth-management firms are saying ahead of Washington’s implementation of the Foreign Account Tax Compliance Act, known as Fatca, which seeks to prevent tax evasion by Americans with offshore accounts. HSBC Holdings Plc (HSBA), Deutsche Bank AG, Bank of Singapore Ltd. and DBS Group Holdings Ltd. (DBS) all say they have turned away business.
“I don’t open U.S. accounts, period,” said Su Shan Tan, head of private banking at Singapore-based DBS, Southeast Asia’s largest lender, who described regulatory attitudes toward U.S. clients as “Draconian.”
The 2010 law, to be phased in starting Jan. 1, 2013, requires financial institutions based outside the U.S. to obtain and report information about income and interest payments accrued to the accounts of American clients. It means additional compliance costs for banks and fewer investment options and advisers for all U.S. citizens living abroad, which could affect their ability to generate returns.
“In the long run, if Americans have less and less opportunities to invest overseas, it would be a disadvantage,” Marc Faber, the fund manager and publisher of the Gloom, Boom and Doom report, said last month in Singapore.Share on Facebook