Saturday, November 22, 2014

                             CAN WE HAVE A LAW LIKE 'THE FOREIGN ACCOUNT
                             TAX COMPLIANCE ACT (FATCA)  OF USA?.

                  The Foreign Account Tax Compliance Act is a U.S.Law enacted in
                  2010 as part of the Hiring Incentives To Restore Employment (HIRE)
                  Act. FATCA requires financial institutions outside the United States
                  to determine whether it has any customers who are U.S.Citizens and
                  report information on all of those customers' accounts to the Internal
                  Revenue Service (IRS).Any bank refusing to comply will be assessed
                  an automatic withholding Tax on its US source income.Eventhough
                  it has not even  fully gone  into effect yet (the first information 
                  exchange will take place in 2015),the law is widely viewed as a
                  'game changer ' in global information exchange and helped pave 
                  the way for other countries' commitments to a multi lateral
                 information exchange system. Source : Global Financial Integrity.

                 The G-20 nations declared in 2013 that the automatic exchange is
                 "the new Global standard" & pledged to begin exchanging
                 financial information automatically by the end of 2015.

                Global Financial Integrity estimates that in 2011,US$946.7 billion
                left developing countries in illicit financial outflows.

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