HMRC guidance on FATCA tax rules updated

From Accountancy Live -

"HMRC has updated the reporting requirements under the US Foreign Account Tax Compliance Act (FATCA), which may mean that some organisations or taxpayers no longer need to submit a return by the 31 May deadline."

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FATCA compliance a problem? Join our London training workshop

The first reporting deadline for FATCA, 31 of March 2015, is fast approaching. Meanwhile, many foreign financial institutions (FFIs) and associated organisations are still not clear on what they should be doing.

Day after day the phone rings in our offices. And it’s the same question or variations of it… again and again and again.

• “We are an investment firm … and we need help with getting FATCA on track”
• “…small investment bank … our staff are at a loss over FATCA”
• "We have a small problem with FATCA … can you help us getting started?”

FATCA of course refers to the US Foreign Account Tax Compliance Act which became law in March 2010. FATCA targets tax non-compliance by US taxpayers with foreign accounts and offshore assets. To make the whole think work, foreign (to the US that is) financial institutions have to report about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. To solve the extra-territorial and confidentiality issues a whole slew of IGA (Inter Governmental Agreements) have been concluded by the US with just about every country there is.

Under FATCA all foreign financial institutions must disclose US account holders and their account activities. Failure to comply with FATCA will be costly and may subject foreign financial institutions to a 30% withholding tax on US-sourced payments.

If you are not certain or are at a loss as to what you have to do and how this has to be done, this one-day training course is for you. 

REGISTER NOW!


Join Citadel Advantage’s Richard Barr in LONDON – 18 March 2015 for Eureka Financial's "FATCA Compliance Workshop for Foreign Financial Institutions".

This practical course will provide all participants with;

• A sound understanding of FATCA,
• How to identify a ‘US person’ (not simply a US citizen but a much wider scope),
• What ‘US indicia’ are and how they are to be applied,
• An understanding of difference between existing and new accounts at 1 July 2014,
• What the FATCA reporting requirements are (what is reported, how is it reported, when it is reported and to whom),
• An understanding of the progressive reporting requirements over the next several years,
• What due diligence is in the FATCA sense,
• How due diligence is to be performed,
• What constitutes ‘acceptable’ documentary evidence,
• What ‘self certification’ is and how it is accomplished,
• Which financial products are to be reported on,
• Which financial products and services are exempted from FATCA reporting,
• Where to obtain ongoing guidance and clarification ... and much more

The course complies with the FATCA requirements and guidance as set out by HMRC.


FOR COURSE REGISTRATION AND OTHER DETAILS – CLICK HERE

New UBS Tax Evasion Probe, Again Over Americans

From Forbes –
“UBS AG got into trouble with the IRS and Justice Department, launched thousands of voluntary disclosures to the IRS, and changed bank secrecy forever. Eventually, the Swiss Parliament passed a measure enabling banks to hand over client identities to American authorities without violating Swiss bank-secrecy laws. After getting bruised in court battles with the IRS, in 2009, UBS paid $780 million to settle charges that it helped wealthy Americans evade taxes.

Now, UBS faces more of the same, this time over whether UBS helped Americans evade taxes through investments banned in the U.S. This déjà vu comes at an awkward time, as banks everywhere are reeling with FATCA compliance. Meanwhile, U.S. account holders the world over are scrambling to comply to their banks, and ultimately to the IRS.”

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IRS International Data Exchange Service Open for FATCA Filings

From Think Advisor –

“The Internal Revenue Service announced in January that its International Data Exchange Service (IDES) is open for enrollment, and that financial institutions and host country tax authorities will be able to use IDES to securely send their information reports on financial accounts held by Americans to the IRS under the Foreign Account Tax Compliance Act (FATCA) or pursuant to the terms of an intergovernmental agreement (IGA), as applicable.”

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IRS Opens FATCA Data Exchange Service

From AG Web –

“The Internal Revenue Service has introduced an International Data Exchange Service that financial institutions and tax authorities in other countries will use to report tax information under the Foreign Account Tax Compliance Act, or FATCA.

Financial institutions and host country tax authorities will use IDES to securely send their information reports on financial accounts held by U.S. persons to the IRS under FATCA or pursuant to the terms of an intergovernmental agreement, as applicable.”

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Even Non-Owner Signers on Offshore Accounts Face FATCA and FBAR Risks

From Forbes

“Each U.S. citizen and permanent resident must report worldwide income to the IRS even when paying taxes elsewhere. Moreover, you must file an annual FBAR (now called FinCEN Form 114) disclosing your foreign bank accounts if their aggregate value exceeds $10,000 at any point during the year. The penalties for either failure are big, potentially even criminal. FBAR penalties are even worse than tax evasion.

An FBAR violation that is non-willful is $10,000 per account per year. Willful—but still civil—violations can be up to 50% of the value in a foreign account, again, per year. In a recent Florida case, one man had to pay penalties of 150% of his offshore account. An FBAR violation that is criminal is even worse, carrying up to 10 years in prison. You have to file FBARs even if you are only a signatory but not a beneficial owner.’

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