Just in time for US Independence Day, there is a a major blow for IGAs and perhaps for FATCA itself.
James Jatras at repealfatca.com is reporting It’s Official: There Will Be No American Reciprocity
In a letter to U.S. Treasury Secretary Jack Lew, Congressman Bill Posey (R-Florida 8th), a key member of the House Financial Services Committee, has turned thumbs down on Treasury’s public claims that the U.S. will impose on American domestic financial institutions the “equivalent” of FATCA’s ruinous reporting requirements on foreign financial institutions (FFIs). It’s now clear that is not going to happen.
We’ve known for ages Americans would never agree to real reciprocity. Congressman Posey now seems to confirm that. Given the anger in Europe over NSA, this is just going to add fuel to the fire. It could also give Canada every reason to walk away from whatever is happening with those IGA negotiations.
Congressman Posey says:
“Given the evidence above, it is difficult to conceive of any circumstance that would justify imposing such an expensive and counterproductive domestic mandate.”
James Jatras says:
It needs to be understood that this is a denial that will stick…Thus, by sounding the death knell for reciprocal authority, Congressman Posey is sinking the IGAs, and in turn FATCA itself.
Here’s what Posey himself wrote:
“Further delay in FATCA enforcement and a moratorium on negotiating and signing additional IGAs is in order,” pending “substantial modification or, more likely, outright repeal.”
Congressman Posey further suggests Treasury does not have the authority to negotiate IGA and suggests
A cooperative scheme to penalizing tax evasion without harming the innocent.
We’re not free yet, but I hope this will be a great step on the road to freedom.
Happy Independence Day everyone!