Toxic Tax Act (FATCA) Is In Trouble

Here might be a ray of hope for us.
Nigel Green says FATCA, America’s New Toxic Tax Act, Is In Trouble.

Mr. Green gives two reasons for believing FATCA is “running out of steam.”

Firstly, the US Treasury Department has again failed to meet its own end-of-year deadline to publish the FATCA rules, one of the key steps in its implementation.  This is the second time that the Treasury Department has missed such a deadline – the first one came and went in September 2012.

Secondly, to date, only the UK, Denmark, Ireland and Mexico, plus a handful of British Crown Dependencies, have signed FATCA’s required Intergovernmental Agreement (IGA).  The Treasury Department had hoped to finalise IGAs with many others, including Canada, France, Germany, Italy, Japan, Spain, and Switzerland before the end of 2012. It failed on that too.

Mr. Green does expect IGAs to be signed and regulations to be released.  Yet, he remains optimistic:

But there’s no getting away from the fact that the campaign to introduce FATCA appears to be floundering.

As most of you know, Mr. Green also had a thread last week, FATCA Good Or Bad: You Decide.  Some familiar names and a few new ones are in the comments.  All “decided” FATCA is bad.  If only these were the real decision-makers!

Let’s keep up the pressure as FATCA flounders.





25 thoughts on “Toxic Tax Act (FATCA) Is In Trouble

  1. Pingback: What a FATCA IGA “would” mean for non-compliant U.S. citizens abroad « Freedom from the tyranny of U.S. citizenship-based taxation for U.S. and dual citizens outside the U.S.

  2. Tim

    FATCA Final regs have been “released” although can’t as of right now find an actual copy on the internet. No IGA’s signing other than Norway “initialing” an agreement.

  3. schubert

    @Blaze. The Star article very fairly points out that the Liberals are as up to their armpits in this as are the Tories.

    All the more reason for the NDP and Ms. May to jump all over this issue with hob-nailed boots in Question Period. I’ve emailed Dewar (my MP) and Mulcair to this effect this afternoon.

    I know which parties I’ll not be voting for in the next election …

  4. Blaze

    @Schubert: It’s easy to place the blame on the current Conservative government. Many of the comments at G and M agree with you.

    However, Mr. Schmidt claims the 5% criteria goes all the way back to 1993. Jean Cretien and the Liberals were elected with a majority then and Mr. Cretien remained as PM for 10 years, followed by Paul Martin’s Liberal minority.

    Stephen Harper’s Conservatives have only been in office since 2006, first with two minorities, followed by the current majority.

    So, if Mr. Schmidt is correct, we can’t blame this 5% rule only on the Cons. The Libs may have done it as well.

    I’m stunned that they would use a 5% standard. Seems to me any legislation passed on that threshold would be likely to succeed.

    I really wonder what that will mean for FATCA. I think it will be very interesting to follow this case and see what happens to Mr. Schmidt. Based on what the judge said, it does not look promising for the government.

  5. schubert

    @ Blaze Is that 5% rule outrageous and sleazy? Yes. Is it surprising from this government? Nope, it’s bred in their bones. Everyone remember this in the next federal election or by-election. That’s the only way to stop these outrages.

    @ Jefferson. Interesting article, but unfortunately at the end the author admits FATCA may still go ahead anyway, or at least the regulations may still come out soon. Let’s hope he’s wrong. But some parts of the US government seem hell-bent on behaving like drunken teenagers on a dark country road driving head-on toward each other with their steering wheels welded in place.


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