Tag Archives: Matonis

FATCA Is Far From A Done Deal

This is music to our ears.  At least, the headline is.
American Banker is reporting FATCA Is Far From A Done Deal.
Author Jon Matonis says:

It is either the reciprocity angle or the cascade effect of China’s reluctance that has the greatest potential to derail FATCA.

He also points out:

U.S. is one of the worst offenders globally when it comes to tax havens and “secrecy jurisdictions.”

One point makes me wonder if Mr. Matonis has the total picture:

With global transparency on the increase and more countries considering taxation on citizens’ worldwide income as a way to combat growing budget deficits, reciprocity with U.S. financial institutions starts to look appealing.

The concern about that statement is most countries do tax their residents on world-wide income.  They just don’t stalk their citizens living elsewhere for money.
Does this statement mean the author does not understand that or does it mean other countries are about to become copycats?  I can just see it when Russia, China, Cuba, Kenya and Saudi Arabia begin to demand reciprocity on people who immigrated to US and became citizens and now the US must report back to those countries on the financial affairs of American citizens and the children of those citizens who were born in U.S.
Mr. Matonis concludes:

Although experts in the FATCA preparation business tend to agree that moving forward with expensive FATCA compliance plans is the prudent and logical step to be taking now, a comprehensive and worldwide FATCA roll-out is far from a foregone conclusion. For those financial institutions and their shareholders offended by the overreaching legislation and lack of respect for mutual sovereignty, the cost savings alone may start to make FATCA’s non-compliance penalties look tolerable.

Of course, that is more more money into the coffers of International Robbery Society of United States of Arrogance..