We have to love James Jatras, the former US diplomat and Washington lawyer and lobbyist who is spearheading the battle on the US front to Repeal FATCA.
In an interview with iExpats, Rolled Back FATCA Gives Critcs Hope, Mr. Jatras says:
There’s no way anyone can put enough lipstick on this pig to make it kissable.
“The fact is, FATCA is an ill thought-out law that is just begging to be undermined and set up for repeal.”
About the “absurdity” of the British IGA:
“While (US) Treasury is balking at moving forward with regulations on foreign firms theoretically to “recover” US taxes owed, HMRC would be hammering domestic UK firms to the tune of billions of pounds — with absolutely nothing to show for it.
“At the very least, Parliament should hold off on final action (or if they don’t, HMRC should refrain from issuing regulations) until it’s clear whether the ‘Yanks’ will reciprocate – which they won’t.”
It’s hard to tell. An IGA with Canada was ‘imminent’ – eight months ago.
It’s likely a few more countries will sign in the next few months, but it’s hard to predict which ones. Most recent signals from places as diverse as Switzerland and Hong Kong point in the opposite direction, that the IGA process is getting more difficult for Treasury, not easier.
The only way to deal with FATCA is to repeal it. To do that, first we need to bog down its implementation, starting with undermining reciprocity – a task that is largely accomplished.With adequate resources, I have no doubt we could first render FATCA unenforceable and then set it up for repeal, probably as part of a tax reform package in 2014 or 2015. But right now it could tip either way.