It’s well worth reading some of the more recent posts and articles, to keep an eye on what is happening in the US regarding FATCA – as we’ve learned to our dismay, that what happens down there will ultimately affect what happens up here.
Forbes has published a piece by James George Jatras, in which he says.
“The trouble is, FATCA doesn’t authorize Treasury to make these agreements with foreign governments, nor are IGAs treaties that will be submitted to the Senate for advice and consent.”
Jack Townsend, on his blog ‘Federal Tax Crimes’, posted the letter responding to a US congressman question on whether the IRS/Treasury Dept can legally enter into these agreements with other countries.
And, finally, Allison Christian’s post analyzing the legality:
Although Ms. Christian’s post is speaking to the legality, it’s very readable and should make the signer of that letter, Alastair M. Fitzpayne. hang his head in shame for not undertaking the proper legal research. (That’s the charitable version, others think it was simply an out and out lie).
“Instead of citing non-existent statutory authority that is easily refuted by simple reading, Treasury should own what it is doing outright.”
Every day I am thankful we have such prominent, knowledgeable and well respected people shining the spotlight on FATCA and the IGAs.