No chance of further FATCA delays
Implementation of FATCA on July 1, 2014 is a “dead cert” with next to no chance of any extension following comments by a senior Treasury official.
Treasury International tax counsel Danielle Rolfes confirmed there would be no delay to FATCA’s implementation, adding it was the organisation’s top priority.
FATCA has been mired by delays for several years now. The last postponement in July 2013 came as the Internal Revenue Service (IRS) struggled to sign the Intergovernmental Agreements (IGAs) with multiple jurisdictions in good time. 20 IGAs have been signed with countries including the UK, Cayman Islands Switzerland, Ireland and Germany, while 11 are all but in the bag.
A number of countries have yet to codify FATCA into national law. Burke Baker said that foreign financial institutions (FFIs) operating in such jurisdictions would most likely have to consult with their own national regulators on how to proceed with their FATCA reporting requirements. FFIs operating out of multiple jurisdictions with different IGAs are also in a quagmire.
Failure to comply with FATCA is not an option as this will facilitate a 30% withholding tax on all US-source payments.
Original story on Cooc Connect.