FATCA has created a world-wide focus on setting standards for tax information sharing between foreign countries and the financial institutions within different jurisdictions.
The worldwide effects of the Foreign Accounts Tax Compliance Act (FATCA) are continuing to manifest as countries, jurisdictions, and foreign financial institutions are deciding how to respond to the United States’ new tax law. However, one thing is for sure, financial transparency is something of the future and is most likely here to stay. Even though some jurisdictions are still apprehensive about making a formal agreement with the United States, global discussions have continued regarding new standards for sharing financial and tax information between countries and foreign jurisdictions.
Transparency as a New Standard
While the United States government has stated that it will continue to work with financial institutions that missed the year-end deadline for signing an agreement with the IRS, there are still many jurisdictions who are deciding where they stand in regards to the new law and how they will proceed as other standardized tax information sharing standards continue to gain favor with other countries and global organizations.
“It is important to understand this standard of financial transparency is not going to fade away,” shares Jeffery Freeman, J.D., LL.M.. “Our goal is to help clients ensure they are compliant with ongoing tax law updates and procedural changes to avoid potential penalties.”
Advocating for a Global Model
The Organization for Economic Cooperation and Development (OECD) has continued to support standardization processes among countries. The group is advocating for creating a single global standard for exchanging financial information between jurisdictions for tax purposes. The idea is that a standard process will help reduce costs for foreign financial institutions and streamline the information gathering process. As of now, banks, investment groups, employers, and other financial institutions must spend extra time, money, and resources to put processes in place for gathering, protecting, and transmitting information for tax purposes. Requirements, processes, and deadlines currently vary from country to country making it difficult and expensive to remain in compliance with laws like FATCA.
The OECD council has already adopted a declaration on the automatic exchange of information in tax matters and is moving towards finding effective strategies for creating and implementing such a standard. Other countries around the world have already show support and interest in furthering these efforts.
It is important to understand the tax law compliance requirements specific to your country and jurisdiction. The best way to ensure compliance is to consult a professional tax attorney or tax law firm. A tax attorney will identify reporting needs and can represent clients before the IRS.
About Freeman Tax Law
Freeman Tax Law (FTL) is a boutique law firm consisting of a multi-disciplinary team of tax professionals including tax attorneys, CPAs and a professional staff that have vast experience with foreign tax compliance and regulatory matters for financial institutions. FTL consults with both FFIs and USFIs with regard to Foreign Account Tax Compliance Act (FATCA) and related regulatory matters and assists them developing procedures on how to comply with these laws. FTL provides a multidisciplinary approach for filing offshore voluntary disclosures. Working to help clients prevent future tax headaches we offer a complete wealth management and estate planning team. As an experienced firm with wide reach, Freeman Tax Law provides immediate assistance to our clients planning for and resolving all tax related challenges.
Freeman Tax Law