Draft Fatca rules show US is going to press on

Friday 10th February 2012, 12:00PM GMT.

Dominic Rigby

DRAFT regulations under Fatca, the US Foreign Account Tax Compliance Act, have finally been published and are likely to raise issues for Guernsey businesses and trusts.

‘The most significant conclusion from the draft regulations is that Fatca is not going away, as some might have hoped,’ said Dominic Rigby, tax director at Ernst & Young.

‘Local businesses with US clients or investments, who may have adopted a wait-and-see approach will now have to act quickly in assessing the impact of Fatca before the regulations are released in the summer.’

Fatca was enacted on 18 March 2010, introducing reporting requirements for foreign financial institutions with respect to certain US accounts, targeting non-compliance by US taxpayers.

It brought with it potentially significant administrative requirements, the cost of which would be far in excess of the tax saved.

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View more: Fatca news, Foreign Account Tax Compliance Act news.

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U.S. after off-shore tax havens

February 13, 2012 at 3:48 am

For a Guernsey born Islander living in the U.S. the U.S. is comming after all the off-shore tax havens where U.S. Citizens hide their money without paying tax on investment income. Fair enough, why should the working class pay more tax then the rich. The average U.S, rich only pay 15% personal income tax.

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- Bert
  
  February 14, 2012 at 7:59 pm
  
  I agree that everybody needs to pay tax to contribute to the tax take to run the State to pay for health, education etc. I must correct you on your use of the term “off shore tax havens” Guernsey one of many offshore jurisdictions is highly regulated and has sufficient tax transparency to be on the OECD white list. The tax rate in Guernsey is 20% so hardly a tax haven when you state that the rich are paying 15% over there.
  
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