Switzerland is ready to collaborate with the USA in terms of FATCA

25.06.2012 On the 8th of May 2010, the President of the USA Barack Obama signed a Foreign Account Tax Compliance Act - FATCA, whose idea is to extend the control of the U.S. tax on foreign banks, insurance companies, investment funds, etc. under the pain of "penalty" of taxation of their operations on U.S. financial markets.

Thus, the adopted in the United States FATCA requires all foreign financial institutions to report on the accounts that are opened by U.S. taxpayers, which, in its own way, implies the need for these agreements by financial institutions with the IRS.

In accordance with the requirements of FATCA, interested financial institutions must obtain a permit for a client to inform U.S. authorities about his account. If the client does not agree to such actions, the financial institution may deduct 30% of all incoming receivables to the client, which get from the United States.

Thus, the Swiss government has decided that it would be more beneficial to implement FATCA, than to endanger the reputation of the financial center. And unlike other European countries (Great Britain, Germany, Spain, Italy, France), who will share information through government agencies, Switzerland prefers to communicate directly with IRS thought financial institutions.  

Expert’s opinion

Lenin, Trotsky, Stalin and other comrades of the world revolution in their time dreamed about Socialist States of the World, the victory of the working people throughout the world and the Soviet Union stretched across the continents.

The Soviet Union has dissolved, but the U.S. repeats the mistakes of the past more often. If the tendency of screwing up the nuts will continue and flirting with lumpen - proletariat will be the basis for democracy in the United States the social shock will not take long to wait. Then, and the IRS will be not up to collect taxes to the ocean.

In the meantime, many banks seeing the desire of State Department "to take away and share" earned money of American businessmen have already refused to open accounts for U.S. residents.

Actually it is considered as one of the elements of the legal security of the bank and customers’ depositions.

Bankers from Switzerland, Luxembourg, Liechtenstein, Austria, proudly point during the negotiations: "We are protected from threats from the U.S. - we do not open accounts to U.S. citizens and do not open accounts for U.S. companies. IRS has not even a formal occasion to request us to the bank - because we do not have Americans who are in the range of U.S. interests. "

We recommend to our clients to open accounts at those banks that do not open accounts for U.S. residents.

Just right now – call and find out: does the bank where you have an account receive requests from the U.S. on customers’ operations?

On the basis: www.admin.ch

Yaroslav Lomakin ( Managing Partner of Honest & Bright Company Ltd)