Enacting of FATCA delayed for six months

16.07.2013

The U.S. authorities have delayed enacting of FATCA (Foreign Account Tax Compliance Act) for six months. According to the origin plans of authorities, this law was to come into force on 1 January 2014. Recall that the Law on Foreign Account Tax compliance is aimed at preventing tax evasion by U.S. citizens and residents who invest capital in the U.S. through non-US financial institutions and offshore investment vehicles.

Official announcement about delaying the enforcement of FATCA for six months was received on July 12 of 2013 by the U.S. government. The reason for delay is large number of applications for conclusion of an agreement about exchanging of tax information, that is, the introduction of FATCA. The U.S. authorities mentions, that more than 80 jurisdictions shows their interest to FATCA.

Thus, the Foreign Account Tax Compliance Act will come in force at 1of July in 2014.

Based on:

www.treasury.gov

Expert’s opinion

Life becomes more and more complicated for poor Americans. Every their step is under government control. It`s easier to pay taxes and sleep well.

And it is correct and has been repeatedly proven that it’s better to pay at once, than wait for consequences. It is better to pay a little bit and do not draw attention to yourself than worry about each undeclared dollar.

America is a free country, and every schoolboy knows that. In addition, it is a very capitalist country, tracking each step of their citizens and not trusting them. And what is surprising: that on the state level decides such questions as: surveillance, inspection of all accounts in all European banks, and more. So, maybe the economy is in a deep crisis in America right now, or maybe government simply decided to fill budget.

Anyway, the accounts of all Americans who have opened a bank account abroad, will be cross-checked after 2014

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)