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2014 | 4(21) | 11-22
Article title

The deadweight cost of implementation of the Foreign Account Tax Compliance Act (FATCA)

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EN
Abstracts
EN
From 1 June 2013 FATCA – the new American law on the disclosure of financial information about foreign accounts for tax purposes – came into force. The aim of the Foreign Account Tax Compliance Act is to prevent the tax evasion of US citizens with offshore accounts. The Act requires all foreign financial institutions to identify American people in possession of the financial accounts (banking, brokerage, etc.), and then transmit that information to the tax authorities of the United States. The penalty for failure to comply with this requirement will be a 30% withholding tax on capital flows from the United States. The article presents the main issues connected with FATCA and brings closer the arguments pro and contra. As the Act results in new requirements which non-US financial institutions have to fulfil, the paper looks both at the legislative and cost-related problems. It also analyses how the new provisions will influence Polish financial institutions and their customers.
Year
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Pages
11-22
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References
  • ACA, 2011, Why FATCA is Bad for America and Why it Should be Repealed Now!, ACA Report, July.
  • Article 29 Data Protection Working Party, 2012, A letter to the Director General of Taxation and Customs Union” Brussels, 21.06.2012, Ref. Ares (2012)746461.
  • Browning L., 2012, US enlists 5 EU nations in offshore tax crackdown, Reuters, 8.02.2012.
  • Deloitte, 2011, FATCA (Foreign Account Tax Compliance Act) – The new law introduced in the U.S. shall impact Polish companies and natural persons, receiving US sourced income, Deloitte Poland.
  • Deloitte, 2012, FATCA – polskie instytucje finansowe czekają duże wydatki, Deloitte Press Releases, 12.06.2012.
  • Eckl P., Sambur J., 2012, The Impact of the US Foreign Account Tax Compliance Act (FATCA) on European Entities, European Taxation, IBFD, January.
  • Europe’s big five will help USA enforce FATCA, Stepjournal.org, 9.02.2012 (1.05.2013).
  • Fitch, 2012, Wide Reach of FATCA May Impact Global SF Cashflows, FITCH Ratings – Press Releases, 30.08.2012.
  • KPMG, 2012, Surveying the market: Are you ready for FATCA?, KPMG International, December.
  • PwC, 2013, FATCA Regulatory Timelines, PwC, 12.02.2013.
  • Strzelecki J., 2013, FATCA coraz bliżej, „Gazeta Bankowa”, 1.04.2013.
  • Swiss-American Chamber of Commerce, 2011, Some thoughts on FATCA, Swiss-American Chamber of Commerce, 25.07.2011.
  • Święcicki P., 2013, FATCA grozi wzrostem bankowych kosztów, „Parkiet”, 5.01.2013.
  • The European Commission, 2012, The US Foreign Account Tax Compliance Act (FATCA) – State of Play, European Commission Working Document, Brussels, 6.02.2012.
  • Tyszka S., Bosak K., 2012, FATCA i jej konsekwencje dla polskich instytucji finansowych, Centrum Analiz Fundacji Republikańskiej, September.
  • Uryniuk J., 2013, Bankowcy chcą technologii, ale boją się nowego ryzyka, „Dziennik Gazeta Prawna”, 18.03.2013.
Document Type
Publication order reference
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YADDA identifier
bwmeta1.element.desklight-a2b12faa-4bee-4949-9236-8a27b07a2e61
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