Non-U.S. pension funds and mutual funds were spared the full brunt of new U.S. information-reporting rules on overseas accounts meant to catch Americans who dodge U.S. taxes by keeping their assets offshore.
Chiefly targeting banks, the Foreign Account Tax Compliance Act (FATCA) rules, published by the U.S. Treasury on Thursday, require foreign financial institutions with $50,000 of any American taxpayer's assets to report the holdings to the U.S. Internal Revenue Service.
The Treasury rejected a request by businesses, banks and foreign investment funds to delay a January 2014 start date for big penalties imposed on individuals and financial firms that do not comply with the law.
The businesses must report to the IRS account holders' names, addresses, account balances plus dividends and interest. Companies affected by the new rules may spend more than $100 million each to comply. Financial institutions that refuse to comply will be effectively shut out of U.S. securities
This article is only available in full to Compliance Complete
UK and Europe Australasia North America Middle East Africa Asia Latin America & Caribbean Subscribers who are logged in.
Please log in to see if you can view this content.
