The Swiss Federal Council has decided to bring the Foreign Account Tax Compliance Act (FATCA) Act, together with the ordinance on disclosure obligations, into force on June 30, 2014, to ease Swiss financial institutions’ implementation of the new disclosure rules, reports Tax News.
Costa Rican Minister of Finance Helio Fallas announced a number of new tax measures to be implemented this year and in 2015 to tackle the country’s deficit. Read more
Singapore has reached a tax information-sharing agreement with the United States under a new law meant to combat offshore tax dodging by Americans.
Deputy Economy Minister Yasutoshi Nishimura told Bloomberg that, by April 2015, the Japanese Government will begin to make significant cuts to Japan’s high corporate tax rate. Read more
The US Internal Revenue Service has announced an 18-month grace period before it begins enforcing the Foreign Account Tax Compliance Act against foreign financial institutions (FFIs) that cannot meet FATCA’s requirements. However, the concession is being offered only to banks and other institutions that make ‘good faith’ efforts to follow the reporting and withholding duties imposed by FATCA. The law, enacted in 2010, requires FFIs to identify their American accountholders and report their financial affairs to the IRS, starting on 1 July this year. Those that do not comply, or cannot comply due to the laws of their own jurisdictions, are in theory subject to a 30 per cent withholding tax on all income from US sources. All FFIs that claim compliance with FATCA must also enforce this withholding tax.
Canadian money stashed in 10 offshore tax havens hit $170 billion in 2013. That’s $15 billion more than in 2012, according to Canadians for Tax Fairness using new data from Statistics Canada. The money flowing to tax havens is growing at a faster rate than investment in non-tax haven countries. At least 40 per cent of all Canadian direct foreign investment is held by the finance and insurance industry.
Three offshore tax havens, Barbados, Cayman Islands and Luxembourg hold more than $124 billion of Canadian money compared to $87 billion in 2010. Read more
The Bahamas cabinet has approved in principle a Model 1 agreement with the USA to implement the US Foreign Accounts Tax Compliance Act. The announcement follows a ‘productive round of negotiations’ earlier this month during which the US Treasury Department appears to have conceded that foundations will be exempt from FATCA reporting and withholding taxes. ‘Model 1’ means that Bahamian financial institutions will report the affairs of their American clients to the Bahamas tax authorities, who will periodically forward the information to the US Internal Revenue Service (IRS).
Australia and the United States have today signed an intergovernmental agreement (IGA) to reduce the burden on Australian financial institutions in complying with the United States’ Foreign Account Tax Compliance Act (FATCA).
The U.S. Treasury Department on Wednesday gave foreign financial institutions 10 extra days to register with the U.S. government, under a new law to combat offshore tax dodging by Americans that goes into effect on July 1. Read more
On 31 March 2014, Law of Ukraine “On preventing financial catastrophe and creating grounds for economic growth in Ukraine” No. 1166-VII dated 27 March 2014 (the “Law“) came into effect. Read more