FATCA: THE CHALLENGES OF COMPLYING AND THE HARBINGER OF THE COMMON REPORTING STANDARD
As FATCA’s global implementation ramps up, it has encountered its fair share of ups and downs along the way. For instance, recently, the IRS announced it has had successful exchanges of information while concurrently announcing a year extension to the 30 September 2015 reporting due date, much to the relief of countries with significant global operations and reporting obligations.
Almost simultaneously, the IRS also entered into its first Competent Authority Arrangements (CAAs) with eight countries, a number that is likely to grow throughout the next year. It is worth noting there could be a connection in the timing of the exchanges and the successful execution of these CAAs, but only time will tell as FATCA continues to grow in reach and reporting requirements.
What can be said with certainty is that what happens in the coming year will not only help fill in the blanks on where and how the exchanges are to happen, but also complete the process of executing FATCA on a worldwide scale.
IRS reaches competent authority arrangements with eight countries
On 24 September 2015, the US entered into its first CAAs with Australia and the United Kingdom. Similar agreements were subsequently put in place with the Czech Republic, India, Hungary, Liechtenstein, the Republic of Mauritius and New Zealand. These agreements give effect to the mutual promise laid forth in the Model IGA to establish an agreed upon framework for each nation’s competent authority to exchange information with the other.
Jan-Mar 2016 Issue