What is the FATCA?
The provisions commonly known as the Foreign Account Tax
Compliance Act (FATCA) became law in March 2010.
FATCA targets tax non
compliance by U.S. taxpayers with
FATCA focuses on reporting:
By U.S. taxpayers about certain foreign financial accounts
and offshore assets
By foreign financial institutions about financial accounts held
by U.S. taxpayers or foreign entities in which U.S. taxpayers
hold a substantial ownership interest
The objective of FATCA is the reporting of foreign financial
assets; withholding is the cost of not reporting.