Some real progress at last in negotiations with the US authorities
The US enacted the Foreign Account Tax Compliance Act (FATCA) in May 2010. It created enormous concern among overseas financial institutions which felt that they would be caught up in an extremely burdensome exercise as part of a process to make sure that US residents paid, or suffered, tax on income from their overseas investments.
Banks and financial institutions have been very concerned about this and there have been endless meetings with the US authorities to try and reach some sensible position which would address the issues that are concerning the US without imposing unreasonable burdens on financial institutions around the world.
On 8 February 2012 the US Treasury Department issued a Press Release which indicated that a practical compromise is on the cards with the five major economies in the European Union: the UK, Germany, France, Italy and Spain.
A Joint Statement was published by these governments and the US.
The Press Release announcing this agreement plus the publication of more detailed regulations is available by clicking here.