FATCA sneaked onto the statute book on 2010 after being tacked on to President Obama’s economic stimulus legislation, the HIRE Act. It is intended to ensure that all US citizens with interests in overseas bank accounts comply with US tax laws. That is a very simple overview of the law, though. To fully understand it (or, more likely, to be fully baffled by it), one would need to wade through hundreds of pages of legislation, regulations, guidance, inter-governmental agreements and advisory notices issued by the Internal Revenue Service. Alternatively, for a more rewarding experience, you could try wading through treacle instead.
The US Government is on something of a mission to reduce the administrative burden posed by FATCA on taxpayers and financial institutions – and probably itself. In December 2018, it announced proposed regulations intended to reduce the burden on taxpayers … Read More »
France’s digital tax is going full steam ahead after Le Maire officially unveiled legislation for a three percent revenue tax, along similar lines to that proposed by the European Commission last year. But you’ll need a time machine to actually get on board, as the timetable says it starts on January 1, 2019. Meanwhile, Spain’s digital tax appears to be grinding to a halt due to problems with the legislative machinery. Parliament’s rejection of the 2019 Budget and the calling of fresh elections, to be held in May 2019, may even derail it.
I think Italy’s digital tax remains on track, but until the Government fleshes out the proposals, we only have a vague idea where it’s going and when it will get there. The UK at least signaled well ahead of time that its digital tax will commence in 2020, … Read More »
The Swiss Government has invested a lot of energy and political capital into its efforts to make the Swiss corporate tax regime more internationally acceptable at the same time as appealing. But unlike the vast majority of other countries – perhaps unlike all other countries – on this matter it is answerable not only to parliament, but to the people.
Given recent events, referendums tend to mean one thing for governments, and that’s trouble. The less said about Brexit the better. But Switzerland has had a rather unhappy experience with referendums in the not-so-distant past too. The Government’s previous corporate tax reform legislation, CTR III, was shot down at the last hurdle in a referendum, and the recent news that the reforms proposed as a replacement to CTR III will also be subjected to a public vote couldn’t have filled the Government with … Read More »