Anti-FATCA Lobbying Campaign Gathering Momentum
With a Republican Congress, and a Republican (of sorts) in the White house, opponents of FATCA have probably never had a better opportunity to have the controversial law repealed. Indeed, the anti-FATCA lobbying campaign is already beginning to shift up a gear in Washington DC.
For his part, President Trump has been silent on the matter. But observers suggest that his anti-big government, power-to-the-people, “America first” message places him firmly in the anti-FATCA camp. What’s more, we can hardly expect a savvy businessman like Trump to accept a law that has cost billions to implement but will yield relatively small returns.
We can only speculate about FATCA’s future. However, obligations on US citizens to report foreign financial interests do not begin and end with this controversial law; there’s also FBAR, and a multitude of other forms that must be submitted to the IRS bearing information about such items as foreign gifts and inheritances, and interests in foreign trusts, companies, and partnerships, among others. Will they be swept away in the tide of tax reform?
To mainly conservative campaigners, FATCA is redolent of an age when individual privacy matters less and less, and governments feel entitled to pry into the activities of their citizens. Repealing it would therefore represent a major victory for their cause. But peel FATCA away and several layers of reporting requirements will remain.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look