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Republican FATCA protest spreads worldwide on social media
| Published: | 18 Feb at 6 PM |
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Initiated by the Republican party, the protest against the US government’s Foreign Account Tax Compliance Act (FATCA) has spread across the world via a social media protest site.
The controversial tax information-swapping agreement, supported by President Obama, is intended to clamp down on US citizens living abroad as well as resident taxpayers with investments and overseas cash holdings. Foreign financial institutions are being forced under threat to report all details of bank accounts and investments held overseas by US citizens in order that the right amount of tax on capital gains and earning is paid to the IRS.
Many world governments are angry about the law’s intrusion into their internal affairs, and US taxpayers as well as expats are furious about the intrusion on their privacy by the act, which will come into force from 1 July this year. The lobby group Republicans Overseas is urging American expats to add their voices to US residents by downloading an online petition form, signing it and sending it to Washington.
Another bid to derail the act is being undertaken by leading Republican senator Solomon Yue, who initially forced through a Republican Party resolution to repeal the law. Yue has written to the ambassadors of all the countries in the G20 group urging to them to stand against FATCA and explaining why Republicans are against it.
Meanwhile, the Organisation of Economic Co-Operation and Development, (OECD) is moving to crack down on tax avoidance by multinational corporations by stopping the shifting of revenues between low-tax financial jurisdictions. The move will introduce statutory reporting of multinationals’ revenues, and aims to force the payment of corporation tax in the country where profits were earned.
The controversial tax information-swapping agreement, supported by President Obama, is intended to clamp down on US citizens living abroad as well as resident taxpayers with investments and overseas cash holdings. Foreign financial institutions are being forced under threat to report all details of bank accounts and investments held overseas by US citizens in order that the right amount of tax on capital gains and earning is paid to the IRS.
Many world governments are angry about the law’s intrusion into their internal affairs, and US taxpayers as well as expats are furious about the intrusion on their privacy by the act, which will come into force from 1 July this year. The lobby group Republicans Overseas is urging American expats to add their voices to US residents by downloading an online petition form, signing it and sending it to Washington.
Another bid to derail the act is being undertaken by leading Republican senator Solomon Yue, who initially forced through a Republican Party resolution to repeal the law. Yue has written to the ambassadors of all the countries in the G20 group urging to them to stand against FATCA and explaining why Republicans are against it.
Meanwhile, the Organisation of Economic Co-Operation and Development, (OECD) is moving to crack down on tax avoidance by multinational corporations by stopping the shifting of revenues between low-tax financial jurisdictions. The move will introduce statutory reporting of multinationals’ revenues, and aims to force the payment of corporation tax in the country where profits were earned.
Comments » There are 4 comments
Bob In France wrote 10
years ago:
that's great that this brand new group Republican Overseas has joined the many voices against FATCA. Other groups, including AARO, Democrats Abroad, and AAWE have been lobbying Congress and various regulatory agencies for over two years, and all of them will be in DC next week in a concerted effort to get some relief. So the implicit claim that this group which only came into existence a few months ago whereas their party has been completely absent for the last two years is somehow leading the charge on this important policy debate that affects all americans living abroad is a bit extravagant. still, it's great they've decided finally to make some noise.
Allan Madan wrote 10
years ago:
FATCA is ridiculous in the first place. The United States should be adopting a residence-based tax system as opposed to a citizenship based system like 99 percent of the rest of the world. This legislation will only further impede on the national sovereignty of other nations and further fuel American resentment. FATCA has potential implications extending beyond ‘American persons’, this is an extremely expensive compliance program to enforce and customers of these banking institutions will most likely have to bear the weight of this in increase banking fees. Offshore banking is a serious issue, but the American governments need to target the real culprits, increase corporate taxation and those that have complex methods to divert income reporting. There are many Americans in Canada who have no ties other then its their place of birth. Is it really fair to tax them for economic productivity that was not generated in the United States? absolutely medieval thinking from the United States government.
No FATCA wrote 10
years ago:
Democrats oversea are against this lousy law too. This law is so bad and it will destroy American jobs. Who wants to get involve with an American business now ? People in USA needs to understand this lousy law.
Chuck wrote 10
years ago:
I am not even a US citizen nor am I a resident of the US (I have never even been to the USA) and I am also required to report my accounts, even though I do not trade in the USA. I just happen to have a single-member LLC. The USA is turning into a dictator.
