Wealth management firms are making final preparations for the introduction of US tax regime FATCA as the 5 May registration deadline approaches.
Thousands of ‘accidental Americans' could be unwittingly caught by the Foreign Accounting and Tax Compliance Act (FATCA) from July, leaving them exposed to US tax liabilities, Vestra Wealth has warned.
The US authorities have released their final set of rules on the FATCA regime designed to prevent tax evasion among US citizens with assets in offshore accounts.
HMRC has released further guidance on the UK's plans to implement the FATCA tax regime, which begins next year.
The US government has postponed the start date of incoming tax regime FATCA to give businesses more time to comply with the rules.
Offshore tax havens Guernsey, Jersey and the Isle of Man are working towards an agreement with the US government on FATCA, the incoming regime to prevent tax evasion.
US-based tax lawyer Douglas Stransky considers the impact of FATCA, the onerous US tax regime which is already turning Americans into 'financial pariahs' overseas.
Fewer financial institutions will be able to dodge the incoming FATCA rules, according to the latest agreement on the US tax regime.