Wed, Jul 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Dechert Hong Kong warns of compliance issues for Asian firms as FATCA deadline approaches

Tuesday, June 26, 2012

amb
Karl J. Paulson Egbert
Beverly Chandler, Opalesque London: Reporting from Dechert in Hong Kong, Karl J. Paulson Egbert finds that earlier hopes that the financial services industry in Asia could begin to make sense of FATCA’s obligations when the U.S. Department of the Treasury ("Treasury") and Internal Revenue Service ("IRS") issued proposed regulations relating to the Foreign Account Tax Compliance Act ("FATCA") earlier this year have been dashed, with the FATCA legislation still offering a compliance challenge.

Paulson Egbert writes of comment letters from Asian trade groups from a variety of Asian jurisdictions, including Hong Kong, Singapore, Japan and Australia which reflected the unique obstacles each faced with FATCA compliance, but beyond that, a general unease with FATCA’s scope, as well as skepticism that FATCA’s rewards (an estimated US$1 billion in additional tax revenue annually) justified its expenses.

Paulson Egbert writes: " Generally, FATCA attempts to combat U.S. tax evasion by requiring that non-U.S. financial institutions report the identities of U.S. shareholders or clients — or face a 30% withholding tax on their U.S. source income. But comment letters from higher tax jurisdictions in Asia questioned whether U.S. tax evaders would cheat on their U.S. taxes only to pay local taxes elsewhere".

In addition, comment letters from bot......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  3. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  4. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  5. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag