Sat, Nov 28, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Clifford Chance reports on inconsistencies and concerns around FATCA

Tuesday, January 22, 2013

Beverly Chandler, Opalesque London: Clifford Chance has issued a detailed briefing note on the final FATCA Regulations, asking is FATCA now just compliance, or do real risks remain for international financial institutions and transactions?

Clifford Chance writes that while the cost of FATCA has been the principal concern since it was enacted in 2010, there have also been concerns at the two key legal risks FATCA creates. These are the risk that compliance contravenes local law and the risk that FATCA results in unexpected withholding taxes, even on non-US transactions, Clifford Chance writes.

On Thursday 17 January 2013, the United States issued the final FATCA Regulations. The FATCA legislation was conceived to counter tax evasion by US taxpayers. "Foreign financial institutions (FFIs) – such as banks, insurance companies and many funds and capital markets issuers are invited to sign agreements with the IRS to identify, and to disclose details regarding, their US accountholders. An FFI that doesn't sign and is not otherwise exempted faces a punitive 30% withholding tax on all "withholdable payments" derived from US sources. FATCA catches an impressively broad range of payments, including dividends, interest and certain derivative payments. In addition, after 31 December 2016, gross proceeds such as sale proceeds and returns of principal derived from stocks and debt obligations generating US source di......................

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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November