Mon, Sep 15, 2014
A A A
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. Investing - Big hedge funds show interest in Alibaba, Maglan joins other hedge funds in rush to Argentinian assets[more]

    Big hedge funds show interest in Alibaba From Hereisthecity.com: …Three other major hedge fund investors who have shown interest in the IPO are Dan Loeb of Third Point, David Tepper of Appaloosa Management and Dan Benton of Andor Capital Management. All three were among the roughly 800 p

  2. Socially responsible investments provide higher yield[more]

    Komfie Manalo, Opalesque Asia: A study by New Amsterdam Partners showed that asset managers with high ESG (environmental, social and governance) ratings provide higher gains with their portfolios compared to managers with low ESG ratings. In a study entitled

  3. Rothschild sees ‘new monetary world’ and recommends hedges[more]

    From Valuewalk.com: Rothschild Wealth Management is concerned about complacency and somewhat befuddled about the potential for stimulus in the Eurozone given the economic indicators. In their September “Market Perspective” report, Rothschild observed that while the risks in the Ukraine and Syria are

  4. SEC charges Minnesota hedge fund manager with fraud[more]

    Bailey McCann, Opalesque New York: The SEC has brought charges against Minneapolis-based hedge fund manager, Steven R. Markusen for bilking investors out of fees and portfolio pumping. According to the complaint, the management fees earned by Archer Advisors LLC were shrinking due to the funds’ w

  5. …And Finally – Immature[more]

    From Newsoftheweird.com: Princeton University professor John Mulvey, 67 (who teaches financial engineering applications), was charged in July with stealing 21 yard signs around the town of Princeton -- signs for a computer repair business owned by a man with whom he was feuding. Nathan McCoy,