Tue, Oct 21, 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

Banner

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. Opalesque Exclusive: What's next for trend followers?[more]

    Bailey McCann, Opalesque New York: New research out from Ibbotson touches on a key debate happening among investors and fund managers, specifically whether long term trend followers can survive in the new

  2. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  3. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  4. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  5. Sparx optimistic about outlook for Japan[more]

    Benedicte Gravrand, Opalesque Geneva: According to SPARX, there are causes to be optimistic about the outlook for the Japanese market and the country's economy in general. Sparx Asset Management is a Tokyo-based asset manager, part of