Wed, Jul 1, 2015
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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  3. Hedge funds panic over Greece[more]

    Komfie Manalo, Opalesque Asia: Some investors are in panic mode as Greek Prime Minister Alexis Tsipras announced Sunday night that the banks and the stock market would be closed Monday, said

  4. Alternative investment industry could grow to $13.6tln in five years[more]

    Komfie Manalo, Opalesque Asia: Leading auditing and advisory group PwC said that the global alternative investment industry, which includes hedge funds, private equity and real assets, is set to increase to $13.6tln within the next five years. "Be

  5. Qbasis gets $200m-plus investment in 'black swan' hedge fund[more]

    From Reuters.com: A hedge fund that more than doubled clients' money during the 2008 financial crisis has attracted more than $200 million from an investor aiming to cash in on fresh ructions in global markets. Qbasis Invest has secured the investment from Britain's Omada Capital, Florian Wagner, wh

 

banner