US FOREIGN TAX COMPLIANCE ACT

   

Early this year United State Government introduced a harsh Tax law (Foreign Account Tax Compliance Act) or Fatca, as it is known. This law has created chaos among business outside the US, the fear that they will have to spend billions of dollars a year to meet the greatly increased reporting burdens. The new filling demands are daunting and overblown.

Congress came in with a sledgehammer said H. David Rosenbloom, a lawyer in caplin $ Drysdale's Washington office and a former international tax policy adviser for the U.S Treasury department.The Fatca story is really kinda of insane!!

congress created Fatca after the U.S justice Department successful pursuit in 2009 of the Swiss bank UBS, in which UBS- which had encouraged U.S citizens to set up secret offshore accounts-paid $780 million and turned over client details to avoid criminal prosecution. but critics say that it amounts to gross legislative overreach and that the approximately $8billion the Treasury expects to reap in taxes owed over 10 years pales next to the cost it will impose on foreign institutions. This law demands that virtually every financial organization outside the U.S- there are several hundred thousand and any foreign company in which Americans are beneficial owners register with the U.S internal Revenue service,check existing accounts in  search of Americans, and annually declare their compliance. Non compliance is to be punished!
             Do you think that this law treats all Americans with overseas bank accounts as 'CRIMINAL'??