The United States of America have enforced other countries to agree on a so-called Foreign Account Tax Compliant Act. Basically this US legislation forces foreign countries to comply with United States' interests. A non-compliant country faces consequences. FACTCA basically demands that Uncle Sam receives information with respect to foreign bank accounts held by US citizens. The intention is to prevent tax fraud and evasion by US citizens. FATCA has enormous implications for foreign financial instutions ("FFI's"). Banks and fiduciary institutions, insurance companies and pension and investment fund all fall under the scope of FATCA.
On the one hand all Curacao financial institutions should feel lucky that an agreement on substance under FATCA has been reached. On the other hand it is just another example how Uncle Sam seems to be able to influence local legislation to adapt to their wishes.
Out take on FATCA:
The root of FACTA started with the US changing its approach when the so-called "limitation on benefits" articles were imposed on countries either trying to agree on a tax treaty with the US or the ones that were negotiating a new tax treaty with the US. The Dutch 1948 tax treaty was replaced in 1993 with an extensive limitations on benefits article (26).
Nobody is in favor of tax fraud of tax evasion. On the other hand: a nation should not wield its economic power to influence an other nations' legislation.
On the one hand all Curacao financial institutions should feel lucky that an agreement on substance under FATCA has been reached. On the other hand it is just another example how Uncle Sam seems to be able to influence local legislation to adapt to their wishes.
Out take on FATCA:
The root of FACTA started with the US changing its approach when the so-called "limitation on benefits" articles were imposed on countries either trying to agree on a tax treaty with the US or the ones that were negotiating a new tax treaty with the US. The Dutch 1948 tax treaty was replaced in 1993 with an extensive limitations on benefits article (26).
Nobody is in favor of tax fraud of tax evasion. On the other hand: a nation should not wield its economic power to influence an other nations' legislation.
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