The KPMG member firm in the UK has prepared a report that sets out the key points in the Upper Tribunal’s decision and the next steps for companies that may be affected by this decision.
FATCA proposed regulations
On Wednesday 8 February 2012, the proposed U.S. Foreign Account Tax Compliance Act (FATCA) regulations were released, which introduce reporting requirements for foreign financial institutions with respect to certain financial accounts.
At the same time the proposed regulations were released, France, Germany, Italy, Spain and the United Kingdom released a joint-statement with the United States supporting the underlying goals of FATCA. The joint statement set forth a cooperation framework to address a number of implementation challenges presented by FATCA, intended to reduce costs, simplify practical implementation and address conflicts with data privacy laws, inter alia.
The approach is broadly based on reciprocity with respect to collecting and reporting, on an automatic basis, information to the authorities of the countries entering into the agreement (FATCA partners). Notwithstanding this approach, however, the proposed FATCA regulations do not exempt financial entities in FATCA partners’ jurisdictions from withholding on U.S. source payments beginning 1 January 2014.
To read a February 2012 report prepared by the KPMG member firm in the UK, discussing these matters, as well as final regulations concerning pension plan automatic enrolment; the postponement of business records checks; the continuance of P45 under real time information; salary sacrifice arrangements; and the Enactment of Extra Statutory Concession Order 2012: Weekly Tax Matters (February 10)