FATCA is the tool to enforce U.S.
citizenship-based "place
of birth taxation". Therefore, a separate goal is to bring an end to
"place of birth" taxation. Think of how unfair it is to levy taxes on
people based on their "place of birth" (and this is going on the 21st
century).
FATCA will, in the end, draw much attention to the fact that the U.S. itself isn’t particularly compliant with the wishes of other countries searching for hidden assets. For instance, overseas companies such as Taiwan’s Acer or France’s Alcatel-Lucent have flocked to the U.S. and taken refuge in Wyoming or Texas (both of which boast across-the-board low tax rates and a zero-percent corporate income tax). Perhaps, then, the U.S. should start rewarding those who keep their money within borders, instead of trying to beat-up those who didn’t.”
Presently the U.S. has no reciprocity on FATCA and is the only OECD member of the entire 34 not to have committed or signed up to the CRS.
FATCA will, in the end, draw much attention to the fact that the U.S. itself isn’t particularly compliant with the wishes of other countries searching for hidden assets. For instance, overseas companies such as Taiwan’s Acer or France’s Alcatel-Lucent have flocked to the U.S. and taken refuge in Wyoming or Texas (both of which boast across-the-board low tax rates and a zero-percent corporate income tax). Perhaps, then, the U.S. should start rewarding those who keep their money within borders, instead of trying to beat-up those who didn’t.”
Presently the U.S. has no reciprocity on FATCA and is the only OECD member of the entire 34 not to have committed or signed up to the CRS.
This means that the U.S. is the biggest secrecy jurisdiction in the world and remains so, whilst weakening all the others.This means the hot money will go to the US. Given
that there is no way they’ll get even close to the $8.9B they say they
estimated, the only “benefit” of FATCA is that money flows to the US.
Also, nothing has changed. For financial secrecy, in general put you
money in the US. For secrecy of beneficial ownership go to the Caymen
Islands. For corporate secrecy keep ownership at less than 25% in an
Inter Governmental Agreement country. It’s shocking, world wide misery on a worldwide scale with nothing positive achieved.
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