FATCA-DATCA-GATCA and IRS Form Crimes

I have phrased these terms in 2012 after realizing its global impact and consequences on every US taxpayer worldwide.
The rage at UBS in the States led directly to what I call the FATCA FATWA with it's Offshore Jihad and many iterations of the OVDI/P.
More ominously, and mostly ignored in the US media, FATCA has begat a global GATCA, or this OECD Common Reporting Standards (CRS) that David Jolly so benignly mentions in one sentence.
It is modeled on FATCA, although in many ways more restrictive. It is residency based and not Citizenship based, and doesn't have the coercive sanctions that FATCA has. It is a voluntary program, unlike FATCA, where FFIs really have little choice but to comply if they want to use the USD for international transactions, and they ALL do. GATCA IS A BIG DEAL! I have not seen it covered in any U.S. mainstream media, yet. It deserves more attention than the meager lines that David Jolly wrote.
For those that don't know what it is, here is some analysis :
http://bit.ly/1key1tO


FATCA evolving into global GATCA has taken the dragnet approach to stopping tax evasion to a new level, and way beyond the wild dreams of its creators who wanted, as Max Baucus said of U.S. taxpayers, to "stop tax dodging once and for all"
http://bit.ly/V6Aee7
Really, Once and for All?
Is GATCA the best way to accomplish the mission at a global level? What are the consequences that will naturally arise when millions (billions) of people begin to make individual decisions related to this dragnet reality.
A stream confronting a rock finds a way to flow around it, and I am not sure, given the nature of man, you can ever pile up enough regulatory rocks to create a dam to control all flows, (once and for all) without a lot of upstream consequences.
Looking back, it might never have happened if not for the stupidity (criminality) of UBS (combined with the evasion demand from rich U.S. taxpayers) exposed by a whistle-blower. This happened right at the time a new idealistic Administration was coming to power with all its plans for 'Fair share spreading the wealth' taxation approach, whatever that means, and made promises to go after offshore tax evasion.
True to his promise, Obama launched his jihad as a 'Simple Premise' of some type of 1099 foreign reporting which has evolved into global programs of enormous complexity with many unknown consequences.
It is creating an IRS 'formageddon' (Form Crimes) with what is being required of FFIs around the world to fill out U.S. concentric forms to "cure' (regulatory term) the disease of U.S. indicia of their customers.
http://bit.ly/1pfWyO6
I don't think most observers know the magnitude of changes in customer outreach, due diligence and financial review that is going to be required. It is called CDD in the trade as explained by Haydon Perryman in his 4th GATCA podcast. (see earlier post) The levels of intrusive customer questioning, form filing and tax supervision by FFIs is going to be stunning.   FATCA is definitely deputizing them to be an enforcing arm of the IRS.
http://bit.ly/1qDw4Kj
But frankly, this detail is all too boring for the average person to get their brains around and so is left to the legions of financial compliance elites to spread the word of the requirements.
Just as a reminder of where we are today, with FATCA in place, and GATCA coming, it is good to look back to where it all started.
http://bit.ly/1nYkvcv

UBS was the opportunity to not let a good scandal or crisis go to waste, and FATCA was born, buried in stealth, inside the Hire Act without one Finance committee meeting, discussion, debate or cost vs benefit analysis.
This was a political and ideologue mission, so none required.
A global sanctions program was created, without any knowledge of the citizenry, or even the majority of the Congressman that voted for it. A stunning development, in retrospect.
It, combined with many other new financial regulations arsing out of the financial crisis, and other anti terrorist money laundering initiatives that arose out of 9/11 is creating a world where most global financial activity is becoming more and more restricted with a level of regulation complexity and cost that would heretofore be unacceptable.
In case you haven't been aware, there has been a global financial war raging for some time. It is under the direction and control of the U.S. Treasury, and I don't think many have recognized the full impacts of this mission to use US financial or SWIFT domination to get the world to bend to America's will.
You really should read, Treasuries War. http://amzn.to/1t4aZZm
All of this has consequences and collateral damage, but you have to assemble the pieces to see the whole. Here is one. Look at what is happening with poor immigrants in America from this recent New York Times Dealb%K article...
http://nyti.ms/1qu2fXT
Now, alarmingly, but without much media attention, FATCA (just another facet of the broader financial war) has evolved into a global GATCA which assures that all personal privacy is lost in the total surveillance world that America is creating.
That loss aside, you have to wonder, how many more pages of regulations will be heaped onto the pile created since 2008, before we totally choke off most small to medium financial firms and leave only the TBTF financial institutions with their implied government guarantees that come at tax payer expense? How can the small competition to the Big Guys keep up with the compliance demands of governments? Look at these graphics, in the Avalanche of Regulations.   I would NOT want to be a compliance officer at my local bank.
Then, still to come, is this question. When will FATCA blow back onto America shores in a form of a domestic DATCA, so the US can sign up to GATCA in September in Cairns, Australia at the G19( G20-Russia) summit?
What impact will all those 100s of pages of new DATCA/GATCA regulations, and complex reciprocity reporting requirements have when added onto the USFIs regulatory and compliance plate as shown in the graphic above? DATCA would place onto the homeland financial institutions the same onerous FATCA regulations we require of the world so as to meet the reciprocity promises that Treasury has made to entice countries into signing inter-government agreements or IGAs.
To do anything less is hypocrisy of the first order. It is well noted around the world how the USA protects its own tax haven status.
http://bit.ly/1cbQNYe
Will FATCA come GATCA result in a domestic DATCA, or will the USA end up being the last Tax Haven standing when it refuses to go along? Was that by design or accident? (I don't think Congress as currently constructed, will knowingly go along with GATCA or DATCA but I could be wrong.)
Time will tell what unintended consequences or financial collateral damage will be from the criminal actions of UBS and the resulting prosecution, but FATCA / GATCA have certainly been the direct result.
Not sure when DATCA will happen, but if it doesn't, it won't be for for lack of effort by this administration. DATCA is buried in the Obama FY15 budget on page 203.
http://1.usa.gov/OY69ff