The US is focusing its efforts on tax evasion with an innovative approach of taxing those foreign companies that withhold details of significant US shareholders, writes Michael Lloyd. In the 2009 Tax Extenders package proposed last December in the US, Congressional leaders included a novel legislative approach to dramatically curtail tax evasion by wealthy US investors. The language included in the Extenders Bill draws heavily from an October 2009 bill dubbed the Foreign Account Tax Compliance Act of 2009, or FATCA. The surviving FATCA provisions include a significant withholding tax on foreign financial and non-financial entities that refuse to disclose detailed client account information and the identity of substantial US shareholders.
Article courtesy of FDI Magazine: http://www.fdimagazine.com/.