Do you or your kids hold American citizenship?

If so there could be a not so nice tax bill waiting for you and them from the American Internal Revenue Service (IRS) under the terms of the Foreign Account Tax Compliance Act.

Expats Call For FATCA Repeal → … ca-repeal/

US demands tax tolerance of foreign financial groups - Gillian Tett → … ab49a.html

Irish citizens should also be alarmed, the Irish government will not be unaware that a substantial amount of Irish citizens money is held abroad because of the lack of trust in the zombie banks here, and will want to get that money back…

Could someone explain how the US government can force foreign institutions to implement this. It is an overhead for the financial institution and I can’t work out how the US has any jurisdiction over banks in Ireland for example?

When I originally heard of this initiative I thought the US were offering some kind of commission for identifying these accounts but this article implies that this is mandatory requirement for all foreign banks now.

If the bank or any closely related company wants to operate in the US or do business with US companies they will have no choice but to comply. That is the way it has works for other measures where the US has sought to impose laws outside its own borders (trade embargoes on Cuba/Iran, anti-bribery legislation and anti-cartel legislation). From memory Siemens ended up paying a huge settlement for an offence that had no bearing on the US except it might have given them advantage over US companies in bidding for foreign contracts. I think Mercedes has been snagged on something like that too.

Siemens paid $800m to the USA to settle when caught paying kickbacks to secure contracts in 3rd countries (not in the US). … al-bribery
Mercedes paid $185m to the USA to settle when caught bribing Russian government officials to secure fleet purchases.
This second one is particularly ridiculous as no self respecting Russian official would be seen dead in a Lincoln or Cadillac so there was no negative impact at all for the US. The only ones who lost out in that tender were BMW and Audi.

Australia and Japan have told them to get lost. I can probably guess what the Irish department of finance are going to do.

Americans must declare assets by end of month - Niamh Hennessy → … 63259.html
Friday, August 05, 2011

plus theres always the chance of a draft to send you off to Iran, Nigeria, Chad, Syria, Venezuela,…

Bertie has been preparing us for this for years… eh, in FACTA, you have to pay taxes to the IRS…

Irish banks’ interpretation of data laws investigated - Vincent Ryan-> … 69611.html