FATCA just makes life difficult for US expats
FATCA just hasn’t been thought through properly by the US Government.
Really I’d love to know what it achieves apart from expense to Worldwide banks (who can’t afford it) and aggravation to US expats. If anyone knows the pupose please leave a comment below.
The US government says its to stop expats hiding money and not paying tax on it. Who believes them, I don’t
There are a number of issues here, firstly should US citizens abroad have to pay tax anyway. No other country taxes its citizens in this way.
Secondly, why should banks pay billions to set up a system to help the US Government.
Thirdly, FATCA isn’t going to be effective anyway. Countries like China and Taiwan will refuse FATCA.
Fourly, there are ways to reduce the tax anyway in most countries. Switzerland this week agreed FATCA but gave exemptions to pensions. At deVere Group we can advise on reducing the tax in a correct manner.
So who loses, well as I see it, the only people who lose are genuine US citizens who maybe don’t want to return to the US. Banks lose as they are hit by costs. US expats lose as they are refused bank accounts and mortgages by banks who can’t cope with or don’t want to cope with FATCA.
What positive does FATCA achieve? I really have no idea maybe someone can tell me!
Nigel Green deVere Group
Blog wriiten 17th of February