FATCA - A Report from the Front Lines

4 Pages Posted: 2 Aug 2012 Last revised: 17 Dec 2012

J. Richard (Dick) Harvey

Villanova University School of Law and Graduate Tax Program

Date Written: August 1, 2012

Abstract

In this article, Harvey reports on two recent FATCA debates in Switzerland where he was responsible for explaining the background that led to FATCA and defending the enactment of FATCA. As a result, Harvey was clearly the least popular person in the room. This article summarizes certain issues discussed during the debates, including: (i) whether Swiss sovereignty has been violated; (ii) does FATCA generate enough revenue to justify its existence; (iii) whether Swiss FIs have considered the impact of a multilateral FATCA regime on their business model; and (iv) how to address the extensive termination of US accounts by Swiss financial institutions.

The article also briefly discusses the ultimate need for a multilateral FATCA regime that involves many major countries with one of the key issues being the need to develop globally acceptable customer due diligence procedures. Harvey suggests that tax authorities may want to increase coordination with the anti-money laundering/terrorist financing arms of government. Detailed customer due diligence may be easier to justify if it is being done for both tax and anti-terrorist/money laundering reasons.

Keywords: International taxation, FATCA, Offshore accounts, Foreign Account Tax Compliance Act, anti-money laundering, anti-terrorist financing, and Swiss accounts

Suggested Citation

Harvey, J. Richard (Dick), FATCA - A Report from the Front Lines (August 1, 2012). Tax Notes, p. 713, August 6, 2012; Villanova Law/Public Policy Research Paper No. 2013-3001. Available at SSRN: https://ssrn.com/abstract=2122491

J. Richard Harvey (Contact Author)

Villanova University School of Law and Graduate Tax Program ( email )

299 N. Spring Mill Road
Villanova, PA 19085
United States
610-519-4474 (Phone)

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