US Department of the Treasury Newsletter
http://www.treasury.gov/connect/blog/Pages/Myth-vs-FATCA.aspx
Myth vs. FATCA: The Truth About Treasury’s Effort To Combat Offshore Tax Evasion
By: Robert Stack 9/20/2013 (Robert Stack is the Deputy Assistant Secretary for International Tax Affairs at the U.S. Department of the Treasury.)
Here are the facts on FATCA:
Myth No. 1: Some claim it’s overly costly and burdensome due to complex regulations and difficult to meet reporting requirements.
FACT: Treasury and the IRS have designed our regulations in a way that minimizes administrative burdens and related costs.
Myth No. 2: Some claim that U.S. citizens living overseas will become outcasts in the international financial world.
FACT: FATCA withholding applies to the U.S. investments of FFIs whether or not they have U.S. account holders, so turning away known U.S. account holders will not enable an FFI to avoid FATCA.
Myth No. 2: Some claim that U.S. citizens living overseas will become outcasts in the international financial world.
FACT: FATCA withholding applies to the U.S. investments of FFIs whether or not they have U.S. account holders, so turning away known U.S. account holders will not enable an FFI to avoid FATCA.
Myth No. 4: Some claim that countries are opposed to FATCA, in part because the legislation could force foreign banks to violate laws in their own countries.
FACT: Treasury’s decision to implement FATCA through IGAs that are respectful of the individual laws and customs of partner jurisdictions has contributed to the significant international interest in participating in FATCA compliance efforts.
Myth No. 5: Some claim that FATCA will generate a backlash from foreign governments who view this as an overreach of U.S. law.
FACT: FATCA has received considerable international support because most foreign governments recognize how effective FATCA, and in particular our intergovernmental approach, will be in detecting and combatting tax evaders.
Myth No. 6: Some claim that FATCA will unfairly expose FFIs to heavy penalties before they have the necessary mechanisms in place to comply.
FACT: We recently announced a six-month extension to our withholding and account due diligence requirements because we recognize that FFIs need sufficient time to register for, understand, and implement their due diligence and reporting processes.
Myth No. 7: Some claim that FATCA aims to use foreign banks as an extension of the IRS.
FACT: Individuals making this claim have confused reporting responsibilities with actual enforcement. The objective of FATCA is the reporting of foreign financial accounts held by U.S. persons or certain entities with U.S. owners.
FATCA is a pain in the butt. And it does make it more difficult for U.S. citizens to bank overseas. The producers are being penalized so the money stays home to support the looters and moochers.
In an August, 2011 online debate with James Altucher, Stansberry predicted that Europe’s debt crisis would intensify in the coming year, with Italy’s Unicredit being “the next big domino to fall.” Stansberry predicted that once Unicredit fell, Germany would not bail it out, and that Germany would leave the European Union within the next twelve months (by August, 2012). Additionally, Stansberry predicted that the U.S. Dollar would lose its reserve status and the U.S Treasury “bubble” would burst. In light of these oncoming financial calamities, Stansberry recommended that investors convert their assets to 50% gold and 50% cash, if they were not willing (or able) to actively short stocks
The trouble with this government apologetic is that it relies on projections and models, not “actuals”. That is, Americans overseas are already being shut out of financial institutions *en masse*, but this is not a projected occurrence, so does not figure into their calculations.
“Our tables do not reflect this as reality, so the reality is false.” Using the same logic that the Earth’s temperature is now 10 degrees warmer than it was 10 years ago, because that is what the IPCC models predicted.
“Who are you going to believe: me, or your own lying eyes?”
So if this is put out by the Treasury, I would swap the Fact with Myth, and the Myth with Fact.