Four bank lobbying groups have requested the US administration to delay the implementation of the anti-tax evasion law FATCA by six months, which is scheduled to come into force on 1 July 2014.
According to Reuters, the American Bankers Association, The Clearing House Association, the Institute of International Bankers and the Securities Industry and Financial Markets Association have signed letter which says, "This is insufficient time to achieve the effective, full implementation of FATCA."
Go deeper with GlobalData
The US regulators have already delayed the implementation of the controversial Foreign Account Tax Compliance Act (FATCA) twice, pushing it back by 18 months.
The bank groups said that the US regulators are yet to provide all the rules needed by banks and financial firms to comply with the FATCA.
Under FATCA, banks will have to identify and report directly to the IRS information about financial accounts, held by US taxpayers with accounts of more than US$50,000.
The FATCA agreement requires foreign financial institutions to disclose information to the Inland Revenue Service (IRS), on all accounts held by US taxpayers, otherwise they will be subjected to a 30% withholding tax.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
