Lucy Lee, Irene Steiner FATCA Article Published by New York Law Journal
“FATCA in a Nutshell for Foreign Trusts, Trustees and Beneficiaries,” an article by Akin Gump private client services practice head Irene Steiner and tax partner Lucy Lee, has been published by New York Law Journal.
The article discusses the fact that U.S. citizens and permanent residents are subject to taxation on income earned worldwide as well as on ownership of certain foreign assets and foreign trusts. The authors note the use of offshore tax shelters to avoid U.S. taxation and discuss one of the IRS’ tools for tax enforcement, the Foreign Account Tax Compliance Act (FATCA).
They introduce their overview of FATCA’s relevance to foreign trusts, trustees and beneficiaries by stating, “FATCA has revolutionized the concept of tax enforcement and disclosure of information regarding accounts held by U.S. persons abroad. Its reach is truly colossal as it impacts all entities outside of the United States, whether or not the entity in question has any connections to the United States.” Among the points they cover in the article are FATCA’s purpose, its structure and what constitutes a “trust.”
The authors conclude that “FATCA has effectively revolutionized concepts of information exchange and bank secrecy with rippling effects around the world. Because of FATCA, countries are rallying together to erode traditional concepts of bank secrecy and promote increased transparency among nations regarding financial data…[T]he true power of FATCA may be the transformation of tax enforcement efforts around the world and the global impact on how banks and financial institutions conduct their businesses around the world.”
To read the full article, please click here.