A new standard is rising. In my opinion, the OECD double taxation agreement is already a relic of the past. Tax havens that believe the OECD standard shelters them from further pressures are up to a rude awakening.
Excerpt: In late October, a group of legislators introduced the Foreign Account Tax Compliance Act in both the House and the Senate. The chairmen of the Senate Finance and House Ways and Means committees, Sen. Max Baucus (D-MT) and Rep. Charles Rangel (D-NY), respectively, who wrote the bill, sought to force foreign financial institutions, including trusts and corporations, to provide information about their U.S. account holders. If a foreign bank were to refuse to comply with the new regulations, the government would levy a 30 percent withholding tax on income from U.S. financial assets held by that foreign institution. Neither of the bills has moved out of its respective committee.
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