Financial Services Council's FATCA debate goes to Washington

FSC/ATO/taxation/financial-services-council/united-states/australian-financial-services/australian-taxation-office/treasury/chief-executive/

18 July 2012
| By Staff |
image
image
expand image

The Financial Services Council (FSC) has made its case to Congress and Treasury in the US for an intergovernmental agreement to reduce the compliance burden of the Foreign Account Tax Compliance Act (FATCA) regime on Australian superannuation funds.

FSC chief executive John Brogden met with senior officials from US Treasury, the IRS and members of Congress in the United States to work on the final developments of the regime due to come into effect on 1 January 2013.

The FSC released a submission on draft regulations in April calling for an intergovernmental agreement to facilitate the transfer of data from the Australian Taxation Office to the Internal Revenue Service (IRS) and reduce the onus on superannuation funds.

"An intergovernmental agreement has the potential to significantly reduce the FATCA compliance burden that will be faced by the Australian financial services industry and will ensure Australian firms are not placed in the position of having to breach local laws in order to comply with US laws," Brogden said.

The regime requires Australian foreign financial institutions (FFI) including super funds to collect detailed data to determine if a member's financial and residency arrangements make them a US taxpayer.

Failing the provision of information, the super fund is required to withhold 30 per cent tax on US connected payments.

But while the FSC is working closely with industry bodies in Australia and relevant US representatives, the Australian government will need to get involved to push for a resolution before final regulations are drawn up in September.

"It is clear from our discussions with US government officials that a strong public statement is required from the Australian government calling for the commencement of talks to enter into an agreement with the United States," he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND