FATCA delay to help with FOFA implementation
Australian financial services institutions have received some breathing space with regards to the implementation of the Future of Financial Advice (FOFA) and Stronger Super reforms as the US announces a six-month extension on its regulatory requirements.
The US Internal Revenue Service announced it had delayed the deadlines for a number of Foreign Account Tax Compliance Act (FATCA) requirements for six months until 1 July 2014.
The delay includes what the Financial Services Council (FSC) called "onerous" procedures requiring Australian financial institutions to collect detailed information on their members to determine whether their residency arrangements make them a US taxpayer.
"The delay for compliance gives the industry breathing space while major Australian reforms such as the FOFA and MySuper are
being implemented," said FSC chief executive officer John Brogden.
"The global financial crisis has not only been the catalyst for significant financial reform in Australia, but on an international scale. More than 10 pieces of major legislation are in the pipeline that will affect Australian financial institutions with international interests", Brogden said.
The FSC had been heavily involved in lobbying for an Intergovernmental Agreement with the US on FATCA and would provide any assistance required by Treasury to ensure a timely completion of the agreement, Brogden said.
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