GWM Calls for Expat FATCA Concessions
As Switzerland becomes the latest country to comply with the US Foreign Account Tax Compliance Act (FATCA), Guardian Wealth Management is calling for US expats living abroad to be removed from the FATCA net entirely.
Due to come into force on 1st July 2014, FATCA requires all non-US financial institutions to hand over information on US clients either via national government or direct to the US tax authorities. But, we say, the requirement – originally intended to stop US residents hiding assets offshore – is harming legitimate US expatriates.
Gavin Pluck, Regional Head Europe, says “While FATCA is being introduced to ensure US citizens don’t evade US tax it’s a pretty blunt instrument. It labels everyone as potential tax evaders when the majority of US expats have come abroad for career or family reasons.
“A solution is to remove the need for institutions to report on US clients living or working abroad. This would take away the administrative burden that is seeing an increasing number of non-US financial services firms close their doors on US expats.
“GWM has decided not to shut out its doors on US clients and we are trying to offer guidance and support as well as source solutions that tick all the right boxes in terms of being FATCA compliant.”