Find out three reasons, in relation to Duncan Edwards' commentary on Foreign Account Tax Compliance Act.
We got a tip-off from one of our readers on ABF, and here's what he or she has to say:
Every bank in the world who might receive payment from outside their country will need to register with the IRS to get an identity number with which other banks will be able to determine their FATCA status
Every bank will either have to prevent ANY non national , yes ANY non national, to have a bank account and so be treated by the IRS as a “local” bank or comply with IRS regulations concerning the reporting of customers. Local banks for instance in India, South Africa, Thailand, etc would have to decide whether to deny bank account to residents of their geographical neighbours or comply with the onerous IRS reporting obligations.
Passthrough payment are ill defined. Some interpreations would mean thata PFFI who make payments of wages to staff or dividents to stockholder whos bank is a NPFFI would suffer a witholding on a non US income!
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