Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Wednesday, 5 May 17:08 (GMT -05:00)



Business And Politics News

FATCA: USA Becomes World’s Tax Center In 2013


 

Everybody knows that the USA is the financial center of the world while its dollar is the world’s major currency. However, few of us know that the Foreign Account Tax Compliance Act (FATCA) will take effect on January 1st 2013. Since then, any financial organization around the globe (banks, hedge funds, insurance companies etc) that has any financial relations with US companies will have to send an annual report to the Internal Revenue Service (IRS), the U.S. government agency responsible for tax collection and tax law enforcement.
 
According to Eugene Olkhovsky, Masterforex-V Academy’s leading expert from Canada, the first attempt to eliminate the “bank secrecy” was successful. As a result, Swiss banks cannot withhold the data about their clients any more.

 

 

 

 
Foreign Account Tax Compliance Act
 
The Internal Revenue Service’s official website goes:
“The Foreign Account Tax Compliance Act (FATCA) is an important development in U.S. efforts to improve tax compliance involving foreign financial assets and offshore accounts.
 
Under FATCA, U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS. This reporting will be made on Form 8938, which taxpayers attach to their federal income tax return, starting this tax filing season.
 
In addition, FATCA will require foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers, or held by foreign entities in which U.S. taxpayers hold a substantial ownership interest.”
 
Expert Opinion: FATCA. Possible Consequences.
 
According to Masterforex-V Academy, the FATCA divides all the financial institutions in the world into 2 group: those banks that will cooperate with the IRS and those that won’t. Obviously, the news shocked the entire financial world.
 
The FATCA jeopardizes the age-old financial systems in many “offshore” countries around the globe. It is not a secret that such countries as Switzerland, Cyprus , the Cayman Islands, the Isle of Man and many others feed mainly off their banking sectors.
 
For China and some other major economies, it will be humiliating to obey the orders of the USA.  Moreover, the new regulation contradicts the legislation of numerous countries around the globe, including Russia. Yet, no country is probably going to willingly adapt its legislation to the USA’s demands.
 
USA Makes Concessions
 
Shortly after, Washington understood that they had gone beyond the mark with the initial edition of the FATCA. So, the US Department of the Treasury together with the IRS published a document containing preliminary recommendations and explanations (which were sort of amendments).
 
In particular, they extended the initial stage of concessions. Moreover, they slightly changed the procedure of complex expertise and specified the notion of a financial report. There were some other changes, which eventually helped the USA to promote the new law.
 
Possible Consequences
 
Despite overall discontent, the rest of the world hasn’t formed a clear attitude towards the FATCA. On February 8th 2012, numerous European countries (including Italy, Germany, Spain , France and Great Britain) agreed to follow the FATCA. At the same time, other countries keep pondering on whether to join the company.
 
The FATCA issue was on the agenda of the G20 summit in Mexico (Feb 2012) and the BRICS summit in Washington (April 2012). Obviously, there will be no global resistance against the FATCA.
 
While many Americans with businesses abroad are about to deny their US citizenship, many foreign banks in Europe and emerging markets are looking forward to cooperate with those entrepreneurs.
 
According to Masterforex-V Academy, the FATCA may favor the strengthening of the US Dollar against the Euro and other currencies.
 
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of the USD index.

 

 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

SEC Announces $10M Bounty For Whistle Blowers

Publication date: 17 September 12:38 PM

Raygan's Former Advisor Accuses the Fed of a Big Fraud

The former budget advisor under Ronal Raygan's administration, of the founders of the so-called Rayganomics, David Stockman, is a big adversary of the Federal Reserve's policies. He thinks that artificial interest rate cuts coupled with uncontrolled QE (money printing) creates madness in financial markets, thus separating asset evaluation from their intrinsic value of those assets.

Publication date: 23 August 07:32 AM

U.S. Labor Market Disappoints, Economy Slows Down

The employment rate in the United States increased by 167.000 people in July 2020. It's important to mention the fact that the data came in much worse than expected. According to Reuters, this increase was expected to reach 1.5 million people. At the same time, July's figures were much worse than those revealed in June 2020.

Publication date: 06 August 10:06 AM

iPhone as a Payment Terminal: Apple Bought a Startup For That

Apple has recently acquired Mobeewave, a startup specializing in online payments. The price of the deal is 100 million dollars. According to Bloomberg, the company's technology may allow Apple to turn iPhones into mobile payment terminals accepting mobile payments. To be more specific, Mobeewave developed a technology making it possible to make financial transactions between mobile devices through the built-in NFC module.
Publication date: 05 August 09:27 AM

China Makes Blockchain Professions Official

There are 1838 officially recognized professions in China. Now, there list is up by 2 professions - blockchain engineer and blockchain app operator. The Chinese Ministry of Human Resources and Social Security (MOHRSS) has recently confirmed that by updating the list of official professions.
Publication date: 20 July 11:42 AM

South Korea Invests Billions In Blockchain Technologies

By 2025, South Korea is planning to invest over 48 billion dollars in  blockchain. The goal is to digitize all of the industrial sectors of the national economy in this post-pandemic era. According to ZDNet Korea, the president highly rated some of the benefits this process may bring to South Korea.

Publication date: 18 July 09:40 AM

Black Lives Matter - Investors Keep Ignoring Major Riot In US In 50 Years. Why?

Everyone has probably heard of the #BlackLivesMatter riots, which have been going on in the United States for a while. However, international financial markets seem to have been underestimating this event, which happens to be the biggest riots in the USA in 50 years! Why is that?

Publication date: 18 June 07:56 AM

Donald Trump Influences Bitcoin Exchange Rate

Publication date: 05 June 04:42 AM

Only 4 Of All Existing Billionaires Made Their Fortunes With Cryptocurrencies

Forbes has recently published the list of 2095 billionaires from different parts of the world. It turns out that 4 of them owe it to cryptocurrencies. Who they are, the cryptocurrency billionaires?
Publication date: 13 April 11:54 AM

Life After Brexit: EU-UK Talks Are Underway

Publication date: 07 March 09:03 AM