PRLog - Dec. 3, 2012 - (Sunnyvale, CA)- United Kingdom is planning to crack down on offshore tax havens by imposing its own version of Foreign Account Tax Compliance Act (FATCA). The proposal will not only force tax havens to reveal the identity of individuals behind concealed business entities, account holders and trusts, but also deal severely with those who try to hide money abroad. This move is a serious blow to those who avoid tax through UK’s tax havens.
The UK is likely to enforce FATCA on its crown dependencies - Jersey, Guernsey and the Isle of Man and its overseas territories - the Cayman Islands. Upon adoption of FATCA, foreign banks will be required to disclose UK account holders’ full information to the concerned tax authorities.
The UK plans to give the tax havens an ultimatum to provide the data they are providing to the US, otherwise it will not pass their laws that allow data flow to the US. The UK’s refusal to pass such laws may close operations of the tax havens.
As per a draft agreement, FATCA will impose automatic exchange of information for every reportable account of each reporting financial institution. Complete details will have to be provided which include details of all beneficial owners, the account number, name and identifying number of the reporting financial institution and the account balance at the end of the calendar year or if the account was closed during such year, the account balance immediately before closure.
The proposal which is expected to be announced this autumn may take effect on January 1, 2014.
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