New US tax rule worrying overseas bankers

Calcutta News.Net
Monday 13th June, 2011

Overseas banks have begun a big campaign against sweeping US tax law reforms.

The reforms, that will force overseas institutions to report on the holdings of American clients, were passed by Congress last year.

The Foreign Account Tax Compliance Act comes into force in 2013.

Senior bank executives have recently met with Tim Geithner, the US Treasury secretary, asking for modifications to the law.

Banks have complained that it will cost too much to source records for US citizens and also conflict with domestic privacy laws, especially in places like Switzerland.

Bank officials have suggested the act will put world financial institutions into the clutches of US tax authorities.

Overseas banks have to identify US citizens with accounts of more than $50,000.

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