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tonynico

Apr 5, 2011, 7:00 AM

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n another thread tax ramifications were discussed on the Fatca act.
This goes beyond taxing you to sleep in your own home. Under the law The U.S. will withhold 30% of any foreign institutions assets that pass through the U.S. Banks Brokerage houses and insurance co. ETc. Unless they comply to the United Sates and give information relating to foreign persons holding bank accounts, annuities, and stocks etc.
The institutions have several choices.
1 Not to comply
2 to comply causing the institutions great expense in developing software to enable tracking and reporting
3 Don't laugh it is quite possible that these instituions might just say here is your money and show you the door leaving you with no bank to do business with.

So besides being possibly taxed on use of your own home you might wind up with no bank to do your banking with.

I called Switzerland today and spoke with the ACA an group that represents foreigners rights.
They are well aware of what Fatca will do to a lot of citizens living abroad
They were not aware of the issues in Mexico with the Fidecomiso and what Fatca will mean to people who hold these trusts.
I explained what the trust is and what potential problems could arise out of Fatca.

They are meeting in Washington next week with congress people to discuss the ramifications to honest people living overseas.
They said that they will bring our situation up as well.

They asked me if I would post a testamonial on their website I said I would be happy to.
I am giving you the website as well if you care to post yours as well

http://www.aca.ch/joomla/index.php

I am planning on sending a email to all republican congress people as well to explain my point of view.

I urge all who are effected by the Fatca bill to contact the Reps. and explain to them what this bill has the potential to do to people living overseas.

If you keep your head in the sand and figure it will go away it will not. Better to be pro active.

The ink is already dry on the bill. But the congress has the power to say how it is to be enforced. If they are not aware of the poblems then they have no reason to try to fix the bill.

(This post was edited by tonynico on Apr 5, 2011, 7:01 AM)

Reefhound

Apr 5, 2011, 8:25 AM

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Why would they show you the door? In order to show you the door, they would have to be able to identify you in their customer base as relevant to the law. And if they can do that, then the work is done and they could just transmit your info.

chinagringo

Apr 5, 2011, 8:30 AM

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Excuse my ignorance but this is your second reference to contacting the Republicans. If the intent is the bring this matter to the attention of Congress, then wouldn't it be better to contact both parties?
Regards,
Neil
Albuquerque, NM

tonynico

Apr 5, 2011, 8:50 AM

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Hello Neil
To answer your question it was the Dems that had control of both houses that passed the bill.
It could do no harm but I think it will fall on Deaf ears.

As to the other poster.
I am not privy to all the tech insight to make the transfer of info happen. I do not know if software has to be created or not. It all seems easy when you are on the outside looking in but from what I read it will cost plenty to comply.
I have read and had it confirmed by the ACA the organization based in Switzerland, through our conversation today. That there have been problems all over the world with people being asked to leave their banks as well as Expats that have no U.S. address finding hard or impossible to open a U.S. account. If there was no problem they would not be flying to Washington to meet with Congress people.

When Switzerland was targeted last year I was told that people were asked to close there accounts.
You can chose to believe there is no potential problems that is your choice. But again it started with the patriot act where banks were beginning to feel a squeeze and has only gotten worse.
This is not my words this is the ACA. Why don't you send them an email I am sure they will be happy to answer any questions you might have. It is possible nothing will happen with the banks in Mexico but then again it is happening in other places. Like I said being pro active never hurt.
It is totally up to you and others what actiion they take if any.
I choose to express my concerns before the shoe drops. about banking and trusts.

(This post was edited by tonynico on Apr 5, 2011, 9:10 AM)

Reefhound

Apr 5, 2011, 11:27 AM

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Sorry, my post was meant more as a question than a statement. I don't really have a belief or position, it just seems on the surface like it's a simple reporting mechanism like a routine 1099. Given Mexico's deep interest and involvement with safeguards against money laundering, it wouldn't surprise me if they are given little choice but to comply.