FATCA – correlation of the global economy with the US economy

Already from December 1, 2015 come into force provisions requiring all financial institutions calling their clients to make statements about their residence tax (FATCA – Foreign Account Tax Compliance Act). It is the first significant action since records to OPF.

FATCA imposes on foreign institutions, including the Polish reporting obligations regarding investments owned by US tax residents. If the account holder in Poland, including fund investment, fails to submit a declaration of residence within the prescribed period, financial institutions will be obliged to block the bill, which temporarily prevent the disposition and use of all property values collected on the account and will continue until the time of filing the declaration of tax residence. Upon submission, after locking the account, the account will be unlocked and also reported in the case show the US tax residence. The first period of reporting to the Ministry of Finance, which then transmit these data to the US, falls on June 30, 2016. Initially, they surveyed customers from the transitional period (1 July 2014 – 30 November 2015), and since December, each new customer is obliged to to disclose the country of tax residence. – Based on the statements filed by investors, individual records in the funds will be reported according to the information on the tax residence of the owner. If he proves a US residence, the registry is the reported to the Polish government, which will then forward this information to the competent authority of the United States. If not, the bill will not be subject to reporting – says dr. Marcin Dyl, President of the Chamber of Fund and Asset Management (iZFiA) The purpose of FATCA is to oblige financial institutions worldwide (FFI) to transfer to the US stock data accounts earned income and their owners, who are taxpayers of this country, for the purposes of verifying the correctness of commitments tax. FATCA’s intention was to prevent use by financial institutions of American taxpayers to hide income or the creation of structures for aggressive tax planning. – Chamber of Fund and Asset Management worked on the preparation of proper communication to customers and at the development of the market standard of conduct associated with FATCA. The aim of the activities was to unify communications and communications with participants mainly investment funds. IZiFA prepared and made available broadly understood market patterns documents concerning the obligation to implement into Polish law regulations FATCA – the CEO added Dyl. Prepared models are standard environmental, and are recommended by iZFiA for use by investment fund companies and other financial institutions, in the process of collecting customer testimonials about their tax residence for the purposes of FATCA regulations. They provide compatibility of its solutions with the requirements of the relevant regulations to the extent necessary. Financial institutions may, for various reasons, create other, more complex and advanced solutions, which recommended by the Chamber study provides a starting point. – Such a possibility does not alter the assessment that the scope of the information collected should be the least disruptive to customers, in connection with the recommendations contained in the patterns applied uniformly by market participants represent an important value enhancing its transparency. Ready patterns of communication with customers is to download from the Internet Federations – says President iZFiA. It should be noted that detailed arrangements regarding the scope of reporting of data by financial institutions located in the Agreement between the Government of the Polish Republic and the Government of the United States on improving the fulfillment of international tax obligations and implementing FATCA legislation. Because of the exceptional importance of the professional and the relationship between financial institutions and their customers, the solutions adopted by the financial community in Poland ensure the confidentiality and security of information obtained during inspections. Chamber of Fund and Asset Management