The FATCA law does not go more revenue

The aim is that the neighboring country will have greater control over information.

Merida, Yucatan. The Tax Compliance Act relating to accounts abroad (FATCA, for its acronym in English) is not a tool to seek to collect more taxes from 65 member countries, said Enrique Hernandez, international tax specialist.

“It is not so much that will raise more taxes, the law is what you want to monitor information, some others say it is to have greater control via international financial issues,” he said.

Under the XCII Annual Convention of the Mexican Institute of Public Accountants, the firm Procopio partner based in San Diego, California, he said Mexico faces a fiscally transparent world in which there is no place to hide, and all that remains is to be in order.

“Using technology known Mexican Treasury in real time the movement of the taxpayers; the sole purpose of the Act is to know what do tax residents (with dual nationality) outside the United States and share information, “he said.

In an interview after his presentation at the “FATCA and its impact on Mexico,” Hernandez admitted that panel our neighboring country soon of international treaties to avoid double taxation- is becoming the world’s largest tax haven.

“We are seeing major capital who are leaving for other countries to the United States. So there is not much resistance from the US system to its implementation, on the contrary, they have driven, “he said.

This is because he said, that the United States is one of the countries that share less information with other economies, plus it has greater economic stability and its currency is the strongest.

With the implementation of the law, Mexico to the United States plans to provide information of all Americans with accounts or investments in Mexican institutions for over $ 50,000.

Mexico, one of the best

The specialist said that Mexico is one of the countries worldwide that is positioned at the forefront in terms of willingness to comply with such agreements, their implementation and their systems.

However, he admitted that Mexican financial institutions have two challenges to meet new FATCA obligations under the Act. The first is to identify customers in the United States; manage and report the information properly.

He said the second challenge is that the Treasury now has more information on the accounts of Mexicans abroad and that is an important tool to control the country.

“The benefit for Mexico is to provide greater transparency, plus it becomes a tool of control and is a weapon to combat money laundering,” he said.

Instead, the United States has a network of information to understand the behavior of citizens and residents, known as the global financial system behaves, that is valuable in many ways.

He admitted that in our country there are large numbers of people who have a lot of money in other cities in the world, especially those with greater resources, big business and multinationals.

So that within five years the exchange of information to prevent erosion of the base will have a major evolution as there will be no way to hide and methods will be different.

“We are in an era of fiscal transparency,” he said. 2017 is the key date, with the implementation of FATCA and the agreement between the OECD and the G20.