Russia Takes Steps to Sign its First FATCA Intergovernmental Agreement with the U.S. – Los Angeles Income Tax Planning and Asset Protection Plan Attorney Bruce Givner

by Bruce Givner on November 8, 2012

Russia’s government is taking steps to sign its first Foreign Account Tax Compliance Act (FATCA) Intergovernmental Agreement with the U.S. In June 2012, Russia’s National Payment Council (NPC) sent a letter to Prime Minister Dmitry Medvedev requesting that he develop a mechanism to comply with FATCA. At a follow-up meeting, the NPC came up with three ways Russia could comply with FATCA:

1. Sign an Intergovernmental Agreement with the U.S., similar to Switzerland and Japan, which allows the country’s banks to enter into separate agreements with the Internal Revenue Service (IRS), as well as provide the IRS account and identification information on U.S. taxpayers.

2. Sign an Intergovernmental Agreement with the U.S that allows the country’s banks to disclose the information to a centralized tax bureau which then submits the information to the IRS. This option has been implemented in France, the U.K., Germany, Italy, Spain and the Netherlands.

3. Sign an Intergovernmental Agreement with the U.S and require Russia’s financial institutions to withhold a 30% tax from any U.S. owned account that refuses to cooperate with the IRS.
To implement any of the three proposals, Russia will need to pass new national laws.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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