Some of the topics addressed were changes the agreement will bring to the financial structure of the border, the ones that clients as well as financial institutions will face in tax matters and general provisions, among others.
FATCA a global initiative
After the opening remarks given by Jodi Waterhouse, Director of San Diego University, Veronica Yepez, speaker from Amicorp Group, introduced FATCA; what it is and in which phase Mexico is currently finds itself in, how it will affect investment and its global effect.
She mentioned that beginning January 1st,2014, Mexico, like other countries, will have to comply with the regulations this new law brings, obliging foreign financial institutions to report the existence, as well as details, of foreign accounts to the United States' Internal Revenue Service (IRS).According to Veronica Yepez FATCA's implementation seeks to ensure that not only can the US identify and implement sanctions, but all taxable entities responsible in each country can access these records to corroborate or include additional information.
This regulation was driven by the Organization for Economic Cooperation and Development (OECD) in response to interest shown by other countries to obtain and improve the exchange of tax information by financial institutions on an international basis, seeking to prevent tax evasion and combat money laundering.
Some of the benefits the law will provide the foreign country's tax authorities include the ability to:
Share tax information between countries and financial institutions.
More efficiently report and submit tax documents, requirements, etc.
Allowed expedited legal processes by summoning the same taxpayer before various jurisdictions.
Facilitate the tax collection from one country to another.
As of now, Yepez explained that the treaty has been signed by several countries. Right now, the focus is on tax collection and will apply to all accounts of Mexican or Americans individuals who have bank accounts in Mexico or the United States generating tax assets while not declaring these to the corresponding country.
In conclusion, he said that implementing this act will require eliminating primitive revenue collection practices as well as the use of "tax havens", because the financial information will now be completely transparent, from now on, customers should invest in professional financial advice services to not fall behind the new regulation.
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