FATCA

The US Foreign Account Tax Compliance Act. A tax measure which will come into force in stages from 1 January 2013 and which obliges certain foreign financial institutions to enter into an agreement with the US Internal Revenue Service in relation to providing reporting to the US Internal Revenue Service on the financial institutions’ US account holders or suffer a potentially very substantial Withholding Tax on payments of US sourced income and capital from 1 January 2014.

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