Survey reveals industry unprepared for FATCA

Companies are still 'seriously unprepared' for the FATCA rules which will come into force in January next year, a new survey by Thomson Reuters has revealed.

The survey of 200 risk, compliance, audit, and legal practitioners globally showed half are unsure of the impact FATCA will have on their firms. About 60% said they expect the requirements of the US tax regime to have an effect on their bottom line, but a further 60% said they have not set aside a specific budget for dealing with the costs of implementation. FATCA, or the Foreign Account Tax Compliance Act, is designed to improve tax compliance for financial assets held by US citizens in bank accounts and other vehicles outside the US. However, 8% of those surveyed said FATCA will ...