Continuing from last Saturday March 8th …

Well known tax author and journalist Denis Kleinfeld suggests the following answer to this question.

The Congressional Research Service (CRS) provided a Memorandum of July 23, 2001 referencing an inquiry made by the House Majority Leader as to the method used by attorney Jack Blum to construct the estimate of $70 billion of illegal tax evasion losses due to tax havens. This figure was contained in Jack Blum’s Affidavit submitted in support of the government’s request from the federal court for a John Doe summons for records from MasterCard and American Express.

Dennis Kleinfeld states that, according to the CRS:*

Mr. Blum’s estimate was contained in a declaration filed in connection with a petition the Internal Revenue Service filed with the U.S. District Court for the Southern District. In response to your request, we contacted Mr. Blum and discussed his estimate; he was not able to send us a written discussion of his estimating procedure … We did not discuss these particular aspects of the estimating process in our initial conversation with Mr. Blum and our attempts to contact Mr. Blum on a follow-up basis have not been successful.

Mr. Kleinfeld reports that Mr. Blum has been described as follows:

“Mr. Blum is under contract to the IRS, he testifies before Senate committees and has provided an affidavit in support of at least one IRS search warrant.”[1]  This same statement of $70 billion was given by Jack Blum in testimony in 2002. When asked about that number he admitted it was imprecise stating, “You just have to take a guess at it.”

The Senate Permanent Subcommittee on Investigations issued a report entitled “Tax Haven Banks and U.S. Tax Compliance.” This report examined how tax haven banks facilitate tax evasion by U.S. clients that cost U.S. taxpayers an estimated $100 billion each year. This Report, widely cited as authority for the claim that $100 billion is lost in taxes because of evasion of tax through tax havens, is, in fact, merely based on footnote 1 of the Report which cites to information unsubstantiated in five magazine articles that varied widely in terms of authors and opinions regarding the amount of tax losses the U.S. incurs.[2] Mr. Kleinfeld notes that none of the cited articles provide any empirical evidence or known statistical methodology on how the number was calculated. The Report makes no claim that the $100 billion tax loss is based on anything else than these published articles.

IRS Commissioner Charles Shulman, in testifying before the Permanent Subcommittee on Investigations on March 4, 2009, was questioned on the analysis of hidden money criminally held overseas:[3]

Senator McCaskell: “Has there been any analysis done of how much of this money that is being hidden overseas is, in fact, a result of criminal activity?”

Mr. Shulman: “Not that I am aware of. I mean, estimating how much money that is overseas and not being paid to the government. As far as I am aware, there is no credible estimate because it is kind of a chicken and egg. It is over there and we have not found it, it is hard to estimate what is there. And all estimates that I have seen have not broken down criminal versus civil because, again, until we see the cases, it is hard to say.”

Based on a rate of the 15% long terms capital gain that applies to that money over the past 7 look-back years of Statute of Limitation, the currently cited $150B of lost annual tax revenue would require $1 trillion of annual taxable (hidden) income. To generate $1 trillion of capital gains income at a 5% rate of return requires $20 trillion of “noncompliant” offshore dollars.  Is it likely that noncompliant money represents almost double the M2 money supply (Federal Reserve data of March 6, 2014 about $11T, see http://www.federalreserve.gov/releases/h6/current/) and about 20 times the actual amount of paper dollars that are in circulation?

How Much Did the Congressional Joint Committee on Tax Estimate FATCA Will Bring in Annually?

The Congressional Joint Committee on Tax estimated that FATCA will generate $8.7 billion over ten years or average revenue $870 million per year – a very far cry from $100 billion, much less $150 billion, annually.  The $870 million annually appears not too far out of line with the tax collections generated by the OVDI the past six years, albeit the compliance costs to global industry to prepare for FATCA is currently estimated near this same amount based on government reports from the UK, Canada, Spain among other trade partners of the US.  So for the moment, at least offset for compliance costs, it’s probably a wash out.

An interesting study would be to quantify the total amount of funds from Americans repatriating back to the USA because of FATCA and the amount that expatriates to other jurisdictions.  By example, according to the Texas Bankers Association, to date FATCA has resulted in an outflow of $500 million of deposits from the Texas banking system.4 The Florida Bankers Association reported to Fitch that $60 billion and $100 billion in foreign deposits are held in Florida banks, close to 20% of the state’s total deposits.5  In 2012, Fitch estimated that a substantial portion of these deposits would NOT expatriate from Florida.  

Will the US be a net winner or loser from FATCA in terms of foreign deposits?  Also – in terms of revenue income raised, offset against compliance costs but taking into account that not all compliance costs retard GDP growth (arguably, some compliance costs may add to GDP while others may create a GPP lag).

The Telephone Game

How did the number jump from $60 billion to $100 billion to $150 billion in such a short matter of time?  Perhaps former Secretary of the Treasury O’Neil best poses a response.  Before the Permanent Subcommittee on Investigations of the Committee on Governmental Affairs on July 18, 2001 Secretary of the Treasury O’Neil pointed out the never ending computer life of something not true in his testimony:

“Well, thank you. I was frankly thunderstruck when I got the letter from these distinguished people, because I could not believe that they had read what I said, and I think you will hear today that they were responding to press accounts. As I said before, they did not respond to what I said at all. They responded to misrepresentations in the media, and I am sorry to be so blunt about it, but there is no other way to characterize it. If you look at the pieces that are in this book, if you can find any connection between the representations that were made in these stories and what I have said on the record and off the record, there is no connection whatsoever. But, intelligent people, including these distinguished citizens who have served in their government, took what they read at face value. Many of them know better, because they have been subjected to this, but they had forgotten.

So, when they read it in the newspaper, they filed—you would not believe, I get 2,000 letters a week and many of them are responding to things that I never said, never imagined and never would imagine, but I am still getting letters about it as though it were the real stuff simply because it appears in print. These days, with the wonderful technology we have with Lexis Nexis and all the rest of that, once this stuff is on the record it never goes away. It is always a primary source. So, when I am 95, I am going to be getting letters saying we cannot believe you did not want to prosecute money launderers. I will let them speak for themselves.”

continuing from last Saturday, March 1st’s article …

The Senate Subcommittee reported that: “According to the IRS, the current estimated annual U.S. tax gap is $450 billion, which represents the total amount of U.S. taxes owed but not paid on time, despite an overall tax compliance rate among American taxpayers of 83 percent. Contributing to that annual tax gap are offshore tax schemes responsible for lost tax revenues totaling an estimated $150 billion each year.”

To justify the reporting of the number of $150 billion a year of lost tax revenue due to “offshore tax schemes”, the Senate Report primarily cites its own investigatory reports and third party articles that refer to transfer pricing issues.  While transfer pricing regulations have been under scrutiny, at least by the Democrats, in the Senate, it is certainly not commonly held by those same Democrats that transfer pricing is illegal or constitutes an “offshore scheme”.  

It is proven beyond a doubt by the UBS, Credit Suisse, and other similar investigations, validated by the OVDI disclosures, that some Americans are noncompliant, and that some of those noncompliant Americans would owe tax if disclosing foreign income on their tax returns.  There is also no doubt that the total number of noncompliant Americans between 2008 and 2013 was at least 43,000. 

There is also no doubt that the tax that would have been collected from them had they been compliant during their time in the wilderness was in fact, relative to the reported figure of $150 billion lost annually, miniscule (somewhere probably between $300 million and $500 million a year for lost tax, with the majority of the $6 billion collected representing FBAR penalties, tax penalties, and interest).  To date, of the $150 billion referred to as lost a year to offshore schemes, only approximately .003% (a third of one percent) has been collected – and that assuming the above higher number of $500 million a year.

What is motivating the Subcommittee? 

Is the Senate searching for a magic bean to grow a money tree that will help cover up the $500 billion annual deficit (that has led to a $17 trillion national debt)?  The Subcommittee Report states: “Offshore tax evasion has been an issue of concern … because lost tax revenues contribute to the U.S. annual deficit, which today exceeds $500 billion. Collecting unpaid taxes is one way to reduce the deficit without raising taxes.”

90% of Taxpayers with Foreign Accounts are Tax Evaders!

The Taxpayer Advocate, relying on State Department statistics, cited that 7.6 million U.S. citizens reside abroad and many more U.S. residents have FBAR filing requirements, yet the IRS received only 807,040 FBAR submissions as recently as 2012.  The Taxpayer Advocate noted that in Mexico alone, more than one million U.S. citizens reside, and many Mexican citizens reside in the U.S. (and thus are required to file a FBAR for any Mexican accounts of $10,000 or greater).

Thus, more than 90% of taxpayers with foreign accounts are NOT compliant with the tax law? 7.6 million Americans abroad, at least 1 million nonresident aliens in the US, and some number of American in the US with foreign accounts equals a number of approximately 10 million taxpayers.  But the IRS reports that 87% of American residing taxpayers are compliant?  So statistically speaking, having a foreign account is indicative of being a tax evader.

Based on these numbers, being an American living in a foreign country is a leading cause of criminality.  What the statistics do not tell is which comes first?  A person tends toward criminality and thus moves to a foreign country or a person moves to a foreign country and then tends toward criminality? Enough facetiousness…     

I will greatly appreciate if a reader can supply me any studies / audit undertaken in the past five years of a statistically representative sample of the taxable incomes of these approximate 7.6 million Americans residing in foreign countries (I have of course read the CRFB articles and references).  I am curious how many of the nearly seven million non-compliant Americans:

(a) earn more income than that qualifying for the Foreign Income Exclusion of $97,600 for 2013 (combined with the Housing Allowance or Deduction Exclusion), and live in a country with lower effective tax rates than the US that US tax would be owing after the applicable tax credit on the remainder, and  

(b) of the sample, if the exclusion was not available, how many would have an excess tax credit because the foreign taxes paid are higher than the US taxes that would be due?

Maybe Foreign-Resident Americans are a Red Herring?

It will be interesting to learn if these approximate 7 – 8 million American foreign-residents in general owe tax after the foreign income / housing exemption and qualified retirement planning, or whether this group in general represents a red herring (at least as concerns filling in the $500 billion annual deficit).

$100 million is Still $100 million!

However, even if the number is only $1 billion or even $100 million collected a year from the IRS civil and criminal enforcement efforts, while it’s not going to put a dent in a $500 billion deficit, as Senator John McCain told the Credit Suisse representatives at the hearing February 26, it’s still a large amount of money that turns voters heads.

So Where Did the $150 Billion Figure Come From?

Check back next Saturday March 15 to discover the surprise answer…. 

LexisNexis FATCA Compliance Manual

Fifty contributing FATCA experts, each advising major institutions and financial service companies, authored 600 pages of analysis within the LexisNexis® Guide to FATCA Compliance (2^nd Edition): many perspectives – one voice crafted by the primary author Professor William Byrnes.

The LexisNexis® Guide to FATCA Compliance (2^nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance challenges (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems. The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA.  Chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters.

FATCA Experts Selected for the Lexis’ Guide  (please contact williambyrnes@gmail.com for an introduction to any of the below FATCA implementation experts)

Theodore C. Ahlgren, Esq. Ted Ahlgren concentrates his practice on international tax, trust, and estate planning. He has advised numerous U.S. and non-U.S. financial institutions, corporations, high net worth individuals, and their advisors on a variety of U.S. federal income, transfer, and withholding tax issues and has represented individuals and financial institutions in audits and voluntary disclosures. He participated in the submission of comments to Treasury and the IRS on the proposed FATCA regulations, and has written and spoken extensively on FATCA and other topics of relevance to international tax and estate planning. Contributions include chapter 7: Foreign Financial Institutions.

Devang Ambavi Devang Ambavi is Manager at PricewaterhouseCoopers Pvt. Ltd, India (PwC). He has over six years of experience in advising clients in multidisciplinary areas including international tax, domestic tax, exchange control and regulatory matters. More recently, he was on a two year secondment to PwC New York where he advised US based Funds on global structuring and international tax issues on a cross-jurisdictional basis. Contribution includes chapter 34: Exchange of Tax Information and Impact of FATCA for India.

Kyria Ali FCCA CIA CFE MCSI Kyria Ali, with her in-depth experience and qualifications in securities and investment (CISI), internal and forensic auditing (CIA and CFE) and financial background (FCCA) is strategically positioned as a leading business advisor in the BVI, Eastern Caribbean and Central American region. Very knowledgeable of the offshore sector, she has assisted many organisations, in the financial services industry, with risk management, compliance, FATCA and other tax related matters; just some of the areas addressed by the suite of business advisory services she provides. Contribution includes chapter 26: Exchange of Tax Information and Impact of FATCA for the The British Virgin Islands.

Michael Alliston, Esq.  Michael Alliston is a solicitor in the London office of Herbert Smith Freehills LLP. He advises on a range of corporate tax matters including mergers and acquisitions, corporate reorganizations, general finance and capital markets transactions. He also has particular experience in real estate and investment fund transactions and much of his work involves a cross-border element. Michael regularly advises clients on the transactional implications of FATCA from a UK law perspective and presents externally on the subject. Contribution includes chapter 24: U.K.-U.S. Intergovernmental Agreement and Its Implementation.

Maarten de Bruin, Esq. Maarten de Bruin advises on domestic and international tax aspects of commercial and (structured) finance transactions for Stibbe Simont. Maarten joined Stibbe’s tax department in 1989 and moved to the New York office in 1993 where he became partner in 1997. While in New York he graduated from New York University (tax LLM) and spent 6 months in the tax department of Cravath Swaine & Moore. He returned to the Amsterdam office of Stibbe in 1999 where he focused on clients in the industrial and real estate sector. His clients include Accor, Tata, APG and Super de Boer. Contribution includes chapter 30: Exchange of Tax Information and Impact of FATCA for the Netherlands.

Jean-Paul van den Berg, Esq. Jean-Paul van den Berg is a tax partner of Stibbe Simont whose areas of expertise include the application of tax treaties and EU law, major public and private cross-border mergers and acquisitions, private equity transactions (fund formation and investments), tax structuring, structured finance, debt restructuring, and corporate reorganizations. He is a regular speaker and author of articles in his practice area. He is currently based in our Amsterdam office. Previously, from 2008–2012 he was the resident tax partner in Stibbe’s New York offices and from 2002–2005 he was based in Stibbe’s London office. Contribution includes chapter 30: Exchange of Tax Information and Impact of FATCA for the The Netherlands.

Prof. William H. Byrnes, Esq.  William Byrnes has achieved authoritative prominence with 30 book and compendium volumes, 97 book & treatise chapters and book supplements, 1,000 articles, and the monthly subscription Tax Facts Intelligence available via Lexis.com. He is the author of several Lexis multi-volume publications including Foreign Tax & Trade Briefs; Tax Havens of the World; Money Laundering, Asset Forfeiture and Recovery, and Compliance—A Global Guide, and a Practical Guide to U.S. Transfer Pricing. Professionally, William Byrnes was a Senior Manager then Associate Director of international tax for Coopers and Lybrand based in its Johannesburg office. Academically, William Byrnes obtained the title of tenured law professor in 2005 at St. Thomas University and in 2008 the level of Associate Dean at Thomas Jefferson School of Law. William Byrnes pioneered online legal education in 1995, and established the first online LL.M. offered by an ABA accredited law school.  The International Tax & Financial Services graduate program enrolls approximately 200 professionals annually pursuing a Master or Doctorate.

Amanda Castellano, Esq. Amanda Castellano, an attorney working on tax, business, nonprofit and estate planning matters spent three years as an auditor with the Internal Revenue Service. She is currently a tax consultant based in Portland, Oregon. She graduated summa cum laude from Thomas Jefferson School of Law, where she served as Chief Notes Editor on the Thomas Jefferson Law Review. Contribution includes chapter 1: Introduction (Accidental American).

Luzius Cavelti, Esq. Luzius obtained his law degree from the University of Fribourg, Switzerland. He is qualified as certified tax expert (specialization in international tax) and holds an LL.M. degree from the Columbia School of Law. Luzius is admitted to the bar in Zurich and works as associate at Tappolet & Partner in Zurich. Luzius is specialized in international and domestic tax law. Contribution includes chapter 23: Switzerland-U.S. Intergovernmental Agreement and Its Implementation.

Peter Cotorceanu, Esq. Peter Cotorceanu is the Head of Product Management for Trusts and Foundations at UBS AG in Zurich. He was previously UBS’s Head of Wealth Structuring Consulting for UHNW clients in Zurich. In his current role, Peter is responsible for UBS’s FATCA compliance for trusts, foundations, and other fiduciary structures. Before joining UBS, Peter practiced law for over 20 years, both in Switzerland and the U.S., most recently at Baker & McKenzie Zurich. His practice concentrated on trust and estate planning and transfer taxes. Peter was also a law professor for a number of years at Washburn University School of Law, Topeka, Kansas and (as an adjunct) at the Marshall-Wythe School of Law, College of William and Mary, in Williamsburg, Virginia.  Peter is a former member of the Board of Governors of Virginia State Bar’s Trusts and Estates Section, as well as the Kansas Judicial Council’s Probate Advisory Committee and Estate Tax Advisory Sub-Committee.  Peter is admitted to practice in New Zealand as well as in Maryland and Virginia. He has an LL.B. (Hons) from Victoria University, Wellington, New Zealand, a J.D. (With Distinction) from Duke University, Durham, North Carolina, and an Executive LL.M. (Tax) from the New York University School of Law.  Peter is certified as a Trusts and Estates Practitioner (TEP) by STEP, and is a member of the International Bar Association and International Tax Planning Association, among other professional organizations.  Contribution includes chapter 9: FATCA and the Offshore Trust Industry.

Bruno Da Silva, LL.M.  Bruno da Silva works at Loyens & Loeff, European Direct Tax Law team, is a tax treaty adviser for the Macau special administrative region of the People’s Republic of China, and is also a researcher at the Amsterdam Centre for Tax Law of the University of Amsterdam. He lectures at different institutions such as the University of Leiden, University of Amsterdam, International Bureau of Fiscal Documentation (IBFD), Universidade Católica Portuguesa and IBDT (Brazil). He obtained an LL.M. in International Tax Law and he is currently pursuing his Ph.D. Contribution includes chapter 17: European Union Cross Border Information Reporting; and chapter 18: The OECD Role On Exchange Of Information: The TRACE Project, FATCA, and Beyond.

Prof. J. Richard Duke, Esq.  Richard Duke,  attorney, is  a member of the Alabama and the Florida Bar, specializing over forty years in income and estate tax planning and compliance, as well as asset protection, for high net wealth individuals. He served as Counsel to the Ludwig von Mises Institute for Austrian Economics 1983–1989 and a Fellow and Honorary Legal Scholar of the International Academy of Tax Advisors. Over his career he has served on numerous American Bar Association Committees and written many articles for legal and financial publications, several books, and was named to the list of “Top 100 Attorneys” in the U.S., Worth magazine, December 2005-2008. He is a Professor of Law of the LL.M. International Tax Program of Thomas Jefferson School of Law, San Diego, California and was an Adjunct Professor of Law at the Cumberland School of Law of Samford University International for Tax and Asset Protection Planning from 1983–1999. Contribution includes chapter 10: Withholding and Qualified Intermediary Reporting, chapter 11: Withholding and FATCA, chapter 12: “Withholdable” Payments, and chapter 13: Determining and Documenting the Payee.

Dr. Jan Dyckmans, Esq.  Jan Dyckmans is a German attorney at Flick Gocke Schaumburg in Frankfurt am Main, Germany where advises clients on corporate tax law in general and on international tax law matters in particular. He studied law at the University of Würzburg, Germany, where he was awarded his doctorate in 2008.  Contribution includes chapter 19: Exchange of Tax Information and Impact of FATCA for Germany.

Umurcan Gago, Esq., Umurcan Gago is a partner of PwC Turkey. He is a member of the Istanbul Bar and an Independent Chartered Accountant and Financial Advisor. Umurcan is specialised in cross border financial transactions, financial structures/products, conventional and structured financial products, investment banking products, international tax planning, securities law related matters, and financial structuring.   Contribution includes chapter 33: Exchange of Tax Information and the Impact of FATCA for Turkey.

Dr. F. Alfredo García Dr. F. Alfredo García is professor of Financial and Tax Law at the University of Valencia and Jean Monnet Chair of EU Law and Taxation. He is professor of European Taxation at Thomas Jefferson School of Law in California, and has been visiting professor at the Universities of London, Harvard, Leiden, Leuven, Bergamo and Georgetown.  Contribution includes chapter 28: Spain-U.S. Intergovernmental Agreement and its Implementation.

Dr. Valcir Gassen Dr. Valcir Gassen is a Professor of Federal University of Brasilia (UnB), participating with the support CAPES Foundation, Ministry of Education of Brazil. His hold a law degree from the University of Northwest of State of Rio Grande do Sul; an LL.M. from the Federal University of Santa Catarina; Ph.D. from the Federal University of Santa Catarina and Post-doctoral research from the University of Alicante, Spain. He coordinates since 2009 the Research Group in State, Constitution and Tax Law, with undergraduate and graduate students in UnB. Contribution includes chapter  25: Exchange of Tax Information and the Impact of FATCA for Brazil.

Arne Hansen Arne Hansen is a legal trainee of the Hanseatisches Oberlandesgericht (Higher Regional Court of Hamburg), Germany and previously undertook his stage at the Frankfurt office of Flick Gocke Schaumburg. He studied law at the University of Bayreuth, Germany, and the Victoria University of Wellington, New Zealand. He further completed an additional qualification in economics with the focus on finance and taxation at the University of Bayreuth. He is finalizing his doctoral thesis on a topic of international tax law with special regard to double tax treaties. Contribution includes chapter 20: Exchange of Tax Information and Impact of FATCA for Germany.

Mark Heroux, J.D. Mark Heroux, Principal in the Tax Services Group at Baker Tilly Virchow Krause, LLP, joined the firm in 2008. He has more than 25 years of tax litigation, technical, and program management experience. Mark began his career in 1986 with the IRS Office of Chief Counsel, and left public service in 2000. Mark specializes in IRS procedures including the withholding requirements of the US Internal Revenue Code, and dispute resolution including transfer pricing and the negotiation of Advance Pricing Agreements. He leads the IRS Practice and Procedures group, and has provided tax and business advisory services to large and mid-size financial institutions, and high net worth individuals. Contribution includes chapter 26: Exchange of Tax Information and Impact of FATCA for the The British Virgin Islands.

Véronique Hoffeld, Esq. Véronique Hoffeld, attorney-at-law, is a member of the Management Committee of Loyens & Loeff Luxembourg and heads the Luxembourg Commercial and Litigation department.  She can be considered as a generalist lawyer, whose activities cover matters in the areas of commercial law (negotiation of contracts), litigation and arbitration, bankruptcy & restructuring, IP law, real estate law, environment law, E-commerce and new technologies. Véronique is also occasionally involved in maritime and administrative law matters.  Prior to joining Loyens & Loeff Luxembourg, Véronique worked for more than 10 years in another important Luxembourg law firm at which she was made partner in 2003. Véronique is a member of the Luxembourg Bar since 1996.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

Rob. H. Holt, Esq. Rob H. Holt is a practicing attorney of thirty years licensed in New York and Texas representing real estate investment companies, university professors, and a variety of other business owners in the formation of their entities, business contracts, and distribution and channel documentation. He is currently completing his LL.M. in Taxation from Thomas Jefferson School of Law. Rob and his wife of 29 years live in College Station/Bryan, Texas. He is an avid, amateur ballroom dancer and loves the waltz, foxtrot, and tango. Contribution includes chapter 7: Foreign Financial Institutions.

Rajul Jain Rajul Jain is Senior Manager at PricewaterhouseCoopers Pvt. Ltd, India (PwC). He has more than 11 years of  International professional experience which involves proactively leading global teams and providing Financial and Strategic analysis, advice on RBI and Regulatory frameworks,  Designing  Compliance frameworks, Project management  advice and performing Enterprise risk reviews. Contribution includes chapter 34 Exchange of Tax Information and Impact of FATCA for India.

Richard Kando, CPA  Richard Kando, a Certified Public Accountant (New York) is a Director at Navigant Consulting. Richard specializes in forensic accounting and compliance matters relating to Government investigations, anti-money laundering and the Foreign Account Tax Compliance Act (“FATCA”). Richard is a leader of Navigant’s FATCA task force. Previously, Richard served as a Special Agent with the IRS Criminal Investigation Division where he received the U.S. Department of Justice—Tax Division Assistant Attorney General’s Special Contribution Award. Contribution includes chapter 2: Practical Considerations for Developing a FATCA Compliance Program.

Denis Kleinfeld, Esq., CPA. Denis Kleinfeld is Of Counsel to Fuerst Ittleman David & Joseph, PL, in Miami, Florida and a Professor of Law of the LL.M. International Tax Program of Thomas Jefferson School of Law, San Diego, California. The author of chapters in prominent legal publications, he has written extensively in professional and general circulation magazines and publications on a wide variety of tax, insurance, estate planning, treaty planning, domestic and international asset protection, and investment issues as well as observations on relevant political, social and economic issues. Mr. Kleinfeld is the founder of, and now serves as co-chairman for, the Florida Annual Wealth Protection Conference and is a speaker at a wide variety of professional conferences, seminars, and symposiums in the United States and around the world. After obtaining his B.S. degree in Accountancy from the University of Illinois in 1967 and obtaining his license as a Certified Public Accountant, Mr. Kleinfeld enrolled at the Loyola University of Chicago School of Law, graduating in 1970. He was admitted to the Illinois Bar in 1970 and was employed as an attorney with the Internal Revenue Service in the Estate and Gift Tax Division for four years before going into private practice. Mr. Kleinfeld has been a member of the Florida Bar since 1983, and is also a member of the Florida Institute of Certified Public Accountants, the American Bar Association, and the American Institute of Certified Public Accountants. Contribution includes chapter 1: Introduction and chapter 5: FBAR & 8938 FATCA Reporting.

Richard L. Knickerbocker, Esq. Richard L. Knickerbocker is the senior partner in the Los Angeles office of the Knickerbocker Law Group. He is the former City Attorney of the City of Santa Monica. He was designated Super Lawyer five years running by Los Angeles magazine, made numerous television appearances and has extensive publications. He has taught law in various colleges and law schools and is a certified civil trial advocate and appellate specialist. He graduated from the University of Southern California Gould School of Law with both a J.D. and an LL.M. degree. Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Saloi Abou-Jaoude’ Knickerbocker  Saloi Abou-Jaoude’ Knickerbocker is a Legal Administrator in the Los Angeles office of the Knickerbocker Law Group. She holds LL.M. (Summa Cum Laude) in International Taxation and Financial Services has earned her J.D. (Summa Cum Laude). She has concentrated her practice and research on shari’a finance. She has published Shari’a Finance: Rapid Expansion With the Islamic Golden Age—Some International Taxation Implications in the TaxTalk Magazine (South Africa).  Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Shinjini Kumar Shinjini Kumar is Executive Director at PricewaterhouseCoopers Pvt. Ltd, India (PwC). She is the Sector leader for Banking and Capital Markets and also heads Financial Services regulatory practice at PwC India. Prior to joining PwC in 2010, Shinjini has held senior positions at the Reserve Bank of India (RBI) and Bank of America-Merill Lynch. Her vast experience with the regulator and industry gives her the distinctive opportunity to engage with the industry, media and policy makers on important issues affecting the industry. Contribution includes chapter 34 Exchange of Tax Information and Impact of FATCA for India.

Mathias M. Link, Esq., LL.M.  Mathias Link is a counsel in the Frankfurt office of Hengeler Mueller. He is qualified as German attorney-at-law and tax consultant, holds an LL.M. degree from Columbia University and is also admitted to the New York bar. He advises corporate clients, banks and financial services institutions on a variety of tax matters including mergers and acquisitions, reorganizations, finance and capital markets transactions. He has particular expertise in the structuring of private equity, real estate and investment fund transactions and his main focus is on international tax aspects. Mathias regularly advises clients on the implications of FATCA from a German law perspective.  Contribution includes chapter 19: Germany.-U.S. Intergovernmental Agreement and Its Implementation.

Jinghua Liu, JD Jinghua Liu is a partner in the Tax group at Baker & McKenzie and is based in the Beijing office. She heads the tax dispute resolution practice in China. She joined Baker & McKenzie in 2004 and has been practicing China tax law since then. She is a frequent speaker at international tax conferences on PRC taxation and international tax planning, and authored and co-authored various articles in leading tax publications. Chambers Asia Pacific lists her as one of the recommended lawyers for tax in 2011 and 2012.  Contribution includes chapter 29: Exchange of Tax Information and Impact of FATCA for China.

Jeffrey Locke, Esq. Jeffrey Locke is Director at Navigant Consulting. At Navigant, he is a leader of the FATCA Task Force and has drafted numerous white papers and articles concerning the practical implementation of FATCA. Prior to joining Navigant, he served as an assistant New York state attorney general in the Criminal Prosecutions Bureau, worked in the prosecutor’s office for the United Nations in Kosovo and was an assistant public defender in Philadelphia. He received his law degree from Columbia Law School. Mr. Locke recently contributed a chapter to the book “International Prosecutors” published by Oxford University Press. Contribution includes chapter 2: Practical Considerations for Developing a FATCA Compliance Program.

Josh Lom  Josh works at Herbert Smith Freehills LLP having graduated from Oxford University. Contributions include chapter 24: UK-U.S. Intergovernmental Agreement and Its Implementation.

Jason R. Miller  Jason R. Miller recently spent the summer as a stagier at PwC Istanbul working with Umurcan Gago to author several chapters on Turkey for Lexis publications.  He will graduate in 2014 from Thomas Jefferson School of Law with his Juris Doctorate specializing in Global Legal Studies and Business Law.  Jason has a BS in Business Administration from California Polytechnic State University, San Luis Obispo, with a concentration in Human Resources.  He has contributed to publications for LexisNexis and Wolters Kluwer, including chapters on Company Law, AML, FATCA, and Foreign Tax and Trade Briefs.  Jason is an Editor of the Thomas Jefferson Law Review.   Contribution includes: chapter 33 Exchange of Tax Information and the Impact of FATCA for Turkey.

Dr. Robert J. Munro Dr. Robert Munro is the author of 35 published books including Lexis’ three volume Tax Havens of the World, two volume Foreign Tax & Trade Briefs, and Money Laundering, Asset Forfeiture and Recovery, and Compliance—A Global Guide. He is a Professor of the International Tax & Financial Services Graduate Program of Thomas Jefferson School of Law, San Diego, California. A former Law Librarian at University of Florida College of Law, Dr. Munro was the Director of the Center for International Financial Crimes Studies at UF and continues as a Senior Research Fellow and Director of Research for North America of CIDOEC at Jesus College, Cambridge University, England. He has addressed audiences at Cambridge University, the University of Florida, the University of London, the CIA and the U.S. State Department and created, organized and chaired over twenty conferences in Miami, Aruba, Curacao, the Bahamas, Washington, D.C., New York City, Cambridge, England and San Francisco.

Rachel O’Toole  Rachel O’Toole BA, LL.B, BL, is a barrister-at-law licensed in Ireland and holds the Master of Laws, International Taxation & Financial Services (Thomas Jefferson School of Law, San Diego). She practices a wide range of civil litigation. Besides her role as trial advocate, her work includes advice in financial and debt related issues, planning law compliance, implementation and compliance of European environmental law, and construction and contract disputes. She is an accredited civil and commercial mediator. She has researched and presented papers on current and emerging areas of financial law and compliance facing practitioners in Ireland. Contribution includes Chapter 20: Ireland-U.S. Intergovernmental Agreement and Its Implementation.

Dr. Maji C. Rhee  Maji C. Rhee is a professor of Waseda University located in Tokyo, Japan where she teaches courses on language and legal communications. Rhee received her Ed.D. from Rutgers, her LL.M. in International Taxation & Financial Services from Thomas Jefferson School of Law and is currently finishing her J.S.D. dissertation on transfer pricing in Japan. Contribution includes chapter 21: Japan-U.S. Intergovernmental Agreement and Its Implementation.

Jean Richard, Esq. Jean Richard, a Canadian attorney, previously worked for the Quebec Tax Department, as a Senior Tax Manager with a large international accounting firm and as a Tax & Estate consultant for a pre-eminent Canadian insurance company. He is currently the Vice President and Sr. Wealth Management Consultant of the BMO Financial Group. He completed a LL.L. at University of Montreal, was admitted to the Quebec Bar Association in 1981. He also completed the Canadian ‘In Depth Tax Course’ (Canadian Institute of Chartered Accountant), a Master in International Taxation with the Australian School of Taxation (ATAX), University of New South Wale, Sydney, Australia and a LL.M. in International Tax and Financial Services (International Taxation) with the Thomas Jefferson School of Law. He is a licensed financial planner and financial security advisor.  Contribution includes chapter 27: Exchange of Tax Information and Impact of FATCA for Canada.

Michael J. Rinaldi, II, CPA.  Mr. Rinaldi represents U.S. and foreign institutions and families in a broad range of advisory activities including private equity real estate opportunity funds, with regard to formation, acquisitions, operations, dispositions and development of significant properties and portfolios. He is a Professor in the graduate international tax law program at Thomas Jefferson School of Law, where he teaches on Trusts, Private Equity Funds and Tax Treaties. Professor Rinaldi has authored several publications for Kluwer Law International, Jordan’s and LexisNexis. He is licensed as a certified public accountant in the District of Columbia and is a member of the International Tax Planning Association (ITPA), the Society of Trust and Estate Practitioners (STEP) and the American Bar Association, Tax Section-Partnership and US Activities of Foreigners & Tax Treaties Committees. He holds graduate degrees in accounting and tax law (both US and International). Contributions includes chapter 6: Determining U.S. Ownership Under FATCA; chapter 7: Foreign Financial Institutions; and chapter 8: Non-Financial Foreign Entities.

Edgardo Santiago-Torres, Esq. Edgardo Santiago-Torres is an attorney at law, principal of Santiago Law Group, LLC, and of counsel of the Knickerbocker Law Group, representing individuals and entities in corporate, taxation, and estate planning litigation. Mr. Santiago is also a Certified Public Accountant and a Chartered Global Management Accountant, pursuant to the AICPA and CIMA rules and regulations, admitted by the Puerto Rico Board of Accountancy to practice Public Accounting in Puerto Rico. He holds an LL.M. in International Taxation and Financial Services (highest honors) and a Juris Doctor (honors) of the University of Puerto Rico School of Law.  Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Hope M. Shoulders, Esq.  Hope M. Shoulders is a licensed attorney in the State of New Jersey. She is currently consulting for a major insurance company assisting with their implementation of FATCA. She is also an adjunct professor for the Thomas Jefferson School of Law. She  previously worked for General Motors, National Transportation Safety Board and the Department of Commerce. She completed her LL.M. in International Taxation from Thomas Jefferson School of Law in San Diego, California. She is a contributor of numerous articles and completed her thesis on OECD transfer pricing and business restructuring. She earned her J.D. and her MBA from the University of Tennessee and a Bachelors of Science from the University of Virginia. Contribution includes chapter 10: FATCA and the Insurance Industry.

Jason Simpson, LL.M., CRA, CCA  Jason Simpson is the Director of the Miami office for Global Atlantic Partners, overseeing all operations in Florida, the Caribbean and most of Latin America. He has worked previously as a bank compliance employee and advisor at various large and mid-sized financial institutions over the past ten years. He has been a key component in the removal of Cease and Desist Orders as well as other written regulatory agreements within a number of Domestic and International Banks, and designed complete AML/BSA units for domestic as well as international banks with over ten million accounts. He is an Adjunct Faculty Member of Thomas Jefferson School of Law for Compliance, AML and Fraud, where he holds a Master of Laws in International Taxation with a concentration specialized in Anti-Money Laundering, Anti-Terrorist Financing and Compliance. Through various online venues, he creates and teaches specialized webinars in both English and Spanish focused compliance. Contribution includes chapter 3: FATCA Compliance and Integration of Information Technology; and chapter 4: Financial Institution Account Remediation.

Dr. Alberto Gil Soriano, Esq. Alberto Gil Soriano is a Spanish attorney who holds a Ph.D. in Tax Law at University of Bologna (Italy), LL.M. in International Taxation and Financial Services at Thomas Jefferson School of Law in San Diego (California) and is Law degree from the University of Valencia (Spain). He has worked at the University of Valencia, at the European Commission’s Anti-Fraud Office in Brussels, and most recently at the Legal Department of the International Monetary Fund’s Financial Integrity Group in Washington, D.C. He currently works at the Fiscal Department of Uría Menéndez Abogados, S.L.P in Barcelona (Spain). Contributions include chapter 1: Introduction and chapter 15: Framework of Intergovernmental Agreements.

Krisztina Szombathy, Esq.  Krisztina Szombathy joined the Commercial & Litigation Department of Loyens & Loeff Luxembourg in October 2013.  She specializes in dispute resolution, and advises on commercial and civil law. Her areas of expertise also include European law, energy law and intellectual property. Before joining Loyens & Loeff, Krisztina acquired experience in legal drafting, notably in European and energy law matters during an internship at the European Court of Justice in Luxembourg.  Krisztina has been a member of the Luxembourg Bar since spring 2013.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

Debora de Souza Correa Talutto  Debora de Souza Correa Talutto is the International Transfer Pricing Manager at Temenos Banking Software Co., and a professor of international transfer pricing at Thomas Jefferson School of Law International Tax graduate program.  She is a sought after Brazilian tax authority, having authored the Brazilian chapter of LexisNexis’ Foreign Tax and Trade Briefs, the Brazilian chapter of Lexis’ Anti Money Laundering, Asset Forfeiture, & Recovery Guide, and most recently the Cost Sharing Arrangement chapter of Lexis’ Practical Guide to U.S. Transfer Pricing.    Ms. Talutto previously served as a tax consultant at Deloitte (Brazil) before earning her LL.M. in International Tax from University of Florida.  She holds an MBA, an LL.B. (Brazil), as well as a post-graduate degree in Brazilian taxation.  Contributions include chapter 25: Exchange of Tax Information and Impact of FATCA for Brazil.

Andrey Tereschenko, Esq.  Andrey Tereschenko is a tax partner in the Moscow office of Pepeliaev Group LLC. He focuses on tax law and has a high level of expertise in providing advice to major Russian and foreign companies on a wide range of tax issues but especially the implementation of compensation tax arrangements. Andrey has participated in projects to set up businesses in Russia, including assessment of the tax environment in the chosen business region, investment agreements with regional authorities and tax support for due diligence. Andrey has been directly involved in tax structuring of investment projects, particularly in the sphere of construction, land and real estate acquisition. Contributions include chapter 32: Exchange of Tax Information and Impact of FATCA for Russia.

Lily L. Tse, CPA.  Ms. Tse, a partner of Rinaldi & Associates (Washington, D.C.), represents US and foreign real estate private equity funds and property owners with regard to financial reporting and international tax matters. Her area of practice includes real estate development and leasing, joint ventures, consolidations and mezzanine financing. She has significant experience in U.S. withholding issues effecting foreign partnerships and trusts. Ms. Tse also heads the firm’s audit practice specializing in the development and operation of multi-family housing. Ms. Tse has been qualified as an expert witness in Federal Court, providing testimony in the area of real estate financing. Ms. Tse is licensed as a certified public accountant in the District of Columbia and holds graduate degrees in business and taxation. Contributions include chapter 7: Foreign Financial Institutions.

Dr. Oliver Untersander, Esq.  Oliver Untersander obtained his law degree and his PhD from the University of Zurich. Her holds a LL.M. from the New York University (international tax) and is admitted to the bar in Zurich (Switzerland). He is partner at Tappolet & Partner in Zurich. He is experienced in Swiss and international corporate taxation, corporate reorganizations and tax litigation. Contribution includes chapter 23: Switzerland-U.S. Intergovernmental Agreement and Its Implementation.

Mauricio Cano del Valle, Esq.  Mauricio Cano del Valle is a Mexican attorney who has previously worked for the Mexican Ministry of Finance (Secretaría de Hacienda),  Deloitte Mexico and the Amicorp Group. He is the founding partner of Brook & Cano SC, a Mexican boutique Law Firm, specializing on private clients, HNWI, UHNWI, their families and their businesses. Mauricio has been a professor at both the undergraduate and the graduate level at ITAM, the author of the book “Game Theory and Tax Evasion” published in Mexico in 2006, and the most recently published paper on “Game Theory and Minimum Taxes” included as part of a book on “Game Theory and Contemporary Law” published in Mexico in 2009. He holds a Law Degree, a Masters Degree in Law and Economics, and an MBA. Contribution includes chapter 22: Mexico-U.S. Intergovernmental Agreement and Its Implementation.

Janneke Versantvoort  Janneke Versantvoort is an international tax specialist and a member of the general tax practice at Loyens & Loeff Luxembourg. She is specialized in international tax law, focusing on advising multinational clients on cross-border transactions, group restructurings, project financing and transfer pricing. She worked for three years at the Loyens & Loeff Rotterdam office and is seconded to the Luxembourg office for two years.  Janneke is a member of the Dutch Association of Tax Advisers (NOB) and a member of the Young IFA in Luxembourg.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

John Walker, Esq.  John M. Walker, Esq., LL.M., is an international tax attorney who earned his LL.M. in International Taxation and Financial Services. He focuses on international tax compliance for high-net worth individuals as well as foreign trust compliance and structuring under the Foreign Account Tax Compliance Act (FATCA). He is Of Counsel to Duke Law Firm, P.C., and Michael Rinaldi & Co, LLP . Contributions include chapter 6: Determining U.S. Ownership Under FATCA, chapter 12: FATCA Withholding Compliance, chapter 13: “Withholdable” Payments Under FATCA, and chapter 14: Determining and Documenting the Payee.

Prof. Bruce Zagaris, Esq.  Bruce Zagaris is a partner at the Washington, D.C. law firm Berliner, Corcoran & Rowe, LLP, where he practices tax controversy and international criminal law, including representing individuals on voluntary disclosures, audits, and litigation as well as consulting and serving as an expert witness. He represents foreign governments, including helping negotiate treaties. He is an adjunct law professor of the LL.M. in International Taxation and Financial Services at Thomas Jefferson School of Law in San Diego. Mr. Zagaris is founder and editor of the International Enforcement Law Reporter (www.ielr.com). He is the author of International White Collar Crime (Cambridge U. Press 2010). Contribution includes chapter 15: Analysis of Current Intergovernmental Agreements.

Qiguang (Hardy) Zhou, LL.M., CPA  Qiguang (Hardy) Zhou works in the Tax group at Baker & McKenzie and is based in the Shanghai office. He obtained an LL.M. in International Tax Law. Contribution includes chapter 29: Exchange of Tax Information and Impact of FATCA for China.

Chapter 1 Background and Current Status of FATCA
Chapter 2 Practical Considerations for Developing a FATCA Compliance Program
Chapter 3 FATCA Compliance and Integration of Information Technology
Chapter 4 Financial Institution Account Remediation
Chapter 5 FBAR and Form 8938 Reporting and List of International Taxpayer IRS Forms
Chapter 6 Determining U.S. Ownership of Foreign Entities
Chapter 7 Foreign Financial Institutions
Chapter 8 Non-Financial Foreign Entities
Chapter 9 FATCA and the Offshore Trust Industry
Chapter 10 FATCA and the Insurance Industry
Chapter 11 Withholding and Qualified Intermediary
Chapter 12 FATCA Withholding Compliance
Chapter 13 ”Withholdable” Payments
Chapter 14 Determining and Documenting the Payee
Chapter 15 Framework of Intergovernmental Agreements
Chapter 16 Analysis of Current Intergovernmental Agreements
Chapter 17 European Union Cross Border Information Reporting
Chapter 18 The OECD Role in Exchange of Information: The Trace Project, FATCA, and Beyond
Chapter 19 Germany-U.S. Intergovernmental Agreement and its Implementation
Chapter 20 Ireland-U.S. Intergovernmental Agreement and its Implementation
Chapter 21 Japan-U.S. Intergovernmental Agreement and its Implementation
Chapter 22 Mexico-U.S. Intergovernmental Agreement and its Implementation
Chapter 23 Switzerland-U.S. Intergovernmental Agreement and its Implementation
Chapter 24 The United Kingdom-U.S. Intergovernmental Agreement and its Implementation
Chapter 25 Exchange of Tax Information and the Impact of FATCA for Brazil
Chapter 26 Exchange of Tax Information and the Impact of FATCA for The British Virgin Islands
Chapter 27 Exchange of Tax Information and the Impact of FATCA for Canada
Chapter 28 Exchange of Tax Information and the Impact of FATCA for Spain
Chapter 29 Exchange of Tax Information and the Impact of FATCA for China
Chapter 30 Exchange of Tax Information and the Impact of FATCA for Netherlands
Chapter 31 Exchange of Tax Information and the Impact of FATCA for Luxembourg
Chapter 32 Exchange of Tax Information and the Impact of FATCA for Russia
Chapter 33 Exchange of Tax Information and the Impact of FATCA for Turkey
Chapter 34 Exchange of Tax Information and the Impact of FATCA for India

Too Many FATCA Loopholes

According to the 175-page bipartisan staff report FATCA’s implementing regulations have created multiple loopholes, without statutory basis, in the disclosure requirements.

Among other problems, the Senate Subcommittee stated that the FATCA regulatory loopholes will:

1. require disclosure of only the largest dollar accounts;
2. permit banks to ignore, in most cases, bank account information that is kept on paper rather than electronically;
3. allow banks to treat accounts opened by offshore shell entities as non-U.S. accounts even when the entity is owned by a U.S. taxpayer; and
4. remaining disclosure requirements can be easily circumvented by U.S. persons opening accounts below the reporting thresholds of $50,000 at more than one bank.

Treaty Requests Not Obtaining Compliance

The Senate Subcommittee stated: “the revised U.S.-Swiss tax treaty, which has yet to be ratified by the Senate, applies only to requests for accounts that were open after its signing date in September 2009, which excludes the years in which the bulk of misconduct by Swiss banks and their U.S. clients took place. The treaty also has a convoluted process for obtaining the names of accountholders who can seek to block disclosure in Swiss courts, and Swiss law has created new evidentiary burdens for U.S. requests seeking information about unnamed U.S. taxpayers with accounts at Swiss financial institutions.”

The Senate Subcommittee cited a 2011 GAO study of how the United States leveraged its treaty network, including tax treaties, TIEAs, and MLATs. “GAO found that the United States had used the agreements to establish automatic information exchanges with 25 foreign jurisdictions that, in 2010 alone, provided the IRS with about 2.1 million data items. GAO also determined that, over the five year period from 2006 to 2010, the IRS had made a comparatively limited number of requests for information about specified taxpayers, initiating a total of about 900 such requests, ranging from a low of 165 to a high of 236 requests per year. Each of those requests could refer to one or multiple taxpayers. GAO further noted that the U.S. request activity was concentrated among a small group of countries, and that about 700 of the 900 requests made by the IRS involved a single foreign jurisdiction… GAO also observed that the median time to resolve a U.S. request for information was 149 days, or about five months.”

$6 Billion Collected Over 6 Years

According to the GAO Report and the Subcommittee report, the 2008, 2011, and the ongoing 2012 offshore voluntary disclosure initiative (OVDI) have led to 43,000 taxpayers paying back taxes, interest and penalties totaling $6 billion to date, with more expected.

However, the vast majority of this recovered money is not tax revenue but instead results from the FBAR penalties assessed for not reporting a foreign account.  The Taxpayer Advocate found that for noncompliant taxpayers with small accounts, the FBAR and tax penalties reached nearly 600% of the actual tax due!  The median offshore penalty was about 381% of the additional tax assessed for taxpayers with median-sized account balances.

Is $150 Billion Actually Lost Each Year to Offshore Noncompliance?

Check back next Saturday (March 8) to discover the answer…. 

LexisNexis FATCA Compliance Manual

Fifty contributing FATCA experts, each advising major institutions and financial service companies, authored 600 pages of analysis within the LexisNexis® Guide to FATCA Compliance (2^nd Edition): many perspectives – one voice crafted by the primary author Professor William Byrnes.

The LexisNexis® Guide to FATCA Compliance (2^nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance challenges (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems. The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA.  Chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters.

FATCA Experts Selected for the Lexis’ Guide  (please contact williambyrnes@gmail.com for an introduction to any of the below FATCA implementation experts)

Theodore C. Ahlgren, Esq. Ted Ahlgren concentrates his practice on international tax, trust, and estate planning. He has advised numerous U.S. and non-U.S. financial institutions, corporations, high net worth individuals, and their advisors on a variety of U.S. federal income, transfer, and withholding tax issues and has represented individuals and financial institutions in audits and voluntary disclosures. He participated in the submission of comments to Treasury and the IRS on the proposed FATCA regulations, and has written and spoken extensively on FATCA and other topics of relevance to international tax and estate planning. Contributions include chapter 7: Foreign Financial Institutions.

Devang Ambavi Devang Ambavi is Manager at PricewaterhouseCoopers Pvt. Ltd, India (PwC). He has over six years of experience in advising clients in multidisciplinary areas including international tax, domestic tax, exchange control and regulatory matters. More recently, he was on a two year secondment to PwC New York where he advised US based Funds on global structuring and international tax issues on a cross-jurisdictional basis. Contribution includes chapter 34: Exchange of Tax Information and Impact of FATCA for India.

Kyria Ali FCCA CIA CFE MCSI Kyria Ali, with her in-depth experience and qualifications in securities and investment (CISI), internal and forensic auditing (CIA and CFE) and financial background (FCCA) is strategically positioned as a leading business advisor in the BVI, Eastern Caribbean and Central American region. Very knowledgeable of the offshore sector, she has assisted many organisations, in the financial services industry, with risk management, compliance, FATCA and other tax related matters; just some of the areas addressed by the suite of business advisory services she provides. Contribution includes chapter 26: Exchange of Tax Information and Impact of FATCA for the The British Virgin Islands.

Michael Alliston, Esq.  Michael Alliston is a solicitor in the London office of Herbert Smith Freehills LLP. He advises on a range of corporate tax matters including mergers and acquisitions, corporate reorganizations, general finance and capital markets transactions. He also has particular experience in real estate and investment fund transactions and much of his work involves a cross-border element. Michael regularly advises clients on the transactional implications of FATCA from a UK law perspective and presents externally on the subject. Contribution includes chapter 24: U.K.-U.S. Intergovernmental Agreement and Its Implementation.

Maarten de Bruin, Esq. Maarten de Bruin advises on domestic and international tax aspects of commercial and (structured) finance transactions for Stibbe Simont. Maarten joined Stibbe’s tax department in 1989 and moved to the New York office in 1993 where he became partner in 1997. While in New York he graduated from New York University (tax LLM) and spent 6 months in the tax department of Cravath Swaine & Moore. He returned to the Amsterdam office of Stibbe in 1999 where he focused on clients in the industrial and real estate sector. His clients include Accor, Tata, APG and Super de Boer. Contribution includes chapter 30: Exchange of Tax Information and Impact of FATCA for the Netherlands.

Jean-Paul van den Berg, Esq. Jean-Paul van den Berg is a tax partner of Stibbe Simont whose areas of expertise include the application of tax treaties and EU law, major public and private cross-border mergers and acquisitions, private equity transactions (fund formation and investments), tax structuring, structured finance, debt restructuring, and corporate reorganizations. He is a regular speaker and author of articles in his practice area. He is currently based in our Amsterdam office. Previously, from 2008–2012 he was the resident tax partner in Stibbe’s New York offices and from 2002–2005 he was based in Stibbe’s London office. Contribution includes chapter 30: Exchange of Tax Information and Impact of FATCA for the The Netherlands.

Prof. William H. Byrnes, Esq.  William Byrnes has achieved authoritative prominence with 30 book and compendium volumes, 97 book & treatise chapters and book supplements, 1,000 articles, and the monthly subscription Tax Facts Intelligence available via Lexis.com. He is the author of several Lexis multi-volume publications including Foreign Tax & Trade Briefs; Tax Havens of the World; Money Laundering, Asset Forfeiture and Recovery, and Compliance—A Global Guide, and a Practical Guide to U.S. Transfer Pricing. Professionally, William Byrnes was a Senior Manager then Associate Director of international tax for Coopers and Lybrand based in its Johannesburg office. Academically, William Byrnes obtained the title of tenured law professor in 2005 at St. Thomas University and in 2008 the level of Associate Dean at Thomas Jefferson School of Law. William Byrnes pioneered online legal education in 1995, and established the first online LL.M. offered by an ABA accredited law school. The International Tax & Financial Services graduate program enrolls approximately 200 professionals annually pursuing a Master or Doctorate.

Amanda Castellano, Esq.   Amanda Castellano, an attorney working on tax, business, nonprofit and estate planning matters spent three years as an auditor with the Internal Revenue Service. She is currently a tax consultant based in Portland, Oregon. She graduated summa cum laude from Thomas Jefferson School of Law, where she served as Chief Notes Editor on the Thomas Jefferson Law Review. Contribution includes chapter 1: Introduction (Accidental American).

Luzius Cavelti, Esq. Luzius obtained his law degree from the University of Fribourg, Switzerland. He is qualified as certified tax expert (specialization in international tax) and holds an LL.M. degree from the Columbia School of Law. Luzius is admitted to the bar in Zurich and works as associate at Tappolet & Partner in Zurich. Luzius is specialized in international and domestic tax law. Contribution includes chapter 23: Switzerland-U.S. Intergovernmental Agreement and Its Implementation.

Peter Cotorceanu, Esq. Peter Cotorceanu is the Head of Product Management for Trusts and Foundations at UBS AG in Zurich. He was previously UBS’s Head of Wealth Structuring Consulting for UHNW clients in Zurich. In his current role, Peter is responsible for UBS’s FATCA compliance for trusts, foundations, and other fiduciary structures. Before joining UBS, Peter practiced law for over 20 years, both in Switzerland and the U.S., most recently at Baker & McKenzie Zurich. His practice concentrated on trust and estate planning and transfer taxes. Peter was also a law professor for a number of years at Washburn University School of Law, Topeka, Kansas and (as an adjunct) at the Marshall-Wythe School of Law, College of William and Mary, in Williamsburg, Virginia.  Peter is a former member of the Board of Governors of Virginia State Bar’s Trusts and Estates Section, as well as the Kansas Judicial Council’s Probate Advisory Committee and Estate Tax Advisory Sub-Committee.  Peter is admitted to practice in New Zealand as well as in Maryland and Virginia. He has an LL.B. (Hons) from Victoria University, Wellington, New Zealand, a J.D. (With Distinction) from Duke University, Durham, North Carolina, and an Executive LL.M. (Tax) from the New York University School of Law.  Peter is certified as a Trusts and Estates Practitioner (TEP) by STEP, and is a member of the International Bar Association and International Tax Planning Association, among other professional organizations.  Contribution includes chapter 9: FATCA and the Offshore Trust Industry.

Bruno Da Silva, LL.M.  Bruno da Silva works at Loyens & Loeff, European Direct Tax Law team, is a tax treaty adviser for the Macau special administrative region of the People’s Republic of China, and is also a researcher at the Amsterdam Centre for Tax Law of the University of Amsterdam. He lectures at different institutions such as the University of Leiden, University of Amsterdam, International Bureau of Fiscal Documentation (IBFD), Universidade Católica Portuguesa and IBDT (Brazil). He obtained an LL.M. in International Tax Law and he is currently pursuing his Ph.D. Contribution includes chapter 17: European Union Cross Border Information Reporting; and chapter 18: The OECD Role On Exchange Of Information: The TRACE Project, FATCA, and Beyond.

Prof. J. Richard Duke, Esq.  Richard Duke,  attorney, is  a member of the Alabama and the Florida Bar, specializing over forty years in income and estate tax planning and compliance, as well as asset protection, for high net wealth individuals. He served as Counsel to the Ludwig von Mises Institute for Austrian Economics 1983–1989 and a Fellow and Honorary Legal Scholar of the International Academy of Tax Advisors. Over his career he has served on numerous American Bar Association Committees and written many articles for legal and financial publications, several books, and was named to the list of “Top 100 Attorneys” in the U.S., Worth magazine, December 2005-2008. He is a Professor of Law of the LL.M. International Tax Program of Thomas Jefferson School of Law, San Diego, California and was an Adjunct Professor of Law at the Cumberland School of Law of Samford University International for Tax and Asset Protection Planning from 1983–1999. Contribution includes chapter 10: Withholding and Qualified Intermediary Reporting, chapter 11: Withholding and FATCA, chapter 12: “Withholdable” Payments, and chapter 13: Determining and Documenting the Payee.

Dr. Jan Dyckmans, Esq.  Jan Dyckmans is a German attorney at Flick Gocke Schaumburg in Frankfurt am Main, Germany where advises clients on corporate tax law in general and on international tax law matters in particular. He studied law at the University of Würzburg, Germany, where he was awarded his doctorate in 2008.  Contribution includes chapter 19: Exchange of Tax Information and Impact of FATCA for Germany.

Umurcan Gago, Esq., Umurcan Gago is a partner of PwC Turkey. He is a member of the Istanbul Bar and an Independent Chartered Accountant and Financial Advisor. Umurcan is specialised in cross border financial transactions, financial structures/products, conventional and structured financial products, investment banking products, international tax planning, securities law related matters, and financial structuring.   Contribution includes chapter 33: Exchange of Tax Information and the Impact of FATCA for Turkey.

Dr. F. Alfredo García Dr. F. Alfredo García is professor of Financial and Tax Law at the University of Valencia and Jean Monnet Chair of EU Law and Taxation. He is professor of European Taxation at Thomas Jefferson School of Law in California, and has been visiting professor at the Universities of London, Harvard, Leiden, Leuven, Bergamo and Georgetown.  Contribution includes chapter 28: Spain-U.S. Intergovernmental Agreement and its Implementation.

Dr. Valcir Gassen Dr. Valcir Gassen is a Professor of Federal University of Brasilia (UnB), participating with the support CAPES Foundation, Ministry of Education of Brazil. His hold a law degree from the University of Northwest of State of Rio Grande do Sul; an LL.M. from the Federal University of Santa Catarina; Ph.D. from the Federal University of Santa Catarina and Post-doctoral research from the University of Alicante, Spain. He coordinates since 2009 the Research Group in State, Constitution and Tax Law, with undergraduate and graduate students in UnB. Contribution includes chapter  25: Exchange of Tax Information and the Impact of FATCA for Brazil.

Arne Hansen Arne Hansen is a legal trainee of the Hanseatisches Oberlandesgericht (Higher Regional Court of Hamburg), Germany and previously undertook his stage at the Frankfurt office of Flick Gocke Schaumburg. He studied law at the University of Bayreuth, Germany, and the Victoria University of Wellington, New Zealand. He further completed an additional qualification in economics with the focus on finance and taxation at the University of Bayreuth. He is finalizing his doctoral thesis on a topic of international tax law with special regard to double tax treaties. Contribution includes chapter 20: Exchange of Tax Information and Impact of FATCA for Germany.

Mark Heroux, J.D. Mark Heroux, Principal in the Tax Services Group at Baker Tilly Virchow Krause, LLP, joined the firm in 2008. He has more than 25 years of tax litigation, technical, and program management experience. Mark began his career in 1986 with the IRS Office of Chief Counsel, and left public service in 2000. Mark specializes in IRS procedures including the withholding requirements of the US Internal Revenue Code, and dispute resolution including transfer pricing and the negotiation of Advance Pricing Agreements. He leads the IRS Practice and Procedures group, and has provided tax and business advisory services to large and mid-size financial institutions, and high net worth individuals. Contribution includes chapter 26: Exchange of Tax Information and Impact of FATCA for the The British Virgin Islands.

Véronique Hoffeld, Esq. Véronique Hoffeld, attorney-at-law, is a member of the Management Committee of Loyens & Loeff Luxembourg and heads the Luxembourg Commercial and Litigation department.  She can be considered as a generalist lawyer, whose activities cover matters in the areas of commercial law (negotiation of contracts), litigation and arbitration, bankruptcy & restructuring, IP law, real estate law, environment law, E-commerce and new technologies. Véronique is also occasionally involved in maritime and administrative law matters.  Prior to joining Loyens & Loeff Luxembourg, Véronique worked for more than 10 years in another important Luxembourg law firm at which she was made partner in 2003. Véronique is a member of the Luxembourg Bar since 1996.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

Rob. H. Holt, Esq. Rob H. Holt is a practicing attorney of thirty years licensed in New York and Texas representing real estate investment companies, university professors, and a variety of other business owners in the formation of their entities, business contracts, and distribution and channel documentation. He is currently completing his LL.M. in Taxation from Thomas Jefferson School of Law. Rob and his wife of 29 years live in College Station/Bryan, Texas. He is an avid, amateur ballroom dancer and loves the waltz, foxtrot, and tango. Contribution includes chapter 7: Foreign Financial Institutions.

Rajul Jain Rajul Jain is Senior Manager at PricewaterhouseCoopers Pvt. Ltd, India (PwC). He has more than 11 years of  International professional experience which involves proactively leading global teams and providing Financial and Strategic analysis, advice on RBI and Regulatory frameworks,  Designing  Compliance frameworks, Project management  advice and performing Enterprise risk reviews. Contribution includes chapter 34 Exchange of Tax Information and Impact of FATCA for India.

Richard Kando, CPA  Richard Kando, a Certified Public Accountant (New York) is a Director at Navigant Consulting. Richard specializes in forensic accounting and compliance matters relating to Government investigations, anti-money laundering and the Foreign Account Tax Compliance Act (“FATCA”). Richard is a leader of Navigant’s FATCA task force. Previously, Richard served as a Special Agent with the IRS Criminal Investigation Division where he received the U.S. Department of Justice—Tax Division Assistant Attorney General’s Special Contribution Award. Contribution includes chapter 2: Practical Considerations for Developing a FATCA Compliance Program.

Denis Kleinfeld, Esq., CPA. Denis Kleinfeld is Of Counsel to Fuerst Ittleman David & Joseph, PL, in Miami, Florida and a Professor of Law of the LL.M. International Tax Program of Thomas Jefferson School of Law, San Diego, California. The author of chapters in prominent legal publications, he has written extensively in professional and general circulation magazines and publications on a wide variety of tax, insurance, estate planning, treaty planning, domestic and international asset protection, and investment issues as well as observations on relevant political, social and economic issues. Mr. Kleinfeld is the founder of, and now serves as co-chairman for, the Florida Annual Wealth Protection Conference and is a speaker at a wide variety of professional conferences, seminars, and symposiums in the United States and around the world. After obtaining his B.S. degree in Accountancy from the University of Illinois in 1967 and obtaining his license as a Certified Public Accountant, Mr. Kleinfeld enrolled at the Loyola University of Chicago School of Law, graduating in 1970. He was admitted to the Illinois Bar in 1970 and was employed as an attorney with the Internal Revenue Service in the Estate and Gift Tax Division for four years before going into private practice. Mr. Kleinfeld has been a member of the Florida Bar since 1983, and is also a member of the Florida Institute of Certified Public Accountants, the American Bar Association, and the American Institute of Certified Public Accountants. Contribution includes chapter 1: Introduction and chapter 5: FBAR & 8938 FATCA Reporting.

Richard L. Knickerbocker, Esq. Richard L. Knickerbocker is the senior partner in the Los Angeles office of the Knickerbocker Law Group. He is the former City Attorney of the City of Santa Monica. He was designated Super Lawyer five years running by Los Angeles magazine, made numerous television appearances and has extensive publications. He has taught law in various colleges and law schools and is a certified civil trial advocate and appellate specialist. He graduated from the University of Southern California Gould School of Law with both a J.D. and an LL.M. degree. Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Saloi Abou-Jaoude’ Knickerbocker  Saloi Abou-Jaoude’ Knickerbocker is a Legal Administrator in the Los Angeles office of the Knickerbocker Law Group. She holds LL.M. (Summa Cum Laude) in International Taxation and Financial Services has earned her J.D. (Summa Cum Laude). She has concentrated her practice and research on shari’a finance. She has published Shari’a Finance: Rapid Expansion With the Islamic Golden Age—Some International Taxation Implications in the TaxTalk Magazine (South Africa).  Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Shinjini Kumar Shinjini Kumar is Executive Director at PricewaterhouseCoopers Pvt. Ltd, India (PwC). She is the Sector leader for Banking and Capital Markets and also heads Financial Services regulatory practice at PwC India. Prior to joining PwC in 2010, Shinjini has held senior positions at the Reserve Bank of India (RBI) and Bank of America-Merill Lynch. Her vast experience with the regulator and industry gives her the distinctive opportunity to engage with the industry, media and policy makers on important issues affecting the industry. Contribution includes chapter 34 Exchange of Tax Information and Impact of FATCA for India.

Mathias M. Link, Esq., LL.M.  Mathias Link is a counsel in the Frankfurt office of Hengeler Mueller. He is qualified as German attorney-at-law and tax consultant, holds an LL.M. degree from Columbia University and is also admitted to the New York bar. He advises corporate clients, banks and financial services institutions on a variety of tax matters including mergers and acquisitions, reorganizations, finance and capital markets transactions. He has particular expertise in the structuring of private equity, real estate and investment fund transactions and his main focus is on international tax aspects. Mathias regularly advises clients on the implications of FATCA from a German law perspective.  Contribution includes chapter 19: Germany.-U.S. Intergovernmental Agreement and Its Implementation.

Jinghua Liu, JD Jinghua Liu is a partner in the Tax group at Baker & McKenzie and is based in the Beijing office. She heads the tax dispute resolution practice in China. She joined Baker & McKenzie in 2004 and has been practicing China tax law since then. She is a frequent speaker at international tax conferences on PRC taxation and international tax planning, and authored and co-authored various articles in leading tax publications. Chambers Asia Pacific lists her as one of the recommended lawyers for tax in 2011 and 2012.  Contribution includes chapter 29: Exchange of Tax Information and Impact of FATCA for China.

Jeffrey Locke, Esq. Jeffrey Locke is Director at Navigant Consulting. At Navigant, he is a leader of the FATCA Task Force and has drafted numerous white papers and articles concerning the practical implementation of FATCA. Prior to joining Navigant, he served as an assistant New York state attorney general in the Criminal Prosecutions Bureau, worked in the prosecutor’s office for the United Nations in Kosovo and was an assistant public defender in Philadelphia. He received his law degree from Columbia Law School. Mr. Locke recently contributed a chapter to the book “International Prosecutors” published by Oxford University Press. Contribution includes chapter 2: Practical Considerations for Developing a FATCA Compliance Program.

Josh Lom  Josh works at Herbert Smith Freehills LLP having graduated from Oxford University. Contributions include chapter 24: UK-U.S. Intergovernmental Agreement and Its Implementation.

Jason R. Miller  Jason R. Miller recently spent the summer as a stagier at PwC Istanbul working with Umurcan Gago to author several chapters on Turkey for Lexis publications.  He will graduate in 2014 from Thomas Jefferson School of Law with his Juris Doctorate specializing in Global Legal Studies and Business Law.  Jason has a BS in Business Administration from California Polytechnic State University, San Luis Obispo, with a concentration in Human Resources.  He has contributed to publications for LexisNexis and Wolters Kluwer, including chapters on Company Law, AML, FATCA, and Foreign Tax and Trade Briefs.  Jason is an Editor of the Thomas Jefferson Law Review.   Contribution includes: chapter 33 Exchange of Tax Information and the Impact of FATCA for Turkey.

Dr. Robert J. Munro Dr. Robert Munro is the author of 35 published books including Lexis’ three volume Tax Havens of the World, two volume Foreign Tax & Trade Briefs, and Money Laundering, Asset Forfeiture and Recovery, and Compliance—A Global Guide. He is a Professor of the International Tax & Financial Services Graduate Program of Thomas Jefferson School of Law, San Diego, California. A former Law Librarian at University of Florida College of Law, Dr. Munro was the Director of the Center for International Financial Crimes Studies at UF and continues as a Senior Research Fellow and Director of Research for North America of CIDOEC at Jesus College, Cambridge University, England. He has addressed audiences at Cambridge University, the University of Florida, the University of London, the CIA and the U.S. State Department and created, organized and chaired over twenty conferences in Miami, Aruba, Curacao, the Bahamas, Washington, D.C., New York City, Cambridge, England and San Francisco.

Rachel O’Toole  Rachel O’Toole BA, LL.B, BL, is a barrister-at-law licensed in Ireland and holds the Master of Laws, International Taxation & Financial Services (Thomas Jefferson School of Law, San Diego). She practices a wide range of civil litigation. Besides her role as trial advocate, her work includes advice in financial and debt related issues, planning law compliance, implementation and compliance of European environmental law, and construction and contract disputes. She is an accredited civil and commercial mediator. She has researched and presented papers on current and emerging areas of financial law and compliance facing practitioners in Ireland. Contribution includes Chapter 20: Ireland-U.S. Intergovernmental Agreement and Its Implementation.

Dr. Maji C. Rhee  Maji C. Rhee is a professor of Waseda University located in Tokyo, Japan where she teaches courses on language and legal communications. Rhee received her Ed.D. from Rutgers, her LL.M. in International Taxation & Financial Services from Thomas Jefferson School of Law and is currently finishing her J.S.D. dissertation on transfer pricing in Japan. Contribution includes chapter 21: Japan-U.S. Intergovernmental Agreement and Its Implementation.

Jean Richard, Esq. Jean Richard, a Canadian attorney, previously worked for the Quebec Tax Department, as a Senior Tax Manager with a large international accounting firm and as a Tax & Estate consultant for a pre-eminent Canadian insurance company. He is currently the Vice President and Sr. Wealth Management Consultant of the BMO Financial Group. He completed a LL.L. at University of Montreal, was admitted to the Quebec Bar Association in 1981. He also completed the Canadian ‘In Depth Tax Course’ (Canadian Institute of Chartered Accountant), a Master in International Taxation with the Australian School of Taxation (ATAX), University of New South Wale, Sydney, Australia and a LL.M. in International Tax and Financial Services (International Taxation) with the Thomas Jefferson School of Law. He is a licensed financial planner and financial security advisor.  Contribution includes chapter 27: Exchange of Tax Information and Impact of FATCA for Canada.

Michael J. Rinaldi, II, CPA.  Mr. Rinaldi represents U.S. and foreign institutions and families in a broad range of advisory activities including private equity real estate opportunity funds, with regard to formation, acquisitions, operations, dispositions and development of significant properties and portfolios. He is a Professor in the graduate international tax law program at Thomas Jefferson School of Law, where he teaches on Trusts, Private Equity Funds and Tax Treaties. Professor Rinaldi has authored several publications for Kluwer Law International, Jordan’s and LexisNexis. He is licensed as a certified public accountant in the District of Columbia and is a member of the International Tax Planning Association (ITPA), the Society of Trust and Estate Practitioners (STEP) and the American Bar Association, Tax Section-Partnership and US Activities of Foreigners & Tax Treaties Committees. He holds graduate degrees in accounting and tax law (both US and International). Contributions includes chapter 6: Determining U.S. Ownership Under FATCA; chapter 7: Foreign Financial Institutions; and chapter 8: Non-Financial Foreign Entities.

Edgardo Santiago-Torres, Esq. Edgardo Santiago-Torres is an attorney at law, principal of Santiago Law Group, LLC, and of counsel of the Knickerbocker Law Group, representing individuals and entities in corporate, taxation, and estate planning litigation. Mr. Santiago is also a Certified Public Accountant and a Chartered Global Management Accountant, pursuant to the AICPA and CIMA rules and regulations, admitted by the Puerto Rico Board of Accountancy to practice Public Accounting in Puerto Rico. He holds an LL.M. in International Taxation and Financial Services (highest honors) and a Juris Doctor (honors) of the University of Puerto Rico School of Law.  Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Hope M. Shoulders, Esq.  Hope M. Shoulders is a licensed attorney in the State of New Jersey. She is currently consulting for a major insurance company assisting with their implementation of FATCA. She is also an adjunct professor for the Thomas Jefferson School of Law. She  previously worked for General Motors, National Transportation Safety Board and the Department of Commerce. She completed her LL.M. in International Taxation from Thomas Jefferson School of Law in San Diego, California. She is a contributor of numerous articles and completed her thesis on OECD transfer pricing and business restructuring. She earned her J.D. and her MBA from the University of Tennessee and a Bachelors of Science from the University of Virginia. Contribution includes chapter 10: FATCA and the Insurance Industry.

Jason Simpson, LL.M., CRA, CCA  Jason Simpson is the Director of the Miami office for Global Atlantic Partners, overseeing all operations in Florida, the Caribbean and most of Latin America. He has worked previously as a bank compliance employee and advisor at various large and mid-sized financial institutions over the past ten years. He has been a key component in the removal of Cease and Desist Orders as well as other written regulatory agreements within a number of Domestic and International Banks, and designed complete AML/BSA units for domestic as well as international banks with over ten million accounts. He is an Adjunct Faculty Member of Thomas Jefferson School of Law for Compliance, AML and Fraud, where he holds a Master of Laws in International Taxation with a concentration specialized in Anti-Money Laundering, Anti-Terrorist Financing and Compliance. Through various online venues, he creates and teaches specialized webinars in both English and Spanish focused compliance. Contribution includes chapter 3: FATCA Compliance and Integration of Information Technology; and chapter 4: Financial Institution Account Remediation.

Dr. Alberto Gil Soriano, Esq. Alberto Gil Soriano is a Spanish attorney who holds a Ph.D. in Tax Law at University of Bologna (Italy), LL.M. in International Taxation and Financial Services at Thomas Jefferson School of Law in San Diego (California) and is Law degree from the University of Valencia (Spain). He has worked at the University of Valencia, at the European Commission’s Anti-Fraud Office in Brussels, and most recently at the Legal Department of the International Monetary Fund’s Financial Integrity Group in Washington, D.C. He currently works at the Fiscal Department of Uría Menéndez Abogados, S.L.P in Barcelona (Spain). Contributions include chapter 1: Introduction and chapter 15: Framework of Intergovernmental Agreements.

Krisztina Szombathy, Esq.  Krisztina Szombathy joined the Commercial & Litigation Department of Loyens & Loeff Luxembourg in October 2013.  She specializes in dispute resolution, and advises on commercial and civil law. Her areas of expertise also include European law, energy law and intellectual property. Before joining Loyens & Loeff, Krisztina acquired experience in legal drafting, notably in European and energy law matters during an internship at the European Court of Justice in Luxembourg.  Krisztina has been a member of the Luxembourg Bar since spring 2013.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

Debora de Souza Correa Talutto  Debora de Souza Correa Talutto is the International Transfer Pricing Manager at Temenos Banking Software Co., and a professor of international transfer pricing at Thomas Jefferson School of Law International Tax graduate program.  She is a sought after Brazilian tax authority, having authored the Brazilian chapter of LexisNexis’ Foreign Tax and Trade Briefs, the Brazilian chapter of Lexis’ Anti Money Laundering, Asset Forfeiture, & Recovery Guide, and most recently the Cost Sharing Arrangement chapter of Lexis’ Practical Guide to U.S. Transfer Pricing.    Ms. Talutto previously served as a tax consultant at Deloitte (Brazil) before earning her LL.M. in International Tax from University of Florida.  She holds an MBA, an LL.B. (Brazil), as well as a post-graduate degree in Brazilian taxation.  Contributions include chapter 25: Exchange of Tax Information and Impact of FATCA for Brazil.

Andrey Tereschenko, Esq.  Andrey Tereschenko is a tax partner in the Moscow office of Pepeliaev Group LLC. He focuses on tax law and has a high level of expertise in providing advice to major Russian and foreign companies on a wide range of tax issues but especially the implementation of compensation tax arrangements. Andrey has participated in projects to set up businesses in Russia, including assessment of the tax environment in the chosen business region, investment agreements with regional authorities and tax support for due diligence. Andrey has been directly involved in tax structuring of investment projects, particularly in the sphere of construction, land and real estate acquisition. Contributions include chapter 32: Exchange of Tax Information and Impact of FATCA for Russia.

Lily L. Tse, CPA.  Ms. Tse, a partner of Rinaldi & Associates (Washington, D.C.), represents US and foreign real estate private equity funds and property owners with regard to financial reporting and international tax matters. Her area of practice includes real estate development and leasing, joint ventures, consolidations and mezzanine financing. She has significant experience in U.S. withholding issues effecting foreign partnerships and trusts. Ms. Tse also heads the firm’s audit practice specializing in the development and operation of multi-family housing. Ms. Tse has been qualified as an expert witness in Federal Court, providing testimony in the area of real estate financing. Ms. Tse is licensed as a certified public accountant in the District of Columbia and holds graduate degrees in business and taxation. Contributions include chapter 7: Foreign Financial Institutions.

Dr. Oliver Untersander, Esq.  Oliver Untersander obtained his law degree and his PhD from the University of Zurich. Her holds a LL.M. from the New York University (international tax) and is admitted to the bar in Zurich (Switzerland). He is partner at Tappolet & Partner in Zurich. He is experienced in Swiss and international corporate taxation, corporate reorganizations and tax litigation. Contribution includes chapter 23: Switzerland-U.S. Intergovernmental Agreement and Its Implementation.

Mauricio Cano del Valle, Esq.  Mauricio Cano del Valle is a Mexican attorney who has previously worked for the Mexican Ministry of Finance (Secretaría de Hacienda),  Deloitte Mexico and the Amicorp Group. He is the founding partner of Brook & Cano SC, a Mexican boutique Law Firm, specializing on private clients, HNWI, UHNWI, their families and their businesses. Mauricio has been a professor at both the undergraduate and the graduate level at ITAM, the author of the book “Game Theory and Tax Evasion” published in Mexico in 2006, and the most recently published paper on “Game Theory and Minimum Taxes” included as part of a book on “Game Theory and Contemporary Law” published in Mexico in 2009. He holds a Law Degree, a Masters Degree in Law and Economics, and an MBA. Contribution includes chapter 22: Mexico-U.S. Intergovernmental Agreement and Its Implementation.

Janneke Versantvoort  Janneke Versantvoort is an international tax specialist and a member of the general tax practice at Loyens & Loeff Luxembourg. She is specialized in international tax law, focusing on advising multinational clients on cross-border transactions, group restructurings, project financing and transfer pricing. She worked for three years at the Loyens & Loeff Rotterdam office and is seconded to the Luxembourg office for two years.  Janneke is a member of the Dutch Association of Tax Advisers (NOB) and a member of the Young IFA in Luxembourg.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

John Walker, Esq.  John M. Walker, Esq., LL.M., is an international tax attorney who earned his LL.M. in International Taxation and Financial Services. He focuses on international tax compliance for high-net worth individuals as well as foreign trust compliance and structuring under the Foreign Account Tax Compliance Act (FATCA). He is Of Counsel to Duke Law Firm, P.C., and Michael Rinaldi & Co, LLP . Contributions include chapter 6: Determining U.S. Ownership Under FATCA, chapter 12: FATCA Withholding Compliance, chapter 13: “Withholdable” Payments Under FATCA, and chapter 14: Determining and Documenting the Payee.

Prof. Bruce Zagaris, Esq.  Bruce Zagaris is a partner at the Washington, D.C. law firm Berliner, Corcoran & Rowe, LLP, where he practices tax controversy and international criminal law, including representing individuals on voluntary disclosures, audits, and litigation as well as consulting and serving as an expert witness. He represents foreign governments, including helping negotiate treaties. He is an adjunct law professor of the LL.M. in International Taxation and Financial Services at Thomas Jefferson School of Law in San Diego. Mr. Zagaris is founder and editor of the International Enforcement Law Reporter (www.ielr.com). He is the author of International White Collar Crime (Cambridge U. Press 2010). Contribution includes chapter 15: Analysis of Current Intergovernmental Agreements.

Qiguang (Hardy) Zhou, LL.M., CPA  Qiguang (Hardy) Zhou works in the Tax group at Baker & McKenzie and is based in the Shanghai office. He obtained an LL.M. in International Tax Law. Contribution includes chapter 29: Exchange of Tax Information and Impact of FATCA for China.

Chapter 1 Background and Current Status of FATCA
Chapter 2 Practical Considerations for Developing a FATCA Compliance Program
Chapter 3 FATCA Compliance and Integration of Information Technology
Chapter 4 Financial Institution Account Remediation
Chapter 5 FBAR and Form 8938 Reporting and List of International Taxpayer IRS Forms
Chapter 6 Determining U.S. Ownership of Foreign Entities
Chapter 7 Foreign Financial Institutions
Chapter 8 Non-Financial Foreign Entities
Chapter 9 FATCA and the Offshore Trust Industry
Chapter 10 FATCA and the Insurance Industry
Chapter 11 Withholding and Qualified Intermediary
Chapter 12 FATCA Withholding Compliance
Chapter 13 ”Withholdable” Payments
Chapter 14 Determining and Documenting the Payee
Chapter 15 Framework of Intergovernmental Agreements
Chapter 16 Analysis of Current Intergovernmental Agreements
Chapter 17 European Union Cross Border Information Reporting
Chapter 18 The OECD Role in Exchange of Information: The Trace Project, FATCA, and Beyond
Chapter 19 Germany-U.S. Intergovernmental Agreement and its Implementation
Chapter 20 Ireland-U.S. Intergovernmental Agreement and its Implementation
Chapter 21 Japan-U.S. Intergovernmental Agreement and its Implementation
Chapter 22 Mexico-U.S. Intergovernmental Agreement and its Implementation
Chapter 23 Switzerland-U.S. Intergovernmental Agreement and its Implementation
Chapter 24 The United Kingdom-U.S. Intergovernmental Agreement and its Implementation
Chapter 25 Exchange of Tax Information and the Impact of FATCA for Brazil
Chapter 26 Exchange of Tax Information and the Impact of FATCA for The British Virgin Islands
Chapter 27 Exchange of Tax Information and the Impact of FATCA for Canada
Chapter 28 Exchange of Tax Information and the Impact of FATCA for Spain
Chapter 29 Exchange of Tax Information and the Impact of FATCA for China
Chapter 30 Exchange of Tax Information and the Impact of FATCA for Netherlands
Chapter 31 Exchange of Tax Information and the Impact of FATCA for Luxembourg
Chapter 32 Exchange of Tax Information and the Impact of FATCA for Russia
Chapter 33 Exchange of Tax Information and the Impact of FATCA for Turkey
Chapter 34 Exchange of Tax Information and the Impact of FATCA for India

On February 20, 2014 the IRS issued many changes to the FATCA Final Regulations via newly released Temporary Regulations.  These temporary regulations reflect changes made to the final regulations to coordinate the chapter 4 regulations with the temporary regulations published under chapters 3 and 61 and section 3406 of the Code  modifications to the final regulations to further harmonize them with the IGAs.  Several of the changes made by these temporary regulations were previewed in Notice 2013-69, the draft FFI agreement, and certain of the draft IRS forms released throughout 2013.

Attached I have highlighted the significant FATCA changes from the 229 page document:  Highlighted FATCA Changes 2-20-14

For previous analysis of FATCA updates, see my blog articles: https://profwilliambyrnes.com/category/fatca/ and LexisNexis Guide to FATCA Compliance

Below I simply include the FATCA sections that have been changed.

II. Comments and Changes to §1.1471-1–Scope of Chapter 4 and Definitions

A. Direct reporting NFFE, sponsored direct reporting NFFE, and sponsoring entity

B. Excepted NFFE

C. Offshore obligation and offshore account

D. Pre-FATCA Form W-8

E. Standardized industry coding system

F. Certain foreign insurance companies treated as U.S. persons

G. Coordination of definitions

The temporary regulations add definitions of:

• backup withholding,
• branch,
• chapter 4 withholding rate pool,
• exempt recipient,
• IGA, non-exempt recipient,
• reportable payment, and
• reporting Model 2 FFI.

These regulations modify the definition of a U.S. branch treated as a U.S. person. In addition, the definitions of financial institution, limited branch, limited FFI, and substantial U.S. owner are modified to ensure coordination between the FFI agreement and these temporary regulations.

H. Harmonization with IGAs

III. Comments and Changes to §1.1471-2–Requirement to Deduct and Withhold Tax on Withholdable Payments to Certain FFIs

A. Grandfathered obligations–definitions–material modification

B. Grandfathered obligations–determination by withholding agent of grandfathered treatment

IV. Comments and Changes to §1.1471-3–Identification of Payee

A. Payee defined

1. Exceptions–U.S. Intermediary or Agent of a Foreign Person

2. Exceptions–U.S. Branch of Certain Foreign Banks or Foreign Insurance Companies

B. Determination of payee’s status–determination of whether the payment is made to a QI, WP, or WT

C. Rules for reliably associating a payment with a withholding certificate or other appropriate documentation

1. Requirements for Validity of Certificates–Withholding Certificate of an Intermediary, Flow-Through Entity, or U.S. Branch (Form W-8IMY)–In General

2. Requirements for Validity of Certificates–Withholding Certificate of an Intermediary, Flow-Through Entity, or U.S. Branch (Form W-8IMY)–Withholding Statement–Special Requirements for an FFI Withholding Statement

3. Requirements for Validity of Certificates–Withholding Certificate of an Intermediary, Flow-Through Entity, or U.S. Branch (Form W-8IMY)–Withholding Statement–Special Requirements for a Chapter 4 Withholding Statement and Exempt Beneficial Owner Withholding Statement

4. Applicable Rules for Withholding Certificates, Written Statements, and Documentary Evidence–Period of Validity

5. Applicable Rules for Withholding Certificates, Written Statements, and Documentary Evidence–Electronic Transmission of Withholding Certificate, Written Statement, and Documentary Evidence

6. Applicable Rules for Withholding Certificates, Written Statements, and Documentary Evidence–Acceptable Substitute Withholding Certificate–Non-IRS Form for Individuals

7. Documentation Furnished on Account-by-Account Basis unless Exception Provided for Sharing Documentation within Expanded Affiliated Group–Preexisting Account

D. Documentation requirements to establish payee’s chapter 4 status

1. Reliance on Pre-FATCA Form W-8

2. Identification of U.S. Persons–In General

3. Identification of U.S. Persons–Preexisting Obligations

4. Identification4. Identification of Participating FFIs and Registered Deemed-Compliant FFIs

5. Identification of Excepted NFFEs–Identifying a Direct Reporting NFFE, Identifying a Sponsored Direct Reporting NFFE, and Identification of an Excepted Inter-Affiliate FFI

E. Standards of knowledge

1. GIIN Verification

2. Reason to Know

F. Presumptions regarding chapter 4 status of the person receiving the payment in the absence of documentation

V. Comments and Changes to §1.1471-4–FFI Agreement

A. Withholding requirements

1. Satisfaction of Withholding Requirements–Election to Withhold under Section 3406

2. Special Rule for Dormant Accounts

B. Due diligence for the identification and documentation of account holders and payees

1. Identification and Documentation Procedure for Preexisting Individual Accounts–Specific Identification and Documentation Procedures for Preexisting Individual Accounts–U.S. Indicia and Relevant Documentation Rules–Documentation to be Retained upon Identifying U.S. Indicia–Standing Instructions to Pay Amounts

2. Identification and Documentation Procedure for Preexisting Individual Accounts– Specific Identification and Documentation Procedures for Preexisting Individual Accounts–Exception for Preexisting Individual Accounts Previously Documented as Held by Foreign Individuals

C. Account reporting

1. Reporting Requirements In General–Financial Institution Required to Report an Account–Special Reporting of Account Holders of Territory Financial Institutions

2. Reporting Requirements In General–Financial Institution Required to Report an Account–Requirement to Identify the GIIN of a Branch that Maintains an Account

3. Reporting Requirements In General–Financial Institution Required to Report an Account–Reporting by Participating FFIs and Registered Deemed-Compliant FFIs (including QIs, WPs, WTs, and Certain U.S. Branches Not Treated as U.S. Persons) for Accounts of Nonparticipating FFIs (Transitional)

4. Reporting Requirements In General–Special U.S. Account Reporting Rules for U.S. Payors–Special Reporting Rule for U.S. Payors Other Than U.S. Branches

5. Reporting Requirements in General–Special U.S. Account Reporting Rules for U.S. Payors–Special Reporting Rules for U.S. Branches Not Treated as U.S. Persons

6. Reporting on Recalcitrant Account Holders–Extensions in Filing

7. Treatment of a Disregarded Entity

D. Expanded affiliated group requirements

E. Verification–IRS review of compliance

F. Event of default

VI. Comments and Changes to §1.1471-5–Definitions Applicable to Section 1471

A. U.S. accounts–account holder–in general; grantor trust

B. Financial accounts–value of interest determined, directly or indirectly, primarily by reference to assets that give rise (or could give rise) to withholdable payments, and return earned on the interest (including upon a sale, exchange, or redemption) determined, directly or indirectly, primarily by reference to one or more investment entities or passive NFFEs

C. Definition of financial institution

1. In General

2. Holding Financial Assets for Others as a Substantial Portion of its Business–Income Attributable to Holding Financial Assets and Related Financial Services

3. Investment Entity—Examples

 4. Exclusions–Excepted Nonfinancial Group Entities–In General

5. Exclusions–Excepted Nonfinancial Group Entities–Nonfinancial Group

6. Exclusions–Excepted Nonfinancial Group Entities–Holding Company

7. Exclusions–Excepted Nonfinancial Group Entities–Treasury Center

8. Exclusions–Excepted Inter-Affiliate FFI

D. Deemed-compliant FFIs

1. Registered Deemed-Compliant FFIs–Restricted Funds

2. Registered Deemed-Compliant FFIs–Qualified Credit Card Issuers and Servicers

3. Registered Deemed-Compliant FFIs–Sponsored Investment Entities and Controlled Foreign Corporations

4. Certified Deemed-Compliant FFIs–Nonregistering Local Bank

5. Certified Deemed-Compliant FFIs–Limited Life Debt Investment Entities (Transitional)

6. Certified Deemed-Compliant FFIs–Investment Advisors and Investment Managers

7. Related Persons

E. Expanded affiliated group

VII. Comments and Changes to Section 1.1471-6–Payments Beneficially Owned by Exempt Beneficial Owners–Foreign Central Bank of Issue

VIII. Comments and Changes to Section 1.1472-1–Withholding on NFFEs

A. Exceptions–payments to an excepted NFFE–active NFFEs

B. Exceptions–payments made to an excepted NFFE

C. Exceptions–payments to an excepted NFFE–direct reporting NFFEs and sponsored direct reporting NFFEs

IX. Changes and Comments to §1.1473-1–Section 1473 Definitions

A. Definition of withholdable payment– U.S. source FDAP income defined–special rule for sales of interest bearing debt obligations; gross proceeds defined–payment of gross proceeds–amount of gross proceeds

B. Definition of withholdable payment–payments not treated as withholdable payments–offshore payments of U.S. source FDAP income prior to 2017 (transitional)

1. In General

2. Insurance Brokers

C. Definition of withholdable payment–payments not treated as withholdable payments–collateral arrangements prior to 2017 (transitional)

D. Substantial U.S. owner–indirect ownership of foreign entities–interests owned or held by a related person

X. Changes and Comments to §1.1474-1–Liability for Withheld Tax and Withholding Agent Reporting

A. Information returns for payment reporting–filing requirement–in general

B. Information returns for payment reporting–filing requirement–recipient–defined; persons that are not recipients

C. Information returns for payment reporting–amounts subject to reporting–in general

D. Information returns for payment reporting–method of reporting–payments by U.S. withholding agents to recipients–payments to participating FFIs, deemed-compliant FFIs, and certain QIs

XII. Future Guidance

A. Verification requirements of sponsoring entities

B. FFI agreement

The 229 pages of changes and explanation of the changes to the FATCA Final Regulations is available at http://www.irs.gov/Businesses/Corporations/Additional-FATCA-Guidance-Submitted-for-Publication

LexisNexis FATCA Compliance Manual

Fifty contributing authors from the professional and financial industry provide 600 pages of expert analysis within the LexisNexis® Guide to FATCA Compliance (2^nd Edition): many perspectives – one voice crafted by the primary author William Byrnes.

The LexisNexis® Guide to FATCA Compliance (2^nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of FATCA’s application for certain trading partners of the U.S. (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems. The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA.  Chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters.