FATCA: key issues for legal professionals

FATCA: key issues for legal professionals

What are the key issues for legal professionals in relation to FATCA?

The key issues for lawyers are two-fold. Firstly, they need to look carefully at any trusts they advise on to determine the status of the trust under the Model 1 intergovernmental agreement (IGA) that the UK has signed for FATCA purposes. They also need to look closely at their own practices, particularly if the firm they are working for has, for example, established a corporate trustee to act as trustee for a client. They will need to determine if that needs to register as a financial institution under FATCA.

What are the most imminent dangers posed by FATCA for professionals?

The deadlines are becoming very pressing. We think that by the end of October 2014 any entity that needs to register as a result of FATCA needs to have done that. Both American and UK tax authorities have indicated that for first 18 months they will operate on the basis that if things have gone slightly wrong then they will be lenient, but it is still putting you at risk of being in breach of UK tax law if you have not fulfilled your obligations. They then need to make sure that they have the systems in place to ensure they can meet the reporting deadlines whic

Subscription Form

Related Articles:
Latest Articles:

Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login

About the author: