Showing posts from July, 2014

Forget #FATCA. The Currency Wars Continue.

Everywhere I look people are complaining about FATCA and painting the US government as some evil empire out to bully poor innocent American expats and foreign financial institutions.  Like many observers, I read predictions of FATCA leading to a mass exodus of Americans and accelerating a global shift away from the US dollar.  Well FATCA officially kicked in on July 1st and the world has not come to an end.  Not yet anyway. 
What strikes me most is the way so much of the discourse around FATCA fails to put these laws and regulations into any wider sociopolitical or even geopolitical context.  I was talking to a US tax attorney last month and she did not see any real connection between FATCA and the OECD’s Tax Information Exchange Agreements.  FATCA was a rider to the 2010 HIRE Act but the OECDs model tax information exchange agreement dates back to at least 2002!! 
According to the OECD’s website, the purpose of the model agreement is to promote international co-operation in tax matte…