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Honduras Joins Piers, Will Release Financial Information to USA

Article Summary:

Americans living in Honduras who do banking in the country will be reported to the United States of America. Honduran bankers will meet this month to discuss the implementation of The Law on Foreign Account Tax Compliance (FATCA). The main objective is to review FATCA information on stocks, investments and accounts with U.S. persons with foreign financial institutions. The purpose of FATCA is to increase the scope of audit, including that of American taxpayers who are located abroad, to strategically combat tax evasion.

Original Article Text From Revista Summa via Google Translate :

Honduran law Bankers discuss U.S. tax compliance
The Law on Foreign Account Tax Compliance (FATCA, for its acronym in English), approved by the U.S. government in March 2010, will be the subject of analysis of the Honduran banking.

To that end, the international auditing firm Deloitte and the Honduran Association of Banking Institutions (AHIBA) have scheduled a meeting for Dec. 14 in Tegucigalpa.

The main objective is to relieve FATCA information on stocks, investments and accounts with U.S. persons with foreign financial institutions. The purpose of FATCA is to increase the scope of audit, including the American taxpayers who are located abroad, to strategically combat tax evasion.

In other words, the Law on Foreign Account Tax Compliance seeks to identify U.S. citizens and residents who have money abroad and where they do, through the collaboration of financial institutions shall report relevant information to the Treasury of the United States. Thus, the IRS will validate whether the taxpayer is claiming the right thing or not.

Rita Silva, chief executive of Deloitte Honduras, said the law requires that all entities classified as foreign financial institutions and non-financial foreign entities agree to all its account documentation or foreign owners and implement agreements with the IRS reporting from the first in July 2013.

However, the application deadline for the agreement is January 1, 2013. To all those entities that do not comply with these provisions will impose a 30% withholding on all payments subject to withholding, such as interest, dividends and cancellations receive U.S. source.

These provisions cover all types of entities: banks, securities brokers and middlemen, all forms of collective investment vehicles, including mutual funds, hedge funds and private equity, collateralized debt obligations and other stock vehicles as well as certain insurance companies.

According to counsel Silva, “to comply with the provisions of FATCA is necessary for each entity subject to its regulation implement a plan of implementation and compliance in determining which policies could be defined to evaluate systems and compliance processes and staff training, while continuous processes are determined reporting, testing and monitoring directly connected with the survey of information systems and electronic platforms IRS to carry out the purpose of the law. ”

To address the issue were invited to Enrique Rojas, Deloitte Tax Manager Costa Rica, who will discuss the application of FATCA and its interference in the Honduran financial system entities.

Link to Original Article:

From Revista Summa

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