Key observations from HM Treasury and HMRC’s release of the International Tax Compliance (United States of America) Regulations 2013 to improve international tax compliance and implement FATCA.
On August 7, 2013, HM Treasury and HMRC laid the International Tax Compliance (United States of America) Regulations 2013 (“UK Regulations”) before the UK House of Commons. The UK Regulations will bring the Agreement between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland to Improve International Tax Compliance and Implement FATCA (“the Treaty”) into UK law.
The UK Regulations are required to lay before the UK House of Commons for 21 days and are scheduled to come into force with effect on September 1, 2013.
The UK Regulations align the timelines for implementing various provisions under FATCA with the revised timelines set out in Notice 2013-43 issued by the Internal Revenue Service (“IRS”) and the US Department of the Treasury (“Treasury”) on July 12, 2013 (“the Notice”). The UK Regulations also provide clarifications in respect of the definition of a UK reporting financial institution (“Reporting UK FI”).
This Newsbrief identifies key changes and certain additions from the proposed UK Regulations which were released in May 2013.