An IGA is an agreement designed to facilitate the exchange of data between an FFI and the IRS by providing advantages such as relaxed deadlines and increased clarity and simplicity around due diligence, with country specific provisions.
A Model 1 IGA, which is held by the majority of compliant countries including the UK and its crown dependencies, requires an FFI to provide US information to its government’s local revenue authority by 30 September 2015.
Zimiles said the initial outrage that surrounded the global nature of FATCA was unjustified, adding that the IRS is not pursuing people as aggressively as many media reports have suggested.
Spread
“A lot of people were initially outraged by FATCA, but what we can see now is that the US’ approach to retrieving tax has spread to other countries. For example, the UK’s agreement with its crown dependencies requiring the automatic exchange of information,” she said.
“It is not a case of the IRS sitting there waiting to pounce on any country that has struggled to comply immediately following the reporting deadline, after all, it has repeatedly stressed it willingness to assist with compliance.
“What people outside of the US may forget is that the IRS has other large issues to address such as the use of tax returns for identity fraud.”
Navigant is a specialised, global professional services firm dedicated to “assisting clients in creating and protecting value in the face of critical business risks and opportunities”.
It offers financial management services, investigation services, litigation support services, and business management consulting services.
