Republican lawmakers to file bill calling for FATCA repeal

Published:  7 Apr at 6 PM
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Tagged: USA, South Africa
Two republican lawmakers are about to present a bill calling for the unpopular FATCA tax reporting law’s repeal.

USA lawmakers have scheduled a first hearing on April 26 for a bill requesting the repeal of the controversial and much-disliked FATCA legislation. Republican anti-FATCA campaigners Senator Rand Paul and Representative Mark Meadows are determined to end the chaos caused to USA expats and overseas financial institutions since the unpopular legislation was introduced.

Should the house vote for repeal, the FATCA legislation underpinning the Internal Revenue Service’s links with foreign governments will be a thing of the past. In a letter to the newly-appointed Treasury Secretary Steven Mnuchin, the two lawmakers are urging his support for the repeal, saying its introduction represented an abuse of executive power on the part of former President Obama.

Experts claim FATCA’s continuing operation rests on unauthorised agreements between the US and world governments and is therefore able to be challenged and overturned via a debate and vote in the House of Representatives. The campaign to get rid of the damaging legislation has been ongoing in Washington for some time, with President Trump also mentioning a possible repeal during his campaign.

The letter suggests Mnuchin should consider four options, with the first requesting a Statement of Administration Policy which confirms the present administration’s intention to repeal the law as stated in the Republican Platform. The second recommends instructions be sent to the Treasury Department ordering it to stop negotiations as well as the signing of an implementation of IGAs.

The third recommends an announcement stating IGAs are under legal review and, should they be found to be infirm under the law, they can be declared invalid. The fourth option is that FATCA agrees to give the Treasury Secretary the authority to recognise all foreign financial organisations at present impacted by its rulings as being temporarily compliant until the outcome of an IGA legal review is published. In addition, the IRS should be instructed to roll back on the enforcement of provisions already impacting individual US expat taxpayers.

Source: iExpats
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