...Foreign Account Tax Compliance Act (FATCA) Overcoming challenges relating to operational implementation Editorial In March last year, the US President signed the HIRE Act, thus paving the way for the implementation of the Foreign Account Tax Compliance Act (FATCA). In our first brochure “Mastering the challenges of the new US regulations”, we presented the fundamental considerations which were necessary following the introduction of the FATCA regulations. We also explained how FATCA works, and how participating foreign financial institutions (“participating FFIs”) will be affected as from 2013. Because the text of the HIRE Act functions within the meaning of a framework legislation and the specific guidance are still to be drawn up that there is considerable uncertainty among financial intermediaries. The focus is particularly on the question of whether or not a financial service provider consitutes an FFI as defined under the FATCA regulations and must make appropriate analysis. On the other hand, there are the issues of identifying customer and US accounts and the treatment of withholdable payments. Finally, there also appears to be widespread uncertainty concerning the question of what – if any – alternative strategic options an FFI has. The US Internal Revenue Service (IRS) shed some light on this issue by releasing Revenue Notice 2010–60. This notice deals in particular detail with the issues concerning the identification of customers and US accounts as well as the...
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...on this line; do not leave this line blank. 2 Business name/disregarded entity name, if different from above 3 Check appropriate box for federal tax classification; check only one of the following seven boxes: C Corporation S Corporation Partnership Trust/estate Individual/sole proprietor or single-member LLC Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=partnership) ▶ Note. For a single-member LLC that is disregarded, do not check LLC; check the appropriate box in the line above for the tax classification of the single-member owner. 4 Exemptions (codes apply only to certain entities, not individuals; see instructions on page 3): Exempt payee code (if any) Exemption from FATCA reporting code (if any) (Applies to accounts maintained outside the U.S.) Other (see instructions) ▶ 5 Address (number, street, and apt. or suite no.) Requester’s name and address (optional) 6 City, state, and ZIP code 7 List account number(s) here (optional) Part I Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid backup withholding. For individuals, this is generally your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN...
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...EXCHANGE ON INFORMATION AND ITS AD 1. BRIEF OVERVIEW ON NEED OF EXCHANGE OF INFORMATION & ITS MEANING: 1.1 With the increase in cross border transactions in the era of globalised world there has been increase in the number of cases tax evasion & avoidance. The problem of tax evasion in developing countries is therefore exacerbated, where evasion even by a wealthy few can have a comparatively large impact. The revenue needs of developing countries, in combination with the severity of corruption, tax evasion and fraud in many developing countries, highlight the importance of increasing global transparency concerning the location of untaxed wealth. Globalization and the liberalization of economic activity, resulting in the exponential increase in cross border commercial and financial transactions, has in effect converted the private sector into a world without borders. This has created a major problem for national tax authorities because globalization in the private sector has not been accompanied by similar changes in the reach and enforcement powers of national tax authorities. 1.2 In confronting the impact of globalization and liberalization of economies, national tax authorities face several problems. Some of them are...
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...Farooq Shah Business Accounting 1/14/13 The informative thoughts expressed in FATCA: A new era of financial transparency about privacy, oversea accounts and the new federal income tax laws are ones that I do not agree with. I don’t agree that we as Americans can work hard for our monies only to not have the privacy and courtesy to invest the way we choose wherever we choose. Under the FATCA act it requires all foreign financial institutions to give the US Internal Revenue Service information about financial accounts held by US taxpayers. Foreign financial institutions will be required to enter into a disclosure agreement with the US tax authorities to report on its US accounts if a foreign institution does not enter into an agreement with the IRS or comply with FATCA, all relevant US sourced payments, such as dividend and interest paid by US corporations, will be subject to a 30 per cent withholding tax. Banks are in the business of providing financial and investment services to its clients. All banks have a duty of care to their customers to treat their sensitive personal information with confidentiality, and to prevent its disclosure to any unauthorized people. This breach of duty occurred through the negligence of the bank or its employees, for whom the bank is ultimately liable. In this case the US government is forcibly attaining information. With this new act in place it will make it very hard to do global business as well as it will give a perspective of American...
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...necessary for the United States to continue to monitor and implement laws to improve financial transparency globally in order to curtail tax evasion in addition, the integrity of the federal income tax system continues to be tested by individuals and entities in their attempts to defraud the United States Government. The United States Treasury, IRS, and Congress took a long hard look at the global financial system and determined that UBS, the Swiss bank giant sold tax evasion services to those who did not want to pay their taxes (http: www.nytimes.com/reuters/2011/08/19/business). A new law signed by President Barak Obama in March of 2010, the Foreign Account Tax Compliance Act (FATCA), which goes into effect January 1, 2014, is meant to expose billions of dollars in offshore tax evasion. FATCA is an instrument where foreign banks must spend millions of dollars to help the U.S. enforce its own tax law....
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...skills *Good Computer skills *Maintain program registers, data card and files * Excellent customer service Technical Qualifications: *Familiar with all financial and accounting terms * Specialised in Marketing and Sales. Personal Qualities: *Ability to work well as a team or autonomously *Good leadership abilities *Punctual and good attendance *Hardworking, honest and persevering ------------------------------------------------- QUALIFICATION & PROFESSIONAL DEVELOPMENT: *Passed Secondary School certificate 2005 – 89% *Bachelors in Business management – Specialised in Marketing and sales – 2008 - 65% *Master’s in Business Administration – Deakin University *FATCA and other regulations trained specialist Certificate Courses: Food Safety Handling -2015 Responsible Gambling Services - 2015 Responsible service of Alcohol - 2015 ------------------------------------------------- EMPLOYMENT HISTORY: 2008 - 2010 Worked as a Financial Analyst – ANZ Bank 2011 - 2012 Worked as Customer relationship officer – Diners Club Cards 2012 - 2015 Worked as Senior Associate KYC AML – HSBC Bank 2015 – Date Working at Fosberry Food Co as Cashier, Barista & Store...
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...Investment Funds in Poland The Polish experience – Regulatory, Political ans Economic Aspects Brussels, 8th November 2012 Leszek Jedlecki, Chairman of the Board of Chamber IZFiA President of the ING TFI 1. Development of the Polish market • Saving structure • Market leaders • Home bias • Asset structure evolution • AuM GDP Ratio ING Investment Management 2 Savings structure in Poland Households’ savings structure as of June 2012 Investment funds’ share modest but AuM raising Equities ( 4%) Unit-linked funds (3.8%) Domestic mutual funds (6.5%) Foreign mutual funds (0.4%) Open pension funds (24%) Bonds and bills (0.9%) Cash in circulation outside banking system (10.8%) Bank deposits (49.6%) 140000 Mutual funds and unit-linked funds account to 10,3% of households savings Total industry assets are rebounding and approaching the previous peak AuM in mio PLN 120000 100000 80000 60000 40000 20000 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q3 2012 Source: Analizy Online ING Investment Management 3 Industry AuM – end of September 2012 (m PLN) Open-ended funds Nonpublic Close-ended funds Source: Analizy Online ING IM 4 Funds asset structure evolution since WIG highest level Fixed income funds’ share… Rose by +23 pp Aggressive funds’ share… Dropped by -46,6 pp Others Nonpublic assets Money market Mixed Source: Analizy Online, 4th July 2012 Absolute return ...
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... General Rule and Overview Who Must File Information To Be Reported Section 6038D Penalty Repatriation of Funds Code Section 6038D added to the Internal Revenue Code as part of the Foreign Account Tax Compliance Act (FATCA) in 2010. Code Section 6038D requires certain individuals to annually report to the IRS information about their interest in specified foreign financial interest (“SFFAs”). Filing obligation is dependent of the aggregate value for the year of SFFAs and the applicable threshold. Reporting is required for assets held in taxable years beginning after March 18, 2010 on Form 8938. Form 8938 is attached to the taxpayer’s annual income tax return and is due on the same date (including extensions). Code section 6038D(a): “Any individual who, during any taxable year, holds any interest in a specified foreign financial asset … if the aggregate value of all such assets exceeds $50,000 (or such higher dollar amount as the Secretary may prescribe).” Specified Individual: Dual Residents: ◦ U.S. citizens; ◦ Individuals who are U.S. residents for any portion of the relevant year; ◦ Nonresident aliens who are married to a U.S. citizen or U.S. resident and who elect under Code Section 6013(g) or Code Section 6013(h) to be treated as U.S. residents for certain federal tax purposes; ◦ Nonresident aliens who are bona fide residents of Puerto Rico; and ◦ Nonresident aliens who are bona fide residents of a so-called “Section...
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...Sixth Possible Serious Economic Danger for 2015 and Beyond A report by Sandeep Vete 1 DANGER #6: Collapse of US Dollar as world’s de-‐facto currency The modern US currency under the “Dollar Standard” is a FIAT currency but the underlined reality is that the world oil trade and the strength of US military backs the US Dollar. Source: w ww.beforeitsnews.com Demand for dollar is created by its “Petro-‐Dollar” status and mitigates the inflation to a large degree by distributing the consequences globally and not merely affecting United States. Essentially US writes the hot check and the world has to pay the bills. (When Will The Economy Collapse? 2013, July 24) This system is perfect till no one decides to twist the system like Iraq did in 2000 by selling oil in euros or Libya did by try pulling most of Africa off the...
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...Introduction of United Commercial Bank (UCBL) United Commercial Bank Limited (UCBL) is a First-generation private commercial bank established in Bangladesh in the year 1983 under the Companies act. Since inception, it has committed to provide high quality financial services to the people of this country to accelerate economic development of the nation. As such, it has been working for stimulating trade and commerce, accelerating the pace of industrialization, boosting export, creating employment opportunity, alleviating poverty, raising standard of the living of the people etc. and thereby contributing to the sustainable development of the country. At present the bank has 148 branches in both rural and urban areas of the country. Since inception, the bank has been making significant profit every year and this has been possible due to significant growth of the bank. With its firm commitment to the economic development of the country, the Bank has already made a distinct mark in the realm of Private Sector Banking through personalized service, innovative practices, dynamic approach and efficient Management. The Bank, aiming to play a leading role in the economic activities of the country, is firmly engaged in the development of trade, commerce and industry thorough a creative credit policy. Corporate Slogan of UCB: "United we achieve" Mission: United Commercial Bank limited Always try to meet the demand of the customer and to Solve most of their expectations. Their...
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...Swiss Private Banking Table of Contents: I. Introduction: 1) Economy of Switzerland; 2) Overview of Swiss Private Banking Sector; II. Strengths and Opportunities of Swiss Private Banking: 1) Privacy; 2) Protection and Safety; 3) Stability and High Quality Standards; III. Weaknesses and Problems that Swiss Private Banking is facing: 1) Dependency on socio- demographic factors; 2) Shifting of wealth concentration; 3) Speed of recovery of markets; 4) Threat to offshore banking; 5) Hard to ensure sustained profitability; IV. Offshore banking in the light of current financial crisis V. Differences in the way different sized banks were effected: 1) Megabanks; 2) Small – medium sized banks; VI. Strategies adopted by private banks after financial crisis: 1) Credit Suisse; 2) UBS; VII. Conclusion Switzerland is one of the most stable, modern and highly developed economies in the world nowadays. Percentage of Swiss Workforce by Sector of Economy is as following: - 1960: Services (39%); Manufacturing (47%) ; Agriculture (15%) ; - 2008: Service (73%); Manufacturing (23%); Agriculture (4%). Economic history of Switzerland is characterized by steady movement to higher productivity industries and services. Traditionally, the Swiss economy used to ran as calmly and soundly as a Swiss clock, well-oiled by the money inflows to Swiss private banks. The country of Switzerland has a small territory compared to surrounding countries and...
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...The United Nations’ Role in International Tax Policy A Research and Policy Brief for the Use of the NGO Committee on Financing for Development Hamrawit Abebe, Ryan Dugan, Michael McShane, Julie Mellin, Tara Patel, and Linda Patentas Graduate Program in International Affairs, Milano School of International Affairs, Management, and Urban Policy, The New School March 7, 2012 TABLE OF CONTENTS EXECUTIVE SUMMARY BACKGROUND AND PERSPECTIVES BACKGROUND AND ANALYSIS THE OECD, G77, G20, AND EU ON UPGRADING THE UN TAX COMMITTEE KEY INSTITUTIONAL PLAYERS ARGUMENTS FOR AND AGAINST A UN TAX BODY 3 4 8 12 17 REFLECTIONS AND RECOMMENDATIONS RELATIONSHIP BETWEEN OECD AND UN TAX COMMITTEE GLOBAL TAX POLICIES POLICY RECOMMENDATIONS 20 28 38 APPENDIX GLOSSARY AND ACRONYMS REFERENCES 44 48 52 2 Executive Summary The report provides an analytical view on the role of the United Nations in tax policy, highlighting the interventions made by and challenges to key players in attempts to streamline global tax cooperation. The first section of the paper provides a background on the importance of tax related issues, emphasizing its importance within the Monterrey Consensus. Debates are introduced between two key institutional players regarding global tax cooperation, the OECD’s Committee on Fiscal Affairs and the UN Tax Committee. Views from key players the OECD, Group of 77, Group of 20, and European Union are addressed in the areas of international tax cooperation...
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...FINANCIAL SERVICES Optimizing banking operating models From strategy to implementation September 2012 kpmg.com KPMG INTERNATIONAL Contents Executive summary The challenges facing the banking sector Regulations and regulators Economic environment Changing customers The march of technology 3 3 3 1 2 2 How will these changes affect the universal banking operating model? The end of universal banking Disintegration of the value chain Cost efficiency is key in developing new operating models New IT architectures are essential 6 6 5 4 4 What banks need to do Seizing this once-in-a-life-time transformation opportunity Developing an innovative operating model to overcome loss of scale and cost issues Implementing long-term sustainable cost reduction measures Implementing an iterative and collaborative approach to a complex, multi-faceted problem 10 11 9 8 8 Making it to the finish line 13 © 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved. Optimizing banking operating models | 1 Executive summary A s the world emerges from what has been described as the greatest crisis in the history of finance capitalism, banks must adapt to radical new regulations, technologies, customer expectations and economic environments. The current universal bank operating model...
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...Contents Annual Report Annual Report ABN AMRO Group N.V. 2011 Notes to the reader Introduction This is the Annual Report for the year 2011 of ABN AMRO, which consists of ABN AMRO Group N.V. and its consolidated subsidiaries. The Annual Report consists of the Managing Board report, Supervisory Board report, and the Consolidated Annual Financial Statements. Presentation of information The financial information contained in this Annual Report has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). This Annual Report is presented in euros (EUR), which is the presentation currency of ABN AMRO, rounded to the nearest million (unless otherwise stated). All year-end averages in the Annual Report are based on month-end figures. Management does not believe that these month-end averages present trends materially different from those that would be presented by daily averages. Certain figures in this document may not tally exactly due to rounding. In addition, certain percentages in this document have been calculated using rounded figures. As a result of the integration, the current segment reporting is still subject to minor changes. This report can be downloaded from abnamro.com For more information, please go to abnamro.com/ir or contact us at investorrelations@nl.abnamro.com ABN AMRO Group N.V. Gustav Mahlerlaan 10, 1082 PP Amsterdam P Box 283, 1000 EA Amsterdam .O. The Netherlands Telephone:...
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...McKinsey Banking Practice McKinsey Private Banking Survey 2012 Finding a new footing July 2012 Contents 05 Introduction 19 06 12 Middle East: Attractive but increasingly competitive Western Europe: Fighting for sustainable profits 21 Priorities for finding a new footing North America: Expanding profitability, but no growth 26 27 Disclaimer 16 Authors Asia: Growing fast but at a cost McKinsey Private Banking Survey 2012 Finding a new footing 5 Introduction Private banking may be one of the most attractive segments within financial services in 1 terms of profitability, but it has not emerged unscathed from 4 years of financial crisis. Not only did the crisis hit the economics of the industry by slowing net inflows and squeezing margins, it has also led to structural changes. Following a difficult year in 2009, when net inflows in developed markets were negligible and margins and profits hit record lows, a modest improvement was seen in 2010. It seemed at first that this recovery would continue in 2011. But, after a good start, the industry suffered from a difficult second half: markets fell and profits stagnated at low levels. The situation has not yet improved in 2012; another good start was wiped out in the second quarter. Given the continued growth in global wealth, this implies that private banks are failing to capture their fair share of the market. The longer-term structural changes caused by the crisis are creating...
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