Tax Law

Shahzad Malik of Stradling, Yocca, Carlson & Rauth on the Foreign Account Tax Compliance Act

On this edition, Shahzad Malik discusses Foreign Account Tax Compliance Act and Tax Extenders Bill provisions that would impose a 30% withholding tax on payments from U.S. sources to foreign financial institutions and others, absent an agreement with the IRS to provide detailed information about U.S. account holders. Mr. Malik raises potential concerns, including increased cost of capital in the U.S. and tax treaty violations. Mr. Malik analyzes these issues in greater detail in Foreign Account Tax Compliance: Problems and Complications. Copyright© 2010 LexisNexis, a division of Reed Elsevier Inc. All rights reserved.