Had [the Stop Tax Haven Abuse Act] been enacted, [it] would have impacted the investment fund industry in many ways, including the conversion of many foreign "blocker" entities into US corporations. The bill did not get traction but now it is being reintroduced both in the Senate (S.1346 introduced by Senator Levin) and in the House (introduced by Representative Doggett)... [T]he sponsoring Congressmen envisage even tougher rules than the initially-introduced bill, including some turbo-charged FATCA related provisions... If closing loopholes and amending the Internal Revenue Code had any tangible connection to the prosperity of the American people, the exponential growth of such loophole patches and Code amendments would clearly have lead to an exponential growth in wages, employment and lower work hours, which seems not to be the case, at least as of now.
... Notice 2011-53... provided for a phased implementation of the FATCA law. Pursuant to this Notice, registration of participating FFIs will begin no later than January 1, 2013. Withholding obligations with respect to FDAP payments will begin on January 1, 2014. FFIs that would otherwise be subject to Chapter 4 withholding will be identified as participating FFIs and therefore should not be subject to such withholding if they have registered as participating FFIs and entered into FFI Agreements by June 30, 2013. Withholding obligations of participating FFIs with respect to passthru payments will be specified in future regulations, but will begin no earlier than January 1, 2015. The Notice further provides a guidance timeline, which stipulates that proposed regulations will be issued by December 31, 2011 and final regulations by the summer of 2012. Only time will tell what happens to FATCA and what the end product will be.
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