IDES

The Foreign Account Tax Compliance Act (FATCA) was enacted in March 2010, as part of the Hiring Incentives to Restore Employment (HIRE) Act (IRC Sections 1471 - 1474) and requires Foreign Financial Institutions (HIRE s) to report information regarding financial accounts or foreign entities held by United States (U.S.) taxpayers to the Internal Revenue Service (IRS). Offshore financial centers offer strict financial secrecy and low tax rates or no taxes to non-residents who maintain bank accounts, investments, and/or other financial assets or structures within their jurisdiction. They also allow the formation of non-resident entities, such as international business corporations, personal investment corporations, and foreign trusts to act as de facto holding companies to shield the beneficial ownership of those financial assets. This lack of transparency makes offshore financial centers a haven for U.S. taxpayers to divert income and shield assets.