Renowned author and entrepreneur, Mark Twain, once said,
'tax is a fine for doing well; whereas, a fine is a tax for
doing wrong.' Now, the question on hand is which one of the two
the Foreign Account Tax Compliance Act (the
FATCA) would get unseated! Is it a tax or
a fine? Let's read further to find out.
The FATCA promulgated on March 18, 2010. It was introduced in
line with the Hiring Incentives to Restore Employment
(HIRE) Act, and the then President Barack
Obama signed FATCA into law to help the United States Government,
through the Internal Revenue Service
(IRS), curb tax avoidance by US citizens
and entities on assets held in offshore accounts. FATCA is a
comprehensive, and complex arrangement of tenets intended to impose
tax compliance upon American citizen regarding assets outside the
United States and such citizens are required to report such assets
to IRS. Importantly, also, foreign financial institutions are also
obliged to comply with the reporting
