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Thread: Dominican banks required to report on US citizens' holding

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    Default Dominican banks required to report on US citizens' holding

    Starting on 1 July 2013, banking entities in the Dominican Republic will be asked to report on accounts held by United States citizens in the Dominican Republic. This is part of the Foreign Account Tax Compliance Act (FACTA) that went into effect in March 2010.

    In Santo Domingo, financial consulting firm Deloitte will be holding a workshop to explain the implications of the act to US citizens living in the Dominican Republic. Richard Troncoso of Deloitte says that this law could mean the 30% retention of payments such as interest, dividends or payments that come from a United States source. According to an article in today's El Nuevo Diario, Troncoso says that every institution which is catalogued as a Foreign Financial Institution and Non-Financial Foreign Entity must accept the documentation of all of their foreign owners or account holders and implement the IRS report requirements beginning on 1 July 2013. This disposition covers every type of financial or moneynrelated business, whether it is banking, finance or stocks and even insurance companies. Deloitte will be holding a seminar on the FACTA implication on 22 November at the Hilton Hotel in Santo Domingo.

    The 22 November breakfast will present the implications of the new ruling: FATCA: Banking and stocks secrecy, obligations of Dominican Financial System with the IRS and consequences of non-compliance. Denise Hintze, tax director for Deloitte New York and Bismarck Rodriguez of Deloitte Panama will be attending. To attend, contact Paula Benzo at 809 563-5151, ext 4723 or email: [email protected]

    The FATCA is requiring foreign financial institutions to report directly to the IRS certain information about financial accounts held by US taxpayers, or by foreign entities in which US taxpayers hold a substantial ownership interest. Under this agreement a "participating" FFI is obligated to:

    (1) Undertake certain identification and due diligence procedures with respect to its accountholders;

    (2) report annually to the IRS on its accountholders who are US persons or foreign entities with substantial US ownership; and

    (3) withhold and pay over to the IRS 30-percent of any payments of U.S. source income, as well as gross proceeds from the sale of securities that generate US source income, made to (a) non-participating FFIs, (b) individual accountholders failing to provide sufficient information to determine whether or not they are a US person, or (c) foreign entity accountholders failing to provide sufficient information about the identity of its substantial US owners.

    Notice 2011-53 provides the phased-in timeline of key FATCA implementation dates for FFIs. It is important to note that many details of the new reporting and withholding requirements pertaining to FFIs must be developed through Treasury regulations that are expected to be proposed by 31 December 2011. Published IRS Notices accessible from this FATCA Internet site provide currently available information and guidance.

    Chief compliance officers, tax reporting heads and other key players within your organization will need to evaluate the potential impact of these regulations and develop a plan for managing and remediating any potential risk associated with Foreign Account Tax Compliance Act (FATCA) non-compliance.

    Under newly proposed U.S. Treasury Code Sections 1471 through 1474, effective for payments after December 31, 2012, all foreign financial institutions (FFIs) will be required to enter into disclosure compliance agreements with the U.S. Treasury, and all non-financial foreign entities (NFFEs) must report and/or certify their ownership or be subject to the same 30 percent withholding. This new reporting and withholding regime will ultimately impact current account opening processes, transaction processing systems and "know your customer" procedures utilized by foreign banks.

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    Another nice touch from "The Land of the Free."

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    Yah gotta love it. Now I know why Jesse Ventura lives in Mexico!

    If one can afford it, it may not be a bad idea to get another citizenship...

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    It also cost you to get rid of your citizenship. The USA is becoming like the mother country; taxation without representation. : Sorry Superman, ditching U.S. citizenship laden with steep costs and pitfalls - The Globe and Mail

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    OMG! Who knew?

    Americans are Americans until the U.S. government officially says they're not.

    I guess the intent is to control/monitor/regulate/stop drug money, but seems to coming down a little harsh on the average person.

    Seriously hope the Canadian government lodges a complaint on behalf of all those dual citizens.

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    Quote Originally Posted by kimbjorkland View Post
    Yah gotta love it. Now I know why Jesse Ventura lives in Mexico!

    If one can afford it, it may not be a bad idea to get another citizenship...
    Getting another citizenship would not stop what the OP is talking about. The only way to avoid it is to renounce US citizenship.

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    Quote Originally Posted by La Rubia View Post
    OMG! Who knew?

    Americans are Americans until the U.S. government officially says they're not.
    Canadians are Canadians until the Canadians government officially says they're not.
    British are British until the British government officially says they're not.

    The same laws of citizenship applies in almost every country in world. You are a citizen of a country UNTIL that country says you are no longer their citizen.



    Seriously hope the Canadian government lodges a complaint on behalf of all those dual citizens.
    I read the article and those dual citizens seems to me that they were keeping their U.S. citizenships as an insurance policy in case they need it to return to the U.S. Why didn't they renounce their U.S. citizenships when they had nothing? Now Uncle Sam wants half of everything.

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    Quote Originally Posted by Ezequiel View Post
    Canadians are Canadians until the Canadians government officially says they're not.
    British are British until the British government officially says they're not.

    The same laws of citizenship applies in almost every country in world. You are a citizen of a country UNTIL that country says you are no longer their citizen.



    I read the article and those dual citizens seems to me that they were keeping their U.S. citizenships as an insurance policy in case they need it to return to the U.S. Why didn't they renounce their U.S. citizenships when they had nothing? Now Uncle Sam wants half of everything.
    Many Canadian/Americans have never lived in the USA as Adults. Many moved to Canada when they were infants or young children and have been educated in Canada, work in Canada, bank in Canada and are Americans by accident of birth.

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    Quote Originally Posted by bob saunders View Post
    Many Canadian/Americans have never lived in the USA as Adults. Many moved to Canada when they were infants or young children and have been educated in Canada, work in Canada, bank in Canada and are Americans by accident of birth.
    I don't think that they were born in the U.S. by accident of birth. Their parents decided to pop up the baby in U.S. soil knowing they were going to gain U.S. citizenship automatically.

    I will call an accident of birth if the mother is transiting through a U.S. airport while 6 to 7 months pregnant and suddenly she had some sort of complications that forced her to give birth in the U.S.

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