Fatca's compliance demands spell trouble for outsourcers

Contracts may need overhauling to match tax-evasion law


When US Congress enacted the Foreign Account Tax Compliance Act (Fatca) in 2010, it may not have anticipated the compliance obligations this would impose on the large number of financial institutions around the globe that have found themselves caught in this complex web. Foreign financial institutions (FFIs) and US withholding agents have invested heavily in programmes to comply with the anti-tax evasion regulation, which, in many cases, is likely to involve reliance on third-party suppliers

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