Us Switzerland Fatca Agreement

On 21 June 2012, the United States and the Swiss government issued a joint statement on a “Cadre for Cooperation to Facilitate the Implementation of FATCA.” The model II project was published by the U.S. Treasury on November 14, 2012. The due diligence and reporting requirements are scheduled to begin on January 1, 2014. The IGA USA – Switzerland was published on 14 February 2013.1 The Federal Council will implement the FATCA agreement on 1 July 2014. In the United States, FATCA will be phased in from July 1, 2014. The Fatca Qualifications Committee is responsible for cooperation between the various stakeholders and deals with issues arising from the implementation of the FATCA agreement. However, Switzerland is not autonomous in interpreting the agreement; Consultations with the United States are necessary in some cases. The opinions developed in response to the questions raised are those of the FATCA Qualifications Committee. The competent authorities of the United States are consulted if necessary.

In Switzerland, opponents of the FATCA agreement were unable to collect the 50,000 signatures needed to hold a referendum on the agreement. The Federal Council will therefore implement the FATCA agreement between Switzerland and the United States from 1 July 2014. In the United States, FATCA will be phased in from July 1, 2014. The Fatca Qualifications Committee encourages cooperation between the stakeholders involved. It addresses the issues raised by the implementation of the FATCA agreement. However, Switzerland is not autonomous in interpreting the agreement. In some cases, consultation with the United States is necessary. The evaluations reflect the opinion of the Fatca Qualifications Committee, which was consulted, if necessary, in collaboration with the relevant authorities in the United States. Analysis At first glance, FATCA does not constitute an automatic exchange of information, as shown by the Swiss model II.

This may be the case if automatic exchanges are considered to be information automatically transmitted to the foreign tax authorities, i.e. without further action on the part of the tax authorities. Indeed, there is no automatic exchange like this in Model II. On the contrary, Model II is an indirect two-tier automatic exchange of information mode, which effectively functions as a direct mode of automatic exchange of information. If there is an obstruction on the part of the account holder, the IRS still has to submit a request for information to the foreign tax authority, i.e. it will take a little longer for the IRS to have the information, as it needs a group request based on “aggregated information”. The automatic exchange of information on the Model II therefore has three characteristics.

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