3 september 2014
The main purpose of FATCA is to prevent U.S. residents from using foreign financial institutions in order to conceal their assets (income) and avoid paying taxes in the USA.
To view more detailed comments of the Association of Commercial Banks of Latvia on FATCA click the link: http://www.bankasoc.lv/lv/pdf/faktu_lapa_RU.pdf
1). A Lativan bank undertakes to comply with FATCA regulations registering as FATCA compliant and receiving a Global Intermediary Identification Number for purposes of FATCA.
2). A Lativan bank has to request its current and future clients to confirm their FATCA status, incl. information on whether clients or clients’ beneficiaries are U.S. citizens, residents or other U.S. persons for tax purposes in the USA. If a client (prospective client) or a client’s beneficiaries are U.S. citizens, residents or persons, such client has to provide a US Tax Form W-9. In this regard a Latvian bank may contact its clients and clients’ beneficiaries to obtain additional information or documents confirming clients’ or clients eneficiaries’ tax residence.
3). To minimize risks for clients’ and/or clients beneficiaries’ to be recognized as U.S. persons WE HIGHLY RECOMMEND to abstain from using in foreign business management:
• A U.S. residence address or a U.S. correspondence address;
• A U.S. phone number as the contact phone number;
• A power of attorney granted to a person with a U.S. address;
• A U.S. P.O.box, an ‘in care of’ address or a ‘hold mail’ address;
• To engage in business persons having permanent resident status (Green Card);
• Any partnerships, companies, corporations registered in any state of the USA, or District of Columbia, as well as any trusts, if a court within the United States would have authority under applicable law to render orders or judgments concerning substantially all issues regarding administration of the trust, and one or more U.S. persons have the authority to control all substantial decisions of the trust.
To get further clarification and advisory, and to identify your tax residence and liabilities to pay taxes in the USA, please contact Mr. Igor Stukanov, Certified Lawyer
Minsk mob. +375 29 6 239-476
Riga mob. +371 29 676-476