FATCA: Implications for Australian Businesses
Those familiar with the Foreign Account Tax Compliance Act (FATCA) know it is a US regulation designed to make it more difficult for US taxpayers to conceal assets held in offshore accounts and shell corporations. Withholding obligations under FATCA came into effect on 1 January 2015 and has global implications extending to Marsh in Australia and some local clients.
The objective of the Act is to increase compliance by U.S. taxpayers, as it is estimated that the U.S. loses billions of dollars annually due to offshore tax non-compliance. While this may initially appear to be a regulation targeted to large global entities, and indeed FATCA will impose regulations on foreign financial institutions, it will also impact entities which FATCA defines as “withholding agents”. Marsh and our clients fall within that category to the extent that insurance or reinsurance premiums are being paid. With this in mind, Marsh is committed to not only being self-compliant, but to ensuring that our clients are compliant as well.
The attached bulletin provides additional information on the obligations for Marsh and affected clients to comply with FATCA obligations.
If you have any questions pertaining to FATCA and the impact on your insurance program, please do not hesitate to contact your Marsh representative.