#FATCA helps US erode tax base of other countries in two ways: 1. Attracting foreign capital to @TaxHavenUSA 2. Imposing direct tax on residents of other countries: "FATCA: The 2010 'tax evasion law' that's 'now an extra-territorial money-sucking machine'" https://t.co/1DYJJ7TYeX
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) October 7, 2021
This purpose of this post is to continue the general theme of focusing on the difference between what a law says and what the law means in application and effect. Yesterday’s post (The Pandora Papers, FATCA, CRS And How They Have Combined To Create Tax Haven USA) focused on the role that the 2010 US FACTCA law played in in facilitating the rise of Tax Haven USA. (To be clear, I am not saying that FATCA was the sole cause.) That said, the unwillingness of the USA to sign the CRS (“Common Reporting Standard”) has also played a role in the growth of the US as a tax haven.