On March 5 and 6 2013, Cleary Gottlieb partner William McRae presented a seminar on New US Tax Compliance Rules Under FATCA in Dubai and Abu Dhabi.
The principal goal of the Foreign Account Tax Compliance Act (“FATCA”) provisions was to prevent tax evasion by US taxpayers. The rules adopted to implement this narrow objective, however, have a broad reach. The FATCA provisions introduce a complex and expansive reporting and withholding regime that is intended to force non-US financial intermediaries and US-owned foreign entities to identify and report on US account holders and investors. FATCA will impact all Middle Eastern financial institutions and their customers and it is important that they understand the financial and operational risks that FATCA will bring and the approach of regulators in the region.