Senator Suggests Using FATCA to Punish Russia

Ground Report

Senator Carl Levin: “Fourth, we should ensure that Russian banks are subject to the significant tax penalties imposed on noncompliant banks by the Foreign Account Tax Compliance Act, or FATCA, the antitax evasion law set to take effect in July. Russian banks and financial institutions that fail to register with the Internal Revenue Service and obtain the required identification number by July 1 of this year will be noncompliant with FATCA and become subject to a 30-percent withholding tax on any U.S. investment earnings. We should not negotiate with either Russia or certain Russian banks on measures to provide relief from FATCA’s sanctions until Russia honors its diplomatic commitments and takes steps to diffuse tensions in Crimea and eastern Ukraine, including by withdrawing Russian troops from the border region.”

Editor's Note: To see all the countries that have signed up for FATCA, and those most likely to resist it, see here

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