Draft IRS Rules Could Reduce FATCA Costs by $10bn, Says KPMG
Responding to the proposed FATCA regulations issued by the US Internal Revenue Services (IRS), Adrian Harkin, global FATCA leader at KPMG, commented: “Reactions to yesterday’s draft FATCA papers will be mixed.
“On the one hand, the IRS has done a good job in listening to the financial services industry and has tightened the scope of FATCA, making the proposals more proportionate. We estimate that these measures could reduce the implementation cost of FATCA by more than $10bn.
“On the other hand, FATCA will still cost the industry much more than it is likely to raise for the IRS. Plus, the introduction of bilateral FATCA agreements between countries will add more complexity into the mix for the biggest global financial institutions.
“The bottom line is FATCA continues to present a major challenge to the industry at a difficult time and any efforts to further reduce its impact would be welcome.”