NU Online News Service, Sept. 1, 2:50 p.m. EDT
A new withholding law will have punitive repercussions for financial-services companies that violate reporting requirements of U.S. citizens who invest in either non-U.S. financial accounts or non-U.S. entities, according to a report from PricewaterhouseCoopers.
The Foreign Account Tax Compliance Act (FATCA), which is set to take effect Dec. 31, 2012, will subject institutions to a 30 percent withholding tax on any "withholdable payment" on both non-U.S. and U.S. financial institutions that fail to make the required reporting and obtain proper documentation.
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