FATCA Tax Alert
Insurance industry update
With a January 1, 2013 effective date, the impact of FATCA has been felt globally, as companies located around the world are seeking to understand and prepare for the potentially significant compliance burdens it could involve. In many cases, implementation of FATCA will necessitate the development of major new systems, processes and protocols in order to capture and report the required information. This is particularly true for those companies whose situations are complicated by multiple locations, businesses and business types.
For the insurance industry specifically, this means that U.S. insurers may be required to withhold on payments to non-U.S. payees, and non-U.S. insurers who are the recipients of payments from U.S. entities may be required to collect information from their policyholders that is not only difficult to receive, but which may also not be permissible to request in certain jurisdictions.
Attached below is a copy of the full article ”FATCA and Insurance: Fundamental Questions Remain Unanswered as Compliance Deadline Approaches,” written by Frederic (Rick) Gelfond and Mary Gillmarten of Deloitte Tax LLP.