Randell Gartin, of counsel in the Vorys Houston office and a member of the tax group, authored an op-ed for the Houston Chronicle titled “New Tax Evasion Laws Could Hamper Houston's Economy.” In the op-ed, Gartin outlines the Foreign Account Tax Compliance Act and says that because of numerous factors Congress should give serious consideration to a bills proposing to repeal parts or all of the law.
The op-ed states:
“The general concept of the Foreign Account Tax Compliance Act seems simple enough. But the actual implementation of the law has proved to be very complex.
This law will be costly, not only to foreign banks, but also to Americans. Foreign institutions are looking for ways to reduce the administrative burden and legal risks associated with having American account holders. Estimates indicate that compliance with this law will cost approximately $5 million-$10 million per foreign bank, for a total of approximately $1 trillion-$2 trillion if all foreign financial institutions comply. These costs will likely be passed on to customers and the American public.
This may partly explain why a growing number of American citizens living abroad have been renouncing their U.S. citizenship - more than 1,800 Americans this year alone, nearly double the number from 2012.”
To read the op-ed, visit the Houston Chronicle website.