FACTA regulations: NAPF response to an IRS consultation
The NAPF has been closely monitoring the FATCA regulations issued by the tax authorities in the USA. NAPF members have expressed concerns that the new rules could cause huge administrative burdens for pension schemes or force them to pay a 30% tax on their US investments.
The latest draft shows that the USA’s Internal Revenue Service is looking to exempt pension schemes, but the wording is still not watertight. The NAPF’s submission makes a series of proposals that would clarify the Regulations.