David Rosenbloom's FATCA Interview Makes Headlines in Brazil
On August 18, 2014, Caplin & Drysdale's H. David Rosenbloom sat down with Rafael Vigna of Jornal do Comércio (Journal of Commerce), to discuss the impact of FATCA on Brazil and beyond. The interview made the front page of the Journal, one of Brazil's most prominent publications for economic news. Mr. Rosenbloom is in Brazil to attend the International Forum on Taxation where he is speaking on multiple topics, including cross-border tax issues, the current view from the U.S. on international taxation, and how best to avoid double taxation. The visit is in collaboration with New York University School of Law where Mr. Rosenbloom serves as the James S. Eustice Visiting Professor of Taxation Director for the school's International Tax Program. Please visit the Journal's website to read the complete interview in English or click on the above PDF to read the Portuguese version.
Excerpt taken from the article.
JC - Brazil and the United States reached an agreement on FATCA. What does this mean for investors in Brazilian funds?
Rosenbloom - The real meaning of this agreement is that Brazilian institutions will deal directly with the Brazilian government. Contrary to occur earlier when the negotiations would be made directly with the American government. The effects on Brazilian investors should be especially with regard to Americans and residents of the United States that maintain financial accounts in these institutions citizens. In this case, they are affected by the law itself, and not the intergovernmental agreement.
JC - How it can affect the Brazilian investment funds with investments of investors of the United States?
Rosenbloom - I'm not sure how they will be direct effects on American investments in Brazilian funds. The FATCA is intended for external accounts of American people. Does not relate to investments or accounts of people in Brazil. The aim of FATCA, with respect to Brazil are the Brazilian financial institutions. This is defined in general terms and also extends the statute applicable to Brazilian non-financial entities. But the biggest loss in the final analysis, is limited to creating a means of identifying these American investors in such institutions or entities. I think Brazilian entities that receive such investments can handle the reporting and other requirements, even if, initially, do not be happy to do it.