Guest post by
Shraddha Bafna, Consultant, Infosys
Another recent development in Legal regulation is the Foreign Account Tax Compliance Act - proposed and implied to restrain tax evasion by US persons through offshore accounts. As per this act, the Foreign Financial Institution needs to get into Inter Governmental Agreement (IGAs) with US to disclose the information of their American Clients to the Internal Revenue Service. Noncompliance of which would slam 30% as withholding tax on the 'withhold able payments' on the FFIs.