- of a tax regime on a global scale without any flexibility damages the very economy it is trying to protect."
One executive at a top UK bank who didn't want to be named for fear of angering the IRS said: "It's just about manageable under the current system - and that's because we're big. The danger to us is suddenly being hauled over the coals by the IRS for a client that hasn't paid proper taxes. The audit costs will soar. We'll have to pay it but I know plenty of smaller players won't."
- The British Bankers Association (BBA) and APCIMS had a meeting with European counterparts 10 days ago to discuss the crisis. A delegation is set to meet the US Treasury's Internal Revenue Service on 16th June
- to demand they drop the reforms.
Ahead of the meeting APCIMS, whose members manage £400bn of Britain's wealth and employ 25,000 people, has sent a letter to the IRS complaining that the "unfair" proposals represent "no benefit but... significant cost" to its members.
President Obama's proposals are built on the so-called Qualified Intermediary system which was intended to ensure Americans paid the correct tax wherever they were domiciled.
- Foreign financial institutions that handle American money have to fill in a US tax form on behalf of the client that has to be audited too.
In return, the banks receive a QI seal of approval as a qualified intermediary."
- "British Banks Revolt Against Obama Tax Plan," L. Armistead, via Lucianne.com