Final regulations to combat offshore tax evasion issued.

• Position: FTB news

The U.S. Department of the Treasury and the IRS issued final regulations implementing the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (EATCA) that:

* Phase in the timeline. (or due diligence, reporting and withholding and align them with the intergovernmental agreements.

* Expand and clarify the scope of payments not subject to withholding. The final regulations provide relief from withholding with respect to certain grandlathered obligations and certain payments made by non-financial entities.

* Refine and clarify the treatment of investment entities. The final regulations expand and clarify the treatment of certain categories of low-risk institutions, such as governmental entities and retirement funds; provide that certain investment entities may be subject to being reported on by the foreign financial...