[quote=“dan2006”]JeffG, just curious, since so many Taiwanese are themselves dual citizens, will it be simply their voluntary disclosure that will allow the banks here to report them to the tax agency or is the tax agency going to send a list of names to Taiwan to get checked against the banks list of names here?
Because I highly doubt many of the local dual Taiwan US citizens are in compliance. It will cause a lot of blowback for the local government here once the locals accounts start getting scrutinized closely.[/quote]
:roflmao: Your guess is as good as mine! A great question. And I agree, I also highly doubt most of the local dual Taiwan/US citizens are in compliance. As a matter of fact, many are renouncing their US citizenship because of tax issues in the last year. From what I understand so far is that many local banks are simply not going to separate the information and data, because there is simply just too much data, which means ALL data, both US / other nationalities, and Taiwanese data will be sent to the US for them to sort out. One bank employee I spoke with today indicated that their bank had to invest or create a new program to automatically find all the US citizens with an account. It is estimated that at that particular bank less than 1% are US citizens. I highly doubt many locals will voluntarily disclouse their bank information even when they do find out about FATCA. The locals are in serious risk of being penalized if the IRS finds they are not in compliance, because many of those have NEVER paid US taxes. Again this is a situation of citizenship-based-taxation rather than residency-based-taxation.
It will be with great pleasure to see the government here start scrambling once that occurs, because I guarantee you they have no idea what they are signing, because if they did, they wouldn’t be in negotiations.
All of these questions that are being brought up in this thread are great! Because as you can see FATCA is raising more questions than answers!