Mubasher: It is possible that the United States expats could have their passports revoked next month if they fail to comply with their tax and financial obligations under the Foreign Account Tax Compliance Act (FATCA).
This was revealed by Mr. Jim O’Niell, Vice President of US Financial Advisory & Audit Firm (USFAAF) during his visit to Dubai on Sunday.
The US-based firm’s Middle East headquarters is in Dubai with offices in Saudi Arabia and Egypt. USFAAF’s global expansion brings tax advices and services to American citizens in the Middle East.
The Act stipulates that Americans – whether they are resident in the US or not – must report their worldwide income as well as their foreign bank accounts to pay taxes in the United States if they opt to retain their passports.
Mr. O’ Niell said: “The UAE has signed a deal to implement the FATCA. The law requires foreign financial institutions to provide annual reports on account information of customers who are US citizens. The act was enacted by the US Congress in 2010 to target non-compliance by US taxpayers using foreign accounts.”
