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FATCA Implementation and Maintenance Costs
Few estimates have been made on the cost to Australian businesses to implement and maintain FATCA compliance systems.
However, some estimates have been made. From Wikipedia article on FATCA:
"Australia: The costs in Australia are estimated to be A$255 million for implementation, and A$22.7M for each year of maintenance. Over 10 years, this totals A$482.68M. With 77,000 resident US citizens (54% of whom are of dual citizenship) and known population of 24,003,100, the estimated implementation cost is A$6,270 per residing U.S. citizen, A$11,590 per U.S.-person account, or A$20.20 per capita. The most representative developed country has 661 bank accounts per 1,000 adults, and Australia has 82.1% population above 15 years old (adults). This yields an estimated 41,700 US-citizen bank customers in Australia, or a FATCA implementation cost of A$37.30 per customer. As there are 3,668 Australian FFI’s are currently registered, the average estimated FATCA cost for each is A$132,000."
Summarise above and
Byrnes and Munro, Texas A&M School of Law, recently published a study into FATCA from a US perspective 1) stating that
"The tax revenue projections, which were used to validate the passage of FATCA did not show FATCA raising any significant tax revenue annually. In fact, except for the extraordinary penalties assessed, little additional tax has been collected. In comparison to the annual on budget spending by the U.S. government, the actual amount of tax collected by FATCA is statistically insignificant."
Here is a detailed summary of this paper.
Professor Byrnes has written a blog post that concisely summarises the problems with FATCA. Is FATCA ‘Much Ado About Nothing’? Is FATCA’s Tax Revenue Going to Offset Its IRS and Industry Costs? William Byrnes (Texas A&M University Law)/April 18, 2017