Given the low level of awareness by financial institutions in Nigeria about the Foreign Account Tax Compliance Act (FATCA), Ernst & Young, a leading global professional services advisory firm, is putting together a breakfast session to update its clients and key stakeholders in the financial services industry about the new U.S. regulations and the burden imposed on financial institutions in Nigeria.
The breakfast event will take place at the Four Points by Sheraton, Victoria Island, Lagos, on Wednesday, June 26, 2013.
Commenting on the event, Adekunle Salau, partner and advisory leader for West Africa, Ernst & Young, the goal of FATCA is to reduce U.S. tax evasion by enabling the U.S. Internal Revenue Service (IRS) to obtain information regarding worldwide income of U.S. persons, adding that the legislation came in response to a series of cases in which some international banks were alleged to have helped their clients evade taxes.
According to Salau, financial institutions around the globe now face a complex and onerous compliance burden in order to meet FATCA requirements.
“Full implementation of FATCA is fast approaching, and many financial institutions in Nigeria have either not started or just heard of FATCA, but are not aware enough of what to do next. In South Africa, the big banks are ahead of the game in completing an impact assessment and optimising solutions while in the rest of Africa, FATCA is mainly unheard of.”