'GATCA, which for Americans would arguably violate the Fourth Amendment, is FATCA on steroids'
The founder and chief executive of the deVere Group has called for America's controversial FATCA legislation to be repealed.
Nigel Green said: 'I would… urge Americans who care about prosperity and freedom to take up the call to seek to have FATCA repealed. Not only because it is, arguably, one of the most toxic and potentially damaging laws passed in recent times, but because I suspect it is a blue print for worse to come.'
He added: 'Questions should be asked about the imperialist characteristics of FATCA. Governments and foreign financial institutions have been coerced into complying with its expensive, onerous, privacy-infringing, sovereignty-violating regulations by the U.S. - or face heavy penalties and the prospect of being effectively frozen out of U.S. markets'.
Green wants FATCA to play 'a major part in the national conversation ahead of the [presidential] election', and has called on all candidates to make clear their position on the law.
'Presidential candidates who support this tax act now need to justify to America why they support it; whilst those who want it repealed now need to articulate to voters why they believe it is fundamentally flawed and why they will move to repeal it,' he said.
A 'masterclass' in unintended consequences
FATCA was solely intended to catch tax evaders (which it will go some way to achieving) but its indiscriminate approach means that there have been a plethora of unintended consequences.
Since the introduction of Act, there has been a surge in the number of overseas American citizens renouncing their citizenship, as financial institutions are less likely to do business with them due to the costly reporting regulations.
1,335 American citizens renounced their citizenship in the first three months of 2015, while 3,415 renounced their citizenships throughout 2014.
Green feels that the legislation 'brands the 7.6m Americans overseas, Green Card holders and so-called 'accidental Americans' as financial pariahs'.
Short of stopping tax evasion, Green said, 'what it does achieve is giving us all a masterclass in the law of unintended consequences'.
The CEO also had words of warning for further state intrusion into financial affairs.
'FATCA is paving the way for GATCA, the Global Account Tax Compliance Act', he explained.
'The Organization for Economic Cooperation and Development (OECD), which is based in France and is the defacto world tax authority, is proposing that accounts opened by foreign nationals be routinely reported to that individual's homeland tax authorities. It is thought approximately 65 countries could ultimately be involved.'
He added: 'GATCA, which for Americans would arguably violate the Fourth Amendment, is FATCA on steroids'.