The US Hiring Incentives to Restore Employment
(HIRE) Act is more intrusive than any piece of tax legislation
outside the borders of the US and the implications have not yet
begun to sink in abroad, according to a US wealth management
specialist.

In the June
edition of Private Banker International, Louis Marett,
co-chair of the Tax Group at Choate, Hall & Stewart in Boston,
a wealth management specialist said the act was “breathtaking in
scope”.

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The HIRE Act requires financial institutions
to identify and disclose US account holders, or become subject to a
new 30 percent withholding tax regime with respect to any payment
of US source investment income and proceeds from the sale of equity
or debt instruments of US issuers.

“When the global wealth management industry
figures this out, there will be significant pushback,” Marett said.
“Lots of people are going to find out for the first time when they
get a 30% withholding notice.”

 

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