Bloomberg is reporting that the number of Americans expatriating increased 39% in the three months through September after FATCA came into force.
Specifically, people giving up their nationality at U.S. embassies increased to 776 in the third quarter, from 560 in the year-earlier period, according to Federal Register data published yesterday.
Tougher asset-disclosure rules that started July 1 under FATCA has prompted more of the estimated 6 million Americans living overseas to give up their passports, according to Bloomberg. The appeal of U.S. citizenship for expatriates faded further as more than 100 Swiss banks began to turn over data on American clients to avoid prosecution for helping tax evaders.
The U.S., the only Organization for Economic Cooperation and Development nation that taxes citizens wherever they reside, stepped up the search for tax dodgers after UBS AG (UBSN) paid a $780 million penalty in 2009 and handed over data on about 4,700 accounts. Shunned by Swiss and German banks and with Fatca starting, more than 9,000 Americans living overseas gave up their passports over the past five years.
Read full article at Hundreds Give Up U.S. Passports After New Tax Rules Start – Bloomberg.