Taiwan's government has no obligation to meet tax-reporting requirements under Washington's 2010 Foreign Account Tax Compliance Act (FATCA) until it has signed a tax information exchange agreement with the United States, a ruling lawmaker said y
The dispute highlights the risks linked to wealth management products, which had grabbed national media attention earlier this month when a product sold to retail investors at a branch of Hua Xia Bank in suburban Shanghai failed to pay out.
Fon, a citizen of Taiwan who lives in Singapore, is scheduled to appear in federal court in Los Angeles today.
Under FATCA, non-US financial institutions will be required to report information about financial accounts held by US taxpayers, or held by foreign entities in which US taxpayers hold a substantial ownership interest.
Late last month the Hong Kong Association of Banks said it was considering a series of reforms to the Hibor system, including bringing in a formal code of conduct and reducing the number of rates it publishes.
It is principally engaged in investment, property development and investment, hospitality and leisure and financial services.