Ah, the feeling of joy, of accomplishment! Here I was, yesterday afternoon, on the train from Hong Kong to Guangzhou, returning home tired but quite satisfied to still be on schedule, not falling behind (yet) in this, my 47th annual U.S. 'tax season'. That's a really great way to end the month!

And then, this morning: the horror, the horror - I've got a tax story deadline for you guys, reading me on www.taxindiainternational.com . Do I want to write another U.S. tax 'tirade', again? No! Certainly there must be something as interesting, elsewhere..... Although I might have to write something, U.S.-wise, as so much misleading information seems to be emanating out of the place, right now.

Is there anything new really happening, tax-wise, at central government level in China, right now? Not really. The change of leadership is now formally in place for the next five years, at least. New administrators are just starting their tasks in what is a very 'loose' set of guidelines given to them. It is from this lack of over-regulation that two primary aspects of life develop in China: corruption (obviously - it's a world-wide virus) and innovation in running a jurisdiction. There are close to 300 hundred cities in China with a population of over 1 million. 250 of these cities are the so-called third through fifth tier cities; cities of 5 million or less population; locations where social stability and economic growth will certainly get the best and brightest of the administrators of these cities pushed into national level government and politics in the next decade.

The central government announced a 20 percent capital gains tax to curb the expansion bubble of real estate price escalation throughout the country. The Provincial governments were given the task of implementation and Guangdong provincial government announced this week that it is the cities of the province who are directly responsible for introducing their own specific measures to start this tax process as well as slow down price escalation to reasonable levels. Three cities, Shenzhen, Zhuhai and Foshan, at the end of this week, are required to announce their targets and specific rules for cutting home prices. Guangzhou executive vice mayor Chen Rugui has already stated that property prices will not be more than the GDP growth of the city, which is projected to be approximately 8 percent in 2013. Last year, prices increased 14 percent. It was another 14 percent price increase in January and February that led the central government to announce the capital gains tax.

It is how the city keeps its economic momentum and expands its programs based upon the collection of new taxes that will be watched, with those most successful smaller cities being scrutinized to see what can be implemented elsewhere. What is most notable in Guangdong, though, is its follow-through in development of affordable housing in the province: the province will complete construction of 116,000 affordable units, with close to 80,000 more units under construction during 2013. That's new housing in cities for 600,000 people, this year, alone. If only it were enough.....

And how is the provincial government going to get its cities to improve and increase this number? By not-so-veiled threats, of course! The Provincial announcement stated specifically that 'those officials who fail this year to bring their cities' property prices to reasonable levels and to construct affordable houses will be held accountable.'

Accountability is a funny thing in China. I can't possibly imagine western bureaucracies with the Chinese-style of no control/no set procedures form of administration. The appointed leadership of the smaller jurisdictions, more distant jurisdictions have more freedom to do as they please - hence, so much corruption. That is changing but is the pace of change fast enough? Only time will tell.

With a brand new administration headed by Xi and Li, a new chart of government has also been introduced. Li Keqiang, as prime minister, chairs the State Council, which oversees a wonderful, page-long chart of the new lines of power in China that appeared in the Friday, 15 March edition of China Daily. There used to be 27 ministries. They have been consolidated to 25. Railways in China is no longer a separate ministry but now falls under the Ministry of Transport, which it 'shares' with the State Post Bureau and the Civil Aviation Administration. Of particular note - at least, to me - is the inception of the State Oceanic Administration, which will come under the ministerial umbrella of the Ministry of Land and Resources. China is spending money for oceanic research and development. No one in the world seems to be placing emphasis upon this to the degree which China has started getting involved. Does it have anything to do with taxes? Nope! Still, it is something I find interesting as I also find that the State Administration of Taxation, while theoretically attached to the Ministry of Finance, is actually a separate, rather independent bureaucratic organization. See for yourself - all you have to do is go the the China Daily website! If you want to see how China is supposed to function, go online (its a free website) to www.chinadaily.com.cn and look at this chart!!

O.K., I'm giving in and will write some U.S. tax matters that might just be applicable to many of those who are reading this. By now you've heard of FATCA. As the investment climate becomes more attractive for outside investment in India, are those investment advisors managing funds aware that they may be considered foreign financial intermediaries for U.S. tax purposes and that they may very well be subject to FATCA penalties from any U.S. based accounts they may possess.

On 28 March, Tax Analysts (the 'other' journal I write for) announced that a new Form 1042 is expected to be released, soon. Form 1042, the 'Annual Withholding Tax Return for U.S. Source Income of Foreign Persons' is going to be released, mid-April, as per John Sweeney, Branch 8 Chief, IRS Office of Associate Chief Counsel (International). Thus far in my 47 year career as a bean counter, the only Form 1042s that I have seen were not done right - they were withholding of U.S. persons overseas who forgot to send a W-9 to their banks.

Apparently, what Sweeney said in a 27 March address to the American Bar Association, is that in the future, to issue a Form 1042, you will have to have a GINN, a global intermediary identification number, which also will be required for the FFI (don't you just love all the new alphabet terms you're going to have to learn?) to avoid FATCA withholding. And, interestingly enough, there is an October 25, 2013 deadline for applying for the GINN, which can only be applied for online and for which, once you've applied, even if you prepared the online application form incorrectly or subsequently discover that you should never have applied in the first place, you are now likely to be liable for because, in IRS parlance, you have 'checked the box'.

What I find most disturbing is that the IRS seems to have decided that it's role model for gathering information (above and beyond that which they are entitled to without violating moral ethics and privacy) is Google and Facebook, two organizations I believe severely compromise standards of moral ethics and privacy. The present computer system that the IRS has is simply incapable of either working or being repaired to make it work. The new data gathering effort being conducted by the joint facilities of the IRS's Criminal Investigations Division (ie Voluntary Disclosure) and the U.S. Department of Justice does not seem good for the future. Imperialism still exists - as the IRS attempts to collect all financial data from everyone and everywhere in the world where someone exists who the IRS then can penalize!

Are you an FFI and do not even realize it? Get the new, month old FATCA regulations. Read it - all 599 pages. See if you are liable. No, you are not going to read it but do you want to apply for GINN, whether or not you are responsible for this?

The U.S. government won't benefit from these new programs as much as the specialists who start popping up who can explain these forms, their pros and cons, and what you should do about them. No, I will not become a new forms specialist - there are more than sufficient number of useless U.S. tax forms that I can currently work with which will more than adequately provide my retirement plan funding.

All of this old new stuff is unnecessary. All of this new new stuff is unnecessary, immoral and unethical (one man's opinion!) but who am I to complain if the U.S. still wants to keep an old fart like myself in 'demand'? And as I have always stated: Feel free to be vocal about your disagreements with the law but never, never violate the law.....it ain't worth the risk!