FATCA Partners

Posted by Sanket Shah | General | Friday 9 March 2012 12:25 pm

In a major development, U.S. declares “FATCA partners” with five countries whereby each pledge more tax information sharing between the Governments. The five countries are France, Germany, Italy, Spain and the United Kingdom.

Extracts of the report:

Under Treasury’s proposed “new government-to-government framework for implementing FATCA,” the governments of France, Germany, Italy, Spain and the United Kingdom will work together to create a means to collect the information from their banks and send it to the United States.

Treasury said that once these five “FATCA partner” countries finalized the framework, banks in those countries would not have to enter into separate data disclosure agreements with the IRS.

In addition, in a reciprocating agreement, Treasury said the United States would collect and share information with the five participating EU countries about accounts held by their citizens in U.S. financial institutions.

For nations not invited to become “FATCA partners” with the United States, banks and financial institutions in those countries must still cooperate on their own with the IRS.

Noticeably absent from the new framework were major international banking nations such as Canada, Switzerland and the Netherlands, not to mention tax haven jurisdictions such as Ireland, the Cayman Islands and Bermuda.

Entire Reuters article can be read here

http://www.reuters.com/article/2012/02/08/usa-tax-treasury-fatca-idUSL2E8D82J120120208

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