U.S.Tax authorities and foreign governments are on track to conclude dozens of
agreements in coming months on the sharing of financial data about
citizens, with deadlines nearing implementation of a sweeping U.S anti tax evasion law.
The U.s.Treasury also initialled an inter governmental agreement (IGA) with Germany. The deal still needs final approval by both countries' tax officials,but shows progress being made in implementing the Foreign Account
Tax Compliance Act (FACTA)
FACTA made law in 2010 as part of a crackdown on tax dodging by wealthy
Americans, requires foreign financial institutions to disclose to the Internal
Revenue Service more about Americans' offshore accounts that are worth more than $50,000. .Completed pacts are in place with Britain,Denmark,Ireland,Mexico
and since earlier this month with Switzerland.
FACTA implementation is seen by some tax experts as contributing to greater tax
strictness around the world.
"There has been a real shift on the international level in identifying tax evasion
as a massive social problem",said Heather Lowe,Director of government affairs
at antigraft watchdog Global Financial Integrity.
Source: GFI & REUTERS.