CAN WE HAVE A LAW LIKE 'THE FOREIGN ACCOUNT
TAX COMPLIANCE ACT (FATCA) OF USA?.
The Foreign Account Tax Compliance Act is a U.S.Law enacted in
2010 as part of the Hiring Incentives To Restore Employment (HIRE)
Act. FATCA requires financial institutions outside the United States
to determine whether it has any customers who are U.S.Citizens and
report information on all of those customers' accounts to the Internal
Revenue Service (IRS).Any bank refusing to comply will be assessed
an automatic withholding Tax on its US source income.Eventhough
it has not even fully gone into effect yet (the first information
exchange will take place in 2015),the law is widely viewed as a
'game changer ' in global information exchange and helped pave
the way for other countries' commitments to a multi lateral
information exchange system. Source : Global Financial Integrity.
The G-20 nations declared in 2013 that the automatic exchange is
"the new Global standard" & pledged to begin exchanging
financial information automatically by the end of 2015.
Global Financial Integrity estimates that in 2011,US$946.7 billion
left developing countries in illicit financial outflows.