U.S. Works with Japan, Switzerland to Combat Global Tax Evasion
By MacKenzie C. Babb
Staff Writer
Washington - The U.S. Treasury Department has issued bilateral statements
with both Japan and Switzerland expressing mutual intent to pursue cooperation
in international tax compliance.
The Treasury Department on June 21 welcomed Japan's and Switzerland's
willingness to strengthen their cooperation with the United States in combating
tax evasion.
The cooperation offers a new model for implementing the Foreign Account Tax
Compliance Act (FATCA) "in a way that addresses domestic legal impediments and
reduces burdens on financial institutions," according to acting Assistant
Treasury Secretary for Tax Policy Emily McMahon.
The FATCA, enacted by Congress in 2010, requires foreign financial
institutions to report to the U.S. Internal Revenue Service (IRS) information
about financial accounts held by U.S. taxpayers or by foreign entities in which
U.S. taxpayers hold a substantial ownership interest.
Under the new model, McMahon said, foreign financial institutions will
report certain tax information directly to the IRS, with additional information
exchanged government-to-government upon request.
The original model for implementing FATCA envisions the reporting of
information by foreign financial institutions to their respective governments
and the automatic exchange of that information with the United States. The
original model was contemplated in a joint statement the Treasury Department
signed in February with France, Germany, Italy, Spain and the United
Kingdom.
The department said both intergovernmental models for implementing FATCA
represent important steps toward addressing legal impediments to financial
institutions' ability to comply with the law. The department will use the models
in the United States' work with other countries in tax compliance.
(This is a product of the Bureau of International Information Programs,
U.S. Department of State. )
No comments:
Post a Comment