Brown, PC Brown, PC Tax Practice Group 888.870.0025
Call for an initial consultation
Call 888.870.0025

U.S. Treasury Signing IGAs with Foreign Governments to Combat Offshore Tax Evasion

The U.S. Treasury has signed a number of intergovernmental agreements (IGAs) to combat offshore tax evasion and to comply with the Foreign Account Tax Compliance Act (FATCA). The U.S. has completed agreements with the Cayman Islands, Costa Rica, Denmark, France, Germany, Ireland, Japan, Mexico, Norway, Spain, Switzerland, and the United Kingdom.

Furthermore, the U.S. Treasury is in various stages of talks and or negotiations with other foreign governments such as Bermuda, Italy, Hungary, Malta, Canada, Israel, the Czech Republic and more than 70 other countries.

FATCA requires foreign financial institutions that hold the accounts of U.S. taxpayers to release information directly to the Treasury. If a financial institution fails to release the identity of and to provide information on U.S. account holders, FATCA allows U.S. financial institutions to enforce a 30% withholding tax on payments made to foreign financial institutions.

The IGAs are not just a one-way funnel of information to the Treasury; a number of the foreign governments have tailored the IGAs to meet their specific needs and they require the U.S. to provide information in return.

According to Robert Stack, Treasury deputy assistant secretary for international tax affairs, "the U.S. government's work with other counties and jurisdictions on the disclosure rules marks the growing movement toward global tax transparency." Stack further stated that FATCA is recognized for fighting offshore tax evasion and encouraging transparency.

No Comments

Leave a comment
Comment Information
Print this Page
Email Us For A Response

Request A Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact Information

Brown, PC
500 Main Street
Suite 400
Fort Worth, TX 76102

Phone: 817-870-0025
Fax: 817-870-0515
Map & Directions