The United States continued construction on what appears to be a wide net designed to catch tax evaders on Thursday by cooperating with France in the fierce global tax battle. The agreement was signed in Paris by Finance Minister Pierre Moscovici and the United States ambassador, Charles H. Rivkin.
China, along with several other countries, isn't too happy with the new law being added to the Foreign Account Tax Compliance Act, or Fatca. The opposing countries accuse the broad law of being overly intrusive, drawing sharp complaints from American expatriates and companies of burdensome compliance requirements.
France, along with Britain, Germany, Spain and Italy, showed support for Fatca early last year, but Thursday's 52-page agreement makes the specifics of the U.S. French cooperation clear.
French President Francois Hollande has been aggressively pursuing tax evaders since facing blistering criticism over leaked information that Budget Minister Jerome Cahuzac was attempting to evade taxes by hiding money in a Swiss Account which resulted in his resignation.
Financial institutions around the world have been unhappy with the law from the start, claiming that it is too broad and that it is an attempt to impose American tax laws around the world.
Seeming undeterred, U.S. officials have continued intensive negotiations with countries around the world to create bilateral pacts that will establish a solid foundation for the law's effectiveness.
No matter the outcry, it would appear that for now, the law's march toward implementation is steady with no sign of slowing.