US Treasury expects finalization of more FATCA intergovernmental agreements by year-end

November 2012
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US Treasury expects finalization of more FATCA intergovernmental agreements by year-end

At a glance

US Department of the Treasury announces it is working with more than 50 countries and jurisdictions around the world to improve international tax compliance and to efficiently and effectively implement the information reporting and withholding tax provisions of the Foreign Account Tax Compliance Act (FATCA).

On November 8, 2012, the US Department of the Treasury (Treasury) issued a press release announcing that it is working with more than 50 countries and jurisdictions around the world to improve international tax compliance and to efficiently and effectively implement the information reporting and withholding tax provisions of the Foreign Account Tax Compliance Act (FATCA).

FATCA was enacted to prevent and detect offshore tax evasion by US taxpayers by using a new reporting and withholding regime to detect US tax evaders concealing their assets through direct and indirect ownership in foreign accounts and investments.

According to the Treasury, this development "marks an important milestone in establishing a common intergovernmental approach to combating tax evasion." The press release lists jurisdictions in which the Treasury is in the process of finalizing an intergovernmental agreement as well as those in which it is actively engaged in a dialogue, and those it is working with to explore options.