THE US TREASURY is to reveal details of a deal struck with the UK, forming part of its global effort to stem tax evasion and secure information on tax dodgers.
The agreement is part of the US 2010 law, the Foreign Account Tax Compliance Act (FATCA), which targets people evading tax using foreign accounts, reports the Financial Times.
Washington announced in February that deals had been reached with the UK, France, Germany, Spain and Italy ordering banks in those nations to submit information on American account holders through their own governments instead of directly to the US government.
Similar agreements were made last month with Japan and Switzerland, although concerns were raised by financial institutions that they lacked detail and could soon be subject to what they see as the law’s burdensome requirements.
The American Treasury will release at least one part of its accord with the UK in the hope that it will act as a template for other countries.
“We are expecting the inter-governmental agreements to change FATCA in a meaningful way, but not cure FATCA,” Harris Horowitz, global head of tax at BlackRock, told the Financial Times.
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