In a step toward reining in offshore tax evasion, the U.S. Treasury Department on Thursday said it was close to finalizing tax information-sharing pacts with countries ranging from Canada to islands such as Guernsey and the Isle of Man. Treasury listed 47 jurisdictions, from India to Sint Maarten, that are in various negotiation stages on formal agreements governing how their local financial businesses can comply with the U.S. Foreign Account Tax Compliance Act (FATCA).
The department's statement said the Cayman Islands, Gibraltar and Liechtenstein are talking with Treasury about FATCA compliance. These nations are widely viewed as tax havens.
Enacted in 2010, FATCA requires financial institutions that have accounts held by Americans valued at more than $50,000 to report some client information to the Internal Revenue Service. Beginning in 2014, institutions that fail to comply could effectively be locked out of the U.S. financial marketplace.
When it was enacted, FATCA caused
This article is only available in full to Compliance Complete
UK and Europe Latin America & Caribbean Australasia Africa North America Middle East Asia Subscribers who are logged in.
Please log in to see if you can view this content.
