Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

U.S., 5 Others Strike Agreement to Combat Offshore Tax Evasion

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/26/2012 | 03:24pm CET

--Treasury releases model agreement to obtain U.S. taxpayer information through foreign governments

--One version of agreement requires the U.S. to exchange information about foreigners that it collects from domestic banks

--Agreement developed with U.K., France, Germany, Spain and Italy

(Adds details about Thursday's agreement starting in the third paragraph and additional background throughout.)

   By Eric Morath 
 

WASHINGTON--The U.S. Treasury released a model agreement struck with five European nations Thursday that will allow for the enforcement of a law that targets offshore tax evasion.

The agreement, which still must be finalized, would create a new global regulatory system to prevent Americans from dodging taxes through foreign accounts, including a plan to obtain U.S. taxpayer information through foreign governments.

One version of the model released Thursday would require the U.S. to exchange information about foreigners that it collects on accounts held in domestic financial institutions, the Treasury said.

The provisions developed alongside the U.K., France, Germany, Spain and Italy are essential to the U.S. enforcing the Foreign Account Tax Compliance Act, passed in 2010.

The so-called Fatca rules, require foreign financial institutions to start reporting detailed information about U.S. account holders to the Internal Revenue Service in coming years. If the firms don't comply, they could face U.S. tax penalties.

The negotiations among the six countries created two versions of the agreement. The "reciprocal version" includes a policy commitment for the U.S. to pursue regulations and legislation that would provide for equivalent levels of exchange as it demands from other countries. Treasury said that version will be available to certain governments, on a case-by-case basis.

Thursday's model agreement "is an important milestone in our joint efforts to combat offshore tax evasion and make our tax systems more efficient and fair," Treasury Secretary Tim Geithner said in statement.

Mr. Geithner said the model agreement allows Fatca to be implemented in a "targeted and effective" way.

Banks have expressed concerns about the burdens the law creates.

Both versions of the agreement, however, allow for foreign financial institutions to report the necessary information to their respective tax authorities, helping to avoid duplicative efforts. Then the information would be subject to exchange under existing bilateral tax treaties or similar deals.

Thursday's model builds upon a commitment made by the six countries in February, but could be followed by other countries as well. Last month, Treasury announced deals with Japan and Switzerland to allow banks in those countries to comply with law.

Write to Eric Morath at eric.morath@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
01:14p NEOTHETICS : reports 4Q loss
01:13p CORO MINING : IIROC Trade Resumption - COP
01:12p WPP : New campaign from DUTCH LADY and Y&R Hong Kong
01:12p WORLD NANOSTRUCTURED CARBON COMPOSITE MARKET 2017 : Opportunities and Forecasts, 2014-2022 - Key Players are Bayer, Emfutur, NanoAmor, Applied Sciences, Graphene Nanochem and XG Science - Research and Markets
01:11p LAS VEGAS SANDS : Marina Bay Sands' Executive Chefs Mentor Participants of the Inaugural Culinary Olympics
01:11p CENTRICA : Launches Responsible Business Update 2016
01:11p GLOBAL ALUMINUM LITHIUM ALLOYS MARKET : Southwest Aluminum, Rio Tinto Alcan, Alcoa, Constellium, FMC
01:10p EIGER BIOPHARMACEUTICALS : BioPharma reports 4Q loss
01:10p NEOTHETICS : Management's Discussion and Analysis of Financial Condition and Results of Operations. (form 10-K)
01:09p Golar LNG Partners L.P. - Buyback of outstanding 2017 maturing bonds
Latest news
Advertisement
Hot News 
-3.97%BASIC FIT : core earnings rise on record number of new gym openings
6.49%NEXT : Investors find some comfort in Next's chilly outlook
-3.34%IG : quarterly revenue falls 3.8 percent on UK, Ireland weakness
-5.70%TED BAKER : Retailer Ted Baker's profit rises on strong UK, Europe sales
2.12%GVC : to pay second special dividend for 2016 on favourable trading, refinancing
Most Read News
04:02a Verizon, AT&T suspend ads from Google over offensive videos
06:51a NEXT : Investors find some comfort in Next's chilly outlook
03/22DJAT&T Pulling Ads From Google Over 'Hate' Videos -- 3rd Update
03/22DJSEARS : Stock Stumbles After Going-Concern Warning -- 3rd Update
05:10a UBS : set to charge wealthy for keeping euro savings
Most recommended articles
03/21 UK to investigate any UK banking involvement in 'Laundromat' case
07:57a PBF ENERGY : Shell reluctant to part with California refinery amid asset sale
07:57aDJCHINA LIFE INSURANCE : 2016 Net Profit Down 45% at CNY19.13 Billion
07:54aDJCURRENCIES : Pound Jumps Above $1.25 After U.K. Retail-sales Surge In February
07:52aDJGold Pulls Back Ahead of House Obamacare Vote