The United States Treasury Department announced February 5, 2014 that Canada and Hungary will implement the Foreign Account Tax Compliance Act (FATCA), in an effort to discourage offshore tax evasion.
The Republican National Committee recently voted to call for the repeal of FATCA and plans to make it a campaign issue this year (see FATCA Implementation Unimpeded by Republicans!)
In an effort to alleviate the concerns of foreign governments about their own bank secrecy laws, the Treasury Department has been negotiating a series of intergovernmental agreements under which it also agrees to share information about their citizens and residents who have accounts at U.S. banks.
In addition to the latest agreements were signed with Canada and Hungary, agreements with Italy and Mauritius to exchange tax information were also recently assign since December 2013. So far, the U.S. has signed 22 intergovernmental agreements and has 12 agreements agreed to in substance to date.
“FATCA implementation is critical to combatting international tax evasion and promoting transparency,” said Deputy Assistant Secretary for International Tax Affairs Robert B. Stack in a statement. “The agreements announced today clearly demonstrate the considerable international support behind FATCA and we are proud to lead the global charge on this pressing issue.”
Canada, Hungary, Italy, and Mauritius, signed reciprocal Model 1 agreements. This means that the U.S. will also provide tax information to these governments regarding individuals and entities from their jurisdictions with accounts in the United States.
In accordance with Circular 230 Disclosure
4 comments on “US Signed 22 FATCA Agreements – Unimpeded By Republicans!”
Efforts should be made to encourage Democrats Abroad to join Republicans Overseas in a bi-partisan repeal of FATCA for the immoral law that it is. Rather than trying to gain by consensus a way to combat offshore tax evasion, FATCA instead threatens economic sanctions against its allies. Dems Abroad are making efforts to repeal many of the very same aspects of FATCA that the RNC wish abolish it for. Republicans are no more in support of tax evasion than Democrats are in support of the use of extortion against the US’s friends, yet it’s only the Republicans who’ve shown the courage to stand up to this abomination of a law – in spite of knowing that they will be misrepresented as supporting offshore tax evasion as a result of their efforts – while Democrats continue to support the alienation of the US’s allies.
No doubt the treasury and IRS will completely abuse the information received under FATCA. Figures will be misinterpreted and tens of thousands of innocent people will have their lives adversely affected by this abuse.
Regardless, the immorality of not taxing by residency is reason enough to abolish this disgusting legislation. No country should have the right to tax citizens who hold legal residency in other countries who tax those same residents. The US itself taxes it’s foreign residents whom every single one is not taxed by their country of citizenship.
“Canada, Hungary, Italy, and Mauritius, signed reciprocal Model 1 agreements. This means that the U.S. will also provide tax information to these governments regarding individuals and entities from their jurisdictions with accounts in the United States.”
Wrong. The last sentence should read: “This means that the U.S. will also promise to provide tax information to these governments regarding individuals and entities from their jurisdictions with accounts in the United States, but is prevented by its own laws from actually doing so and will, as a consequence, deliver nothing at all.”
does anyone knows status for Portugal ?
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