Excerpt taken from the article
Washington, July 26 (Reuters) - The U.S. Treasury Department on Thursday spelled out different ways for countries and foreign financial institutions to comply with new U.S. disclosure rules on offshore accounts controlled by Americans, ramping up a crackdown on tax evasion.
Treasury is gradually implementing 2010's Foreign Account Tax Compliance Act, or FATCA, a controversial statute that is shaking the foundations of financial secrecy worldwide.
"Today's announcement is an important milestone in our joint efforts to combat offshore tax evasion and make our tax systems more efficient and fair" said Treasury Secretary Tim Geithner.
Treasury offered two ways to structure agreements. One involves two-way, or reciprocal, information-sharing between national tax collection agencies.
The pathways to compliance outlined on Thursday cater to countries that already have tax treaties or some information sharing arrangements with the United States, said Scott Michel
, a tax lawyer with Caplin & Drysdale.
"This does make the FATCA pill a bit easier for these institutions to swallow since they will largely be dealing with their own domestic regulators throughout the process," Michel said of the new model agreements.Click here to read the entire article on the U.S. Treasury Departments gradual implementation of FATCA