Canada, U.S. discuss international tax compliance

The U.S. Department of the Treasury is reaching out to more than 50 countries and jurisdictions to improve international tax compliance, says the Foreign Account Tax Compliance Act (FATCA).

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“Global cooperation is critical to implementing FATCA in a way that is targeted and efficient,” says Treasury assistant secretary for tax policy Mark Mazur. “By working cooperatively with foreign governments and financial institutions, we are intensifying our ability to combat tax evasion while minimizing burdens on financial institutions.”

The Treasury Department has already concluded a bilateral agreement with the UK.

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Canada is among one country the Treasury hopes to conclude negotiations by year-end. Others include: France, Germany, Italy, Spain, Japan, Switzerland, Canada, Denmark, Finland, Guernsey, Ireland, Isle of Man, Jersey, Mexico, the Netherlands, and Norway.

Jurisdictions with which Treasury is speaking to include: Argentina, Australia, Belgium, the Cayman Islands, Cyprus, Estonia, Hungary, Israel, Korea, Liechtenstein, Malaysia, Malta, New Zealand, the Slovak Republic, Singapore, and Sweden. Treasury expects to be able to conclude negotiations with several of these jurisdictions by year end.

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And countries with which Treasury is working to explore options include: Bermuda, Brazil, the British Virgin Islands, Chile, the Czech Republic, Gibraltar, India, Lebanon, Luxembourg, Romania, Russia, Seychelles, Sint Maarten, Slovenia, and South Africa.

The Treasury Department and the IRS will finalize the regulations implementing FATCA in the near term.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.