This site uses cookies to provide you with a more responsive and personalized service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Email Print this page

April 9, 2013: Tax Information Exchange among the G5 Countries

Foreign Account Tax Compliance Act (FATCA)


DOWNLOAD  

European Union's five largest economies to cooperate on tax evasion

Taking a page from the United States’ FATCA playbook, the United Kingdom, France, Germany, Italy, and Spain have announced an agreement to develop a multilateral tax information exchange methodology among the G5 countries. The agreement is expected to allow for the automatic exchange of financial information among the G5 countries and lays the groundwork for expanding multilateral automatic tax information exchange protocols to other European countries including the G8. Similar to FATCA, the information exchange will help identify and deter residents from evading local tax and promote enhanced cross border financial information reporting.

The G5 will base the multilateral tax information exchange pilot on the Model Intergovernmental Agreement (IGA) previously developed between the U.S. and the G5; an exchange designed to reduce the cost of compliance for financial institutions and governments already developing processes, procedures, and systems capability to comply with the Model IGA. The multilateral pilot echoes recent comments from the U.S. Treasury to develop a global standard to facilitate the automatic exchange of tax information among participating jurisdictions. The agreement also builds on recent agreements the U.K. has reached with the Isle of Man, Guernsey, and Jersey, along with current discussions with between the U.K. and Overseas Territories.

Since its inception, FATCA has been a tension point between the U.S. and many jurisdictions due to privacy concerns related to cross border financial information reporting. However, the U.S. has made great strides in working with many jurisdictions to develop alternative mechanisms to facilitate compliance and enable tax information exchange to improve international tax compliance. This latest step further bolsters the international community’s interest to obtain and share tax information globally; enabling jurisdictions to monitor and promote tax compliance by its tax residents.

Deloitte will release further details on the content of the recent G5 agreement as they are released and analyzed, and as usual, we will keep you up to date with any developments as it relates to FATCA and global tax information exchange.

Full article is available for download. For more information please contact FATCA Leader or click here.

As used in this document, “Deloitte” means Deloitte Tax LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

 

Last updated

Related links

Share this page

Email this Send to LinkedIn Send to Facebook Tweet this More sharing options

Stay connected