Login
iscover
Australia and the United States have today signed an intergovernmental agreement (IGA) to reduce the burden on Australian financial institutions in complying with the United States’ Foreign Account Tax Compliance Act (FATCA).
Newsletter
Australia, US sign tax agreement
28 April 2014
•
3 minute read
FATCA is an information-reporting regime enacted by the United States in March 2010. It will commence on 1 July 2014 and will affect a large part of the Australian financial services sector.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
Treasurer Joe Hockey said the conclusion of the treaty-status IGA will help Australian businesses comply with FATCA.
“It reduces the overall burden on Australian business, minimises costs by simplifying due diligence requirements and broadens arrangements between the Australian Tax Office and the US Internal Revenue Service,” he said.
“The IGA will also improve existing tax information-sharing arrangements between Australia and the United States for the purpose of preventing tax evasion. This will help to enhance the integrity of both countries’ tax systems.”
Mr Hockey said the government will introduce legislation to give effect to the IGA as soon as practicable and public consultation will commence immediately on the draft legislation and its explanatory memorandum.
You need to be a member to post comments. Become a member for free today!
