FATCA: Finland Signs Tax Evasion Agreement With United States
(FINNBAY) – 10 March 2014. Finland along with other 49 countries around the world engaged with the US government to implement the information reporting and withholding tax provisions commonly known in the US as the Foreign Account Tax Compliance Act (FATCA).
FATCA aims to establish a common intergovernmental approach to combating tax evasion.
According to the agreement, tax information of citizens of the both countries will be updated annually and shared with each other openly. The exchange of the information will begin in 2015.
“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 agreement will allow the Finnish government to be informed of its citizens’ earnings in the US.
According to the International Consortium of Investigative Journalists, the cooperation may hit the ordinary citizens more than others like royals or rich people as they keep their hidden gems in under-developed countries (tax havens). The cooperation between the countries may bring extra burden on ordinary people as they will need to clarify their extra income to the governments.
Under the agreement, Finland will receive data of Finnish residents’ accounts in the US from the US government each year automatically.
Read the official agreement between the Government of the United States of America and the Government of the Republic of Finland to Improve International Tax Compliance and to Implement FATCA,