Gibraltar government has signed an intergovernmental agreement (IGA) with the US government to improve international tax compliance and implement FATCA (Foreign Account Tax Compliance Act).
The agreement was signed between the minister with responsibility for financial services Albert Isola and Julie Nutter, minister counsellor for Economic Affairs at the Embassy of the United States in London.
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The IGA will enhance international tax compliance through mutual assistance in tax matters based on an effective infrastructure for the automatic exchange of information.
As part of the agreement, both the countries will work together on tax transparency; thereby improving global efforts to eradicate tax evasion.
The new IGA follows consultation with the industry in Gibraltar and the views of a working group established to consider FATCA and its impact on the financial services sector.
Enacted by the US Congress in 2010, FATCA is intended to ensure that the US obtains information on accounts held abroad at foreign financial institutions (FFIs) by US citizens.
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By GlobalDataIsola said: "The international community considers automatic exchange of information to be the most effective way to tackle tax evasion while minimizing costs for governments and business."
