The US Department of Treasury has, reportedly, signed an anti-tax evasion agreement with Italy to crack down on offshore tax avoidance by Americans.
With this deal, Italy will become the 13th country to sign anti-tax evasion agreement with the US, according to Reuters. Italy had joined with four other European countries to sign a FATCA framework in February 2012.
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The agreement will allow Italian banks and financial institutions to report information about eligible US customers’ offshore accounts to the Italian government, which will then send that information to the Internal Revenue Service (IRS).
The deal follows the implementation in July of a new law called the Foreign Account Tax Compliance Act (FATCA).
The agreement will require IRS to send Italy similar information about Italians with financial accounts in the US.
Additionally, the US Treasury is in talks to sign intergovernmental agreements with more than 50 countries to implement FATCA worldwide.
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By GlobalDataFATCA law, which was enacted in 2010, requires financial institutions abroad to disclose Americans offshore accounts worth more than US$50,000 to the tax-collecting US IRS.
Robert Stack, deputy assistant secretary for international tax affairs, said: "We welcome Italy’s commitment to strengthening its cooperation with the United States in improving tax compliance."
