WASHINGTON (NEWS.GNOM.ES) – The U.S. Treasury Department said on Thursday it had reached agreements with Switzerland and Japan to crack down on tax evasion by Americans, a move meant to help foreign banks in those countries comply with upcoming U.S. tax regulations.
The announcement expands the list of countries already cooperating with Treasury to implement the U.S. Foreign Account Tax Compliance Act, or FATCA, a 2010 anti-tax evasion law.
Treasury said in February it was negotiating with France, Germany, Italy, Spain and Britain to set up government-to-government information sharing deals.
The U.S. tax law has worried foreign banks that have U.S. clients. Banks face penalties if they refuse to give the United States certain client information required by FATCA.
Banks in several countries have said they were legally unable to comply with FATCA under their domestic privacy laws. Deals like those just announced seek to resolve such issues.
The rules dictating how FATCA will be enforced have not been finalized. Treasury officials have said the rules may be finished as soon as August.
(Reporting by Patrick Temple-West; Editing by Kevin Drawbaugh and Chizu Nomiyama)