Excerpt taken from article.
The U.S. Treasury Department on Wednesday enlisted five EU nations to help crack down on offshore tax evasion by Americans and ease the burdens the effort has imposed on many banks and financial institutions.
After complaints from the global financial industry about costs and legal issues, Treasury announced a new multilateral approach to implementing the Foreign Account Tax Compliance Act, or FATCA.
Opting for a multilateral approach "acknowledges the detrimental impact to the United States of the 'go it alone' mechanism that was ... inherent in the FATCA regime," said Scott Michel
, a tax lawyer at the firm of Caplin & Drysdale.
"This agreement ... will obviously provide a template for other agreements," he said, adding that countries declining to strike similar deals may find their own financial institutions will face overly burdensome compliance and reporting costs.Click here to read the full article about the U.S. Treasury's multilateral approach to implement FATCA