Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

2/7/2014 (7 months ago)

Catholic Online (www.catholic.org)

Set to take effect in July, agreement will require foreign banks to share information on American accounts

With billions of federal income lost to tax dodgers every year, both the United States and Canada have entered into a tax information-sharing pact. However, there are challenges remain in implementing a U.S. international tax transparency law.

An intergovernmental agreement, FACTA aims to address Canadian government concerns that may violate domestic privacy laws and burden financial institutions.

An intergovernmental agreement, FACTA aims to address Canadian government concerns that may violate domestic privacy laws and burden financial institutions.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

2/7/2014 (7 months ago)

Published in Americas

Keywords: Tax dodgers, FACTA, United States, Canada


LOS ANGELES, CA (Catholic Online) - Set to take effect on the first day of this coming July, President Barack Obama's Foreign Account Tax Compliance Act, or FATCA will require foreign banks to share information about Americans' accounts worth more than $50,000 with the Internal Revenue Service, or IRS.

A scandal involving Americans hiding away profits in Swiss bank accounts in 2010 resulted in a web of bilateral tax deals between the U.S. and 22 other countries, with Canada and Hungary the latest signatories.

For that someone who is hard to shop for --


"The agreements announced today clearly demonstrate the considerable international support behind FATCA," Robert Stack, the U.S. Treasury Department's deputy assistant secretary for international tax affairs, said in a statement.

The movie is being challenged by two banking industry groups. Both the Texas Bankers Association and the Florida Bankers Association say they are appealing the dismissal of a lawsuit they brought last year that challenged rules meant to help the U.S. implement FATCA.

Political opposition on the law gained traction last week when the Republican National Committee called for FATCA's repeal. The move sided with big banks, libertarians and American expatriates opposed to the law.

FATCA, critics say, is an example of government overreach that will jeopardize personal financial privacy. Dissenting, supporters say it is needed to combat widening offshore tax avoidance.

Other banking associations have called for FATCA to be delayed by six months, arguing that the government has not provided enough guidance about how to comply with it.

Signed into law by Obama, FATCA has been delayed twice. Authorities have struggled to finish drafting the various rules and forms that the banks say they need to comply. Foreign banks that do not comply could effectively be frozen out of U.S. capital markets.

An intergovernmental agreement, FACTA aims to address Canadian government concerns that may violate domestic privacy laws and burden financial institutions.

"Canada engaged in lengthy negotiations with the U.S. government to address our concerns, and as a result, significant exemptions and other relief were obtained," Canadian Finance Minister Jim Flaherty said in a statement.

Under FACTA, Canadian tax authorities will collect information from the country's banks and share it with the IRS under an existing bilateral tax treaty.

Pope Francis calls for your 'prayer and action'...

---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for September 2014
Mentally disabled:
That the mentally disabled may receive the love and help they need for a dignified life.
Service to the poor: That Christians, inspired by the Word of God, may serve the poor and suffering.



Comments


More Americas

As Ecuador plans to drill in the Amazon, natives know their time is up Watch

Image of Oil drilling in the Amazon rainforest has caused great destruction of the once fertile and incredibly diverse ecosystem there.

By Catholic Online (NEWS CONSORTIUM)

Ecuador's Yasuni National Park is considered one of the world's most bio-diverse regions. This unique place is inhabited by more than 20 different endangered mammals, and just 2 ½ acres of this patch of Amazon rainforest contains more than 100,000 species of ... continue reading


33 million crimes per year! Despite crackdown on crime, Mexicans still doubt ability of law enforcement Watch

Image of Despite increased effort to stop crime, most Mexicans revealed they don't report crimes that affect them because they have little faith in the abilities of police or law enforcement to do anything about it.

By Catholic Online (NEWS CONSORTIUM)

A new survey from the national statistics institute (INEGI) revealed that despite claims from the Mexican government that their country is becoming safer, there were a record number of crime victims in that country last year. LOS ANGELES, CA (Catholic Online) - ... continue reading


Eight Mexican soldiers held in shooting deaths of 22 drug gang members Watch

Image of The shooting started after soldiers came under fire from the suspected gang members, resulting in a gunfight lasting several minutes, the government said.

By Catholic Online (NEWS CONSORTIUM)

An army officer and seven soldiers have been detained in connection with the deaths of 22 gang members in the town of Tlatlaya, in rural southern Mexico. While originally described "as a fierce gun battle," the physical evidence at the scene suggests that the ... continue reading


Paraguayan bishop accused of protecting sexually abusive priest removed by Pope Francis Watch

Image of Pope Francis dismissed a Paraguayan bishop accused of protecting a priest suspected of sexually abusing young people this week. Bishop Rogelio Ricardo Livieres Plano of Ciudad del Este has been relieved of his duties.

By Catholic Online (NEWS CONSORTIUM)

Pope Francis dismissed a Paraguayan bishop accused of protecting a priest suspected of sexually abusing young people this week. Bishop Rogelio Ricardo Livieres Plano of Ciudad del Este has been relieved of his duties. The Vatican said Pope Francis had taken the ... continue reading


Was it really a meteorite? NASA scientists remain skeptical about Nicaraguan crater Watch

Image of A meteorite from a passing asteroid may have caused a crater in Nicaragua on the evening of September 6.

By Catholic Online (NEWS CONSORTIUM)

A meteorite crashed in Managua, Nicaragua, late on the evening of September 6, causing a loud explosion and leaving a crater 39 feet across, Nicaraguan government officials reported. LOS ANGELES, CA (Catholic Online) - Nicaraguan spokeswoman Rosario Murillo said ... continue reading


These 14th century artifacts are headed back to their proper home Watch

Image of 14th century artifacts from Colombia being displayed in a Spanish museum.

By Catholic Online (NEWS CONSORTIUM)

Spain has returned 691 indigenous artifacts to Colombia, which were seized during a police operation 11 years ago LOS ANGELES, CA (Catholic Online) - Most of these ceramic items are of huge cultural and archaeological value, and date to around 1400 BC. They had been ... continue reading


Is the Islamic State - In Mexico? Officials deny 'car bombing' rumors Watch

Image of While it's nightmarishly plausible - and there have been warnings from the international community to the United States as such, the Department of Homeland Security has denied claims on from a watchdog group that the Islamic State of Iraq and al-Sham (ISIS) has militants stationed in Juarez, Mexico.

By Catholic Online (NEWS CONSORTIUM)

While it's nightmarishly plausible - and there have been warnings from the international community to the United States as such, the Department of Homeland Security has denied claims on from a watchdog group that the Islamic State of Iraq and al-Sham (ISIS) has ... continue reading


Deadly silence: 92,000 Columbians remain missing Watch

Image of Around 4,000 graves have been discovered and 5,000 bodies found, following the confessions of scores of paramilitary warlords.

By Anastasia Moloney, Thomson Reuters Foundation

More than 92,000 Colombians have disappeared during 50 years of war and at the hands of drug gangs, and the government needs to step up efforts to find missing people, the Red Cross said. (Thomson Reuters Foundation) - Every day nine people are reported missing ... continue reading


GOING DIGITAL: Ecuador plans digital currency Watch

Image of Some believe that Ecuador's new digital currency will eventually lead to the nation's abandonment of paper and coin currency altogether - i.e., the United States dollar.

By Catholic Online (NEWS CONSORTIUM)

In a bold move into the 21st Century, the South American nation of Ecuador is now planning digital currency. Some believe this will eventually lead to the nation's abandonment of paper and coin currency altogether - i.e., the United States dollar. LOS ANGELES, ... continue reading


California Governor: 'You're all welcome,' even illegal immigrants Watch

Image of California Governor Jerry Brown meets with Mexican President Enrique Pena Nieto.

By Catholic Online (NEWS CONSORTIUM)

California Governor Jerry Brown in a speech this week declared that all Mexicans, including illegal immigrants, are welcome in California. While introducing Mexican President Enrique Peña Nieto, who said America is "the other Mexico," Brown "spoke about the ... continue reading


All Americas News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Exodus 23:20-23
20 'Look, I am sending an angel to precede you, to ... Read More

Psalm, Psalms 91:1-2, 3-4, 5-6, 10-11
1 You who live in the secret place of Elyon, spend ... Read More

Gospel, Matthew 18:1-5, 10
1 At this time the disciples came to Jesus and said, ... Read More

Saint of the Day

Saint of the Day for October 2nd, 2014 Image

St. Leger
October 2: Leger was raised at the court of King Clotaire II and by his ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter