Australia joined FATCA.

05.05.2014 Australia and United States of America signed intergovernmental agreement on 28th of April, 2014 in order to improve compliance with international tax legislation and enforcement of FATCA. Agreement was concluded in form of the Model Agreement №1, according to which Australian financial institutions are obliged to disclose and submit information about U.S. citizens’ accounts to the relevant domestic agency of Australia. The domestic agency is required to disclose and submit this data to IRS of USA. The Agreement enters into force since the 1st of July 2014.

Expert’s opinion

United States as a gigantic octopus dissolves its tentacles all around the world. Almost every European financial institution is required to disclose and to submit information about its U.S. citizens accounts. It seems that only a desperate American will open account overseas without properly declaring it to IRS. Sooner or later all regions and countries are going to join FATCA. And there is not many options left for them: to sign or to have troubles with their accounts.

Irina Lomakina ( Director of Moscow Office, Honest&Bright. )