Hong Kong joins the FATCA and Global Transparency Movement

In efforts improve tax transparency and combat cross-border tax evasion Hong Kong joins in global transparency Jeffrey S. Freeman, J.D., LL.M Like a snowball rolling down the mountain, the push for global transparency is continuing to gain momentum. Countries are recognizing the advantages and need for global tax transparency in order to combat cross-border tax evasion. FATCA Now legally in force, FATCA (Foreign Account Tax Compliance Act) was created by the United States to discourage and fight the war on tax evasion. It is estimated that the U.S. economy suffers a $500 billion loss annually due to tax evasion on foreign source income and assets hidden outside the country. FATCA requires foreign financial institutions (banks, insurers, and investment funds) to send the IRS information about offshore accounts of Americans. The United States has entered into Inter-Governmental Agreements (IGAs) with 43 countries and has reached agreements in substance with an additional 58 countries. Earlier this year the count was below thirty countries, FATCA is gaining momentum. OECD With the increased global concern raised by FATCA over the use of foreign accounts to evade government taxation a group of the twenty biggest economic powers requested that the Organisation for Economic Cooperation and [...]