Italy, France, Germany, Spain, the United Kingdom and the United States have jointly announced their intention of adopting a common approach aimed at the application of the Foreign Account Tax Compliance Act (FATCA) through bilateral agreements based on double taxation agreements.
The six countries have agreed to the objective of stepping up the fight against international tax evasion and have undertaken to identify the most suitable international and domestic tools that will ensure the automatic exchange of information between administrations and enable the financial institutions operating under US laws to avoid having to resort to contract-type individual agreements with the American revenue authorities.
The intergovernmental approach is guided by the principle of reciprocity and enables a two-way automatic exchange of information (to and from the United States). The execution of bilateral agreements is therefore expected to facilitate international tax compliance and the application of revenue laws to the benefit of both countries.
The Governments' objective is to achieve a close-knit collaboration aimed at reaching over time common standards in matters of tax return and due diligence obligations, keeping filing and requirement costs for financial institutions and other parties concerned by the application of the FATCA legislation at a minimum.
Lastly, the six countries' common intent is to be able in future to work with other countries, together with the European Union and the OECD, to adapt the FATCA legislation to a common framework for the automatic exchange of information.
The original text of the joint declaration and its translation into the Italian language are published on the website of the Ministry of Economy and Finance, www.mef.gov.it