SYDNEY, April 28 Australia signed a
tax-information sharing agreement with the U.S. Treasury
Department on Monday ahead of a new U.S. law that will crack
down on offshore tax avoidance.
The accord, one of a number of so-called intergovernmental
agreements (IGA) between Washington and individual countries,
comes ahead of the implementation in the United States in July
of the Foreign Account Tax Compliance Act (FATCA).
It reduces the overall burden on Australian business,
minimises costs by simplifying due diligence requirements and
broadens arrangements between the Australian Tax Office and the
U.S. Internal Revenue Service.
Australian banks welcomed the agreement.
"This is an essential development in facilitating capital
flows into and out of Australia while having best practice
regulation," Steven Münchenberg, Chief Executive of the
Australian Bankers' Association said.
(Reporting by Swati Pandey; Editing by Simon Cameron-Moore)