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Germany strikes pact with U.S. to fight tax evasion
July 5, 2013 / 1:26 PM / in 4 years

Germany strikes pact with U.S. to fight tax evasion

BERLIN, July 5 (Reuters) - Germany approved new legislation on Friday that will assist the United States in cracking down on tax evasion by its citizens, joining a series of countries to strike such deals with Washington.

The new law enacts the Foreign Account Tax Compliance Act (FATCA), which went into force in the United States in 2010, and requires foreign financial institutions to tell the U.S. Internal Revenue Service about Americans’ offshore accounts worth more than $50,000.

Germany’s upper house of parliament rubber-stamped the bill after it was earlier approved by the lower house.

Britain, Denmark, Ireland and Mexico have struck such accords with the United States.

Speaking in favour of the bill, Norbert Walter-Borjans, finance minister of the opposition-governed state of North Rhine-Westphalia, said the FATCA legislation had generated momentum in Europe towards automatic information exchange and the pursuit of cross-border tax evaders.

Reporting by Alexandra Hudson; Editing by Janet Lawrence

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