FACT Lauds FATCA Implementation
Major Step Forward in Combatting Offshore Tax Evasion
Washington – As the Foreign Account Tax Compliance Act (FATCA) takes effect, the FACT (Financial Accountability and Corporate Transparency) Coalition is welcoming its implementation and with it a new era in combatting offshore tax evasion.
FATCA was passed in 2010 and requires foreign financial institutions to report to the IRS on their U.S. customers holding over $50,000. The law was enacted to make it harder for taxpayers to hide assets in offshore accounts and shell corporations.
The Congressional Joint Committee on Taxation (JCT) has estimated that FATCA’s anti-tax evasion measures could raise $8.7 billion over their first decade of implementation. When one stops to consider that the U.S. loses an estimated $100 billion annually due to offshore tax abuses, the virtues of FATCA become exceedingly clear.
To date, 77,000 financial institutions and nearly 100 countries have taken steps to comply with FATCA. Even more significant is the compliance of some counties with long histories of financial secrecy, such as Luxembourg and Switzerland.
“FATCA is a major step forward in transparency,” said Nick Jacobs, FACT Communications Director. “It is also a powerful sign that all taxpayers are equal and every American citizen has the responsibility to help maintain the freedoms and privileges we all enjoy, no matter where you live.”
Founded in 2011, the Financial Accountability and Corporate Transparency (FACT) Coalition unites civil society representatives from small business, labor, government watchdog, faith-based, human rights, anti-corruption, public-interest, and international development organizations. We seek an honest and fair corporate tax code, greater transparency in corporate ownership and operations, and commonsense policies to combat the facilitation of money laundering and other criminal activity by the legitimate financial system.