NY Times journalist, David Jolly (as well as NYT’s Brian Knowlton on related stories) — ahead of the pack on reporting the FATCA, DATCA, GATCA scenario. Can’t other journalists see it?
The Group of 20 countries called on Friday for a coordinated effort to stop international tax evasion, urging governments to systematically share bank data.
Finance ministers and central bankers of the G-20, meeting in Washington, said in a communiqué that automatic exchange of tax-relevant bank information should be adopted as the global standard.
Under an automatic exchange, governments would routinely transfer all foreign taxpayers’ data to their home governments, making it far more difficult to hide assets from the tax collector.
The impetus for the new approach is an American law, the Foreign Account Tax Compliance Act, called Fatca, requiring Americans with overseas accounts and non-American financial firms to meet tough financial disclosure requirements. In practice, Fatca conflicts with privacy laws in many countries, so Washington has been working out bilateral deals in which overseas financial institutions share that data first with their own governments for transmission to the Internal Revenue Service in Washington.