Jerusalem – The U.S. Treasury Department and the Israeli Ministry of Finance have reached an agreement to implement an act that would report the financial accounts of Americans living in Israel to the U.S.
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A press release published by the Israeli Ministry of Finance reports that FATCA (Foreign Accounts Tax Compliance Act) is a tax enforcement act that will allow Israel to send reports of Americans’ financial holdings in their country to the U.S.
Information provided to the U.S. Treasury will include data about financial accounts held in Israel by U.S. citizens or Green Card holders living in the U.S. who have assets in Israel. FATCA will also allow the U.S. to report to Israel the income and other financial information of Israelis living in the U.S.
Information will be provided to the U.S. tax authorities annually. Reports will also include information on the number of accounts whose owners refused to provide information and the total value of those accounts. Financial institutions that do not adhere to FACTA will be subject to 30 percent withholdings from U.S. income.
The agreement will assist the U.S. in finding tax evaders who have not properly reported financial assets from overseas.
So far, 28 countries have signed the agreement, including Britain, Canada, Denmark, France and Germany.