Automatic Exchange of Information Agreements

This collection brings together the UK's Automatic Exchange of Information Agreements (FATCA) aiming to combat tax evasion.


  1. Documents

International agreements to improve tax compliance

The Foreign Account Tax Compliance Act (FATCA) aims to combat tax evasion by US tax residents using foreign accounts. It includes certain provisions on withholding taxes and requires financial institutions outside the US to pass information about their US customers to the US tax authorities, the Internal Revenue Services (IRS). Failure to meet these new reporting obligations would result in a 30% withholding tax on the financial institutions.

The FATCA provisions impose new and substantial burdens on UK businesses in identifying US taxpayers, and registering and reporting information to the IRS. Significantly for UK institutions the Data Protection Act precludes UK businesses from passing the required information to the US.