The Governments of Spain, Germany, UK, France and Italy have agreed to work together on a pilot instrument for multilateral exchange, automatic and standardized tax information. So notified last week by letter to the European Commissioner for Taxation, Customs, Anti-fraud and Audit, Algirdas Semeta, the finance ministers of the five countries, including Cristobal Montoro. The letter, signed jointly, emphasizes that "the pilot project will not only catch and deter tax evaders but also provide a broader pattern multilateral agreement."
In fact, the five countries will invite other EU Member States to join the project and "expect Europe to spearhead the promotion of a global system of automatic exchange of information." In this sense, value the action plan to combat fraud and tax evasion, announced recently by the European Commission.
The pilot project is now reported will be based on the exchange model called FATCA. In 2010, the U.S. government promoted a set of rules that are forcing financial institutions worldwide to report foreign accounts of persons and entities in that country. These standards were included in a Tax Compliance Act of foreign accounts (FATCA, in English). Spain, Germany, UK, France and Italy set a common negotiating position with the United States since mid-2012 reached an intergovernmental agreement model, which has been the basis for bilateral agreements of the five countries with the United States. In the case of Spain, the agreement with the U.S. FATCA has already been signed and is awaiting its next signature, once authorized by the Council of Ministers.
The model FATCA, the U.S. is also negotiating, in turn, with many other countries of the planet, fixed the transmission of information from financial institutions of these countries to the tax authorities, information that may be used by third countries. At the same time, the model minimizes the burdens of tax compliance for these entities.
Declaration of goods abroad, this month The Ministry of Finance and Public Administration believes that export the "FATCA exchange model" to other countries and territories would be a breakthrough. Also, would contrast information on assets and rights located abroad that since this year is mandatory declaration by taxpayers in Spain. Treasury notes that all residents in Spain are required to report by 30 April the assets and rights located abroad, the amount exceeding 50,000 euros.
Furthermore, in the letter sent to the Commissioner for Taxation, the five countries urge the further implementation of the directive on administrative cooperation and mutual assistance, which makes it obligatory exchange of information, and the effective implementation of the "most favored nation clause." This clause permits a state to benefit from the agreements reached with a third party for another country which has signed an information exchange agreement.
Filed under: http://www.theleader.info/article/38559/
Car and Motor Insurance | Spanish Home Insurance | International Money Transfers | Send Money to Spain | Spain Property | Online International Payments | Property in Spain
Costa Blanca Property for Sale | Cabo Roig Property for Sale | International Payments |