U.S., Switzerland Sign Accord to Combat Offshore Tax Evasion

The U.S. Treasury Department said it signed a bilateral agreement with Switzerland to facilitate the implementation of the Foreign Account Tax Compliance Act.

The act, enacted by Congress in 2010 and often referred to by the acronym FATCA, targets non-compliance by U.S. taxpayers using foreign accounts, the Treasury said today in a statement in Washington.

“Today’s announcement marks a significant step forward in our efforts to work collaboratively to combat offshore tax evasion,” said Acting Secretary of the Treasury Neal S. Wolin in a statement. “We are pleased that Switzerland has signed a bilateral agreement with us, and we look forward to quickly concluding agreements based on this model with other jurisdictions.”

Switzerland is one of eight countries that have signed or initialed an intergovernmental agreement, which helps to facilitate the effective and efficient implementation of FATCA, the Treasury said.

To contact the reporter on this story: Kasia Klimasinska in Washington at kklimasinska@bloomberg.net

To contact the editor responsible for this story: Kevin Costelloe at kcostelloe@bloomberg.net

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