U.S., Israel Reach FATCA Agreement; Information Exchange Broadens
May 1 —The U.S. has reached an intergovernmental agreement with Israel to exchange information on account holders under the Foreign Account Tax Compliance Act, the Treasury Department said—a move that practitioners said symbolizes growing global transparency and efforts to crack down on tax evasion.
The agreement is “an important link in the U.S. network of IGAs, especially in light of the significant cross-border flow of investment income between the two countries and the relatively high number of dual residents and citizens,” John Harrington, a partner with Dentons, told Bloomberg BNA May 1.
A Treasury spokeswoman told Bloomberg BNA May 1 the two countries have reached a Model 1 agreement in substance under FATCA. Israel now appears on the Treasury's growing list
of jurisdictions that have either signed IGAs or agreed to them in substance. The list numbered 56 late May 1.