Georgia-US deepen ties to avoid tax evasion
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Georgia and the United States (US) are deepening their bilateral relationship to improve international tax compliance and ensure all citizens pay their appropriate taxes when living abroad.
Today Georgia signed an Inter-Governmental Agreement (IGA) with the US on tax compliance and mutual understanding, which encompasses implementation of the Foreign Account Tax Compliance Act, commonly known as FATCA.
Following the signature Georgia must report information regarding US account holders in Georgia to the US Internal Revenue Service (IRS) in order to eliminate cases of tax evasion.
The agreement will establish a framework to assist Georgian financial institutions in reporting certain financial account information required by the US’ FATCA.
"Georgia joined those 80 countries who have already signed this agreement with US. Georgian banks were waiting for the day when Georgia would sign the document. This document enables Georgian banks to operate on US market through the US bank’s effort," said Georgia's Finance Minister Nodar Khaduri.
The agreement was signed by Georgia’s Finance Minister Nodar Khaduri and US Ambassador to Georgia Richard Norland.
From September 18, when Parliament of Georgia ratified an agreement on Foreign Account Tax Compliance Act (FATCA) with the US.
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The investigation service of Georgia’s finance ministry has charged an individual for manufacture and use of forged tax documents and evasion of “particularly large amounts” of tax, the state body said on Tuesday.