Finland has signed a tax evasion agreement with United States as part of its efforts to improve international tax compliance and to implement FATCA.
Under the agreement, tax information of citizens of the both countries will be updated and openly shared with each other annually, reported Finnbay.
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As part of the agreement, Finland will receive data of Finnish residents’ accounts in the US from the US government each year automatically.
The agreement will mainly target wealthy people who hide their assets in offshore tax havens and will also affect ordinary people as they will have to clarify their extra income to the governments.
Mark Mazur, assistant secretary for tax policy at the US Department of the Treasury, said: "By working cooperatively with foreign governments and financial institutions, we are intensifying our ability to combat tax evasion while minimizing burdens on financial institutions."
Both the countries will start exchanging information with effect from 2015.
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By GlobalDataBesides Finland, 49 other countries across the world have also signed agreements with the US government to implement the Foreign Account Tax Compliance Act (FATCA).
