Ireland first to agree tax compliance deal with US

Ireland is the first country in the world to conclude an intergovernmental agreement with the US in an effort to improve tax compliance between the two countries, Finance Minister Michael Noonan said in his budget speech.

The Foreign Account Tax Compliant Act, “provides for the automatic reporting and exchange of information on accounts held in Irish financial institutions by US persons, and the reciprocal exchange of information on US accounts held by Irish people” the Department of Finance said.

“The main purpose of the agreement is to combat international tax evasion by preventing individuals from hiding money outside of either state in order to avoid paying tax.”