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Foreign Accounts Tax compliance Act and American Leadership in the Campaign against International Tax Evasion: Revolution or False Dawn?

Citation

Eccleston, R and Gray, F, Foreign Accounts Tax compliance Act and American Leadership in the Campaign against International Tax Evasion: Revolution or False Dawn?, Global Policy, 5, (3) pp. 321-333. ISSN 1758-5880 (2014) [Refereed Article]

Copyright Statement

Copyright 2014 University of Durham and John Wiley & Sons, Ltd.

DOI: doi:10.1111/1758-5899.12122

Abstract

Promoting tax transparency to address international tax evasion is a central issue on the global policy agenda with G8 leaders recently declaring that ‘tax authorities across the world should automatically share information to fight the scourge of tax evasion’. This growing commitment to addressing international tax evasion has a long provenance. Recently, the little-known US Foreign Accounts Tax Compliance Act (FATCA), enacted in 2010, has played a key role in this effort/the international effort. The rapid evolution and diffusion of FATCA has the potential to make significant inroads into international tax evasion and has been lauded by proponents of improved offshore tax compliance. Yet FATCA is based on a ‘unilateral’ model, imposed by Washington on financial institutions operating in the US, which critics argue undermines its prospects of providing an effective basis for international tax cooperation and governance. This article provides an empirical account of the origins and evolution of FATCA, arguing that while FATCA is likely to increase the capacity of the US government to tax offshore holdings of its citizens, its ‘unilateral’ origins and design may limit reciprocity within the international tax regime. The article concludes with an assessment of the likely consequences of FATCA in terms of its impact on both international tax evasion and on global governance more broadly.

Item Details

Item Type:Refereed Article
Research Division:Studies in Human Society
Research Group:Policy and Administration
Research Field:Policy and Administration not elsewhere classified
Objective Division:Law, Politics and Community Services
Objective Group:International Relations
Objective Field:International Relations not elsewhere classified
Author:Eccleston, R (Professor Richard Eccleston)
Author:Gray, F (Miss Felicity Gray)
ID Code:90468
Year Published:2014
Web of Science® Times Cited:4
Deposited By:Social Sciences
Deposited On:2014-04-07
Last Modified:2017-11-27
Downloads:0

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