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Georgia takes responsibility to inform U.S. over its residentsí financial assets

By Messenger Staff
Tuesday, September 22
The Georgian side has taken the responsibility to inform the Revenue Office of the United States (U.S.) concerning the financial assets of the American residents in Georgia.

From September 18, since the Parliament of Georgia ratified an agreement on Foreign Account Tax Compliance Act (FATCA) with U.S, all Georgian financial institutions, commercial banks, insurance companies and others are obliged to send information over the assets of American physical and legal entities to the relevant bodies of the U.S.

Through the Act, the United States tries to prevent tax avoidance.

The Georgian side signed the memorandum over FATCA in July 2010. Now the memorandum is ratified and envisages the putting of amendments in ten different Georgian laws.

Seventy-three countries worldwide have already signed the memorandum with the United States over the issue.

The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010.

FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts and focuses on reporting: By U.S. taxpayers about certain foreign financial accounts and offshore assets; by foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest.

The objective of FATCA is the reporting of foreign assets; withholding information can result in severe penalties for American citizens.