LatinNews Daily Report - 02 October 2014

Brazil: On 23 September Brazil’s finance ministry announced that it had inked a tax information exchange agreement with the US to prevent tax evasion, a longstanding demand of US companies operating in Brazil. The deal was delayed last year following the revelations that the US’s National Security Agency (NSA) had spied on Brazil’s President Dilma Rousseff, which led Rousseff to cancel a state visit to Washington in October 2013 and demand an apology from the Barack Obama administration. According to a press release by the US embassy in Brazil, the new agreement, which was necessary to meet the requirements set by the Foreign Account Tax Compliance Act (FATCA), which aims to identify financial activities of US taxpayers abroad, “will allow information on U.S. taxpayers in Brazil to be referred by financial institutions to Brazil’s Receita Federal and subsequently transferred to the Internal Revenue Service in the United States.  In turn, Receita Federal will receive information about Brazilian taxpayers’ holdings in U.S. financial institutions.  This exchange of information will be done respecting the confidentiality of information by both parties”. The two countries already have an agreement to exchange tax information, the Tax Information Exchange Agreement (TIEA), signed in March 2007 and promulgated in 2013.

End of preview - This article contains approximately 814 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial