Russia and the United States agreed on a draft for the exchange of tax information under FATCA

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Russia and the United States agreed on a draft of the bilateral cooperation to implement the provisions of the U.S. Foreign Account Tax Compliance Act  (FATCA), told the head of the Department of Tax and Customs Tariff Policy of the Russian Finance Ministry Ilya Trunin.

FATCA, which is to enter into force for Russia on 1 July 2014, is designed to reduce U.S. tax losses due to offshore schemes used by the Americans for tax evasion. The law requires foreign banks to provide information on the accounts of American clients to the IRS.

The document, according to Trunin, was agreed on and now the Russian government is to decide on the appropriateness of its conclusion. If this happens, the Russian banks wil not have to provide information to the U.S. tax authorities individually, the Federal Tax Service will deal with it.

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