Providing Taxpayers’ Info
Banks allowed to sign deal with US IRS
Bangladesh Bank on Thursday allowed local banks to sign agreement with the United States Internal Revenue Service if they (local banks) hold US taxpayers’ bank accounts.
A BB circular issued on the day said according to the Foreign Account Tax Compliance Act enacted in 2010 by US, the financial institutions across the globe have to report to the US IRS about accounts held by US taxpayers or by foreign entities in which US taxpayers hold a substantial ownership interest.
‘As the Bangladesh government is yet to sign an intergovernmental agreement with US, these obligations can be discharged by individual bank by registering and signing “participation agreements” with the IRS,’ said the circular.
It also said the National Board of Revenue also gave its consent to the matter.
Banks have to get written consent from their customers before reporting to the IRS under such agreement as disclosure of clients’ information is prohibited in Bangladeshi law, the BB said.
‘Banks should communicate with the existing customers well in advance of executing participation agreement with the IRS enabling the accountholders to comply with reasonable requests for information or to provide acceptable documentation to meet the obligations,’ said the circular.
-With New Age input
