Five member states agree to help US crack down on tax evasion

9th February 2012

The US has won the support from five EU member states in an effort to identify offshore accounts held by Americans, the New York Times reports.

France, Germany, Italy, Spain and Britain agreed "to intensify their cooperation in combating international tax evasion" in return for Washington will "reciprocate in collecting and exchanging" information about US accounts held by residents in those countries.

The paper says the agreement concerns the foreign account tax compliance act, which helps the US internal revenue service identify hidden accounts and other assets held overseas by Americans.

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