The Ministry of Finance has agreed with the U.S. government on an agreement on automatic exchange of financial information between tax authorities. The agreement involves an extension of the exchange of tax information that is already occurring between countries today. Agreement is based on reciprocity, and the Norwegian tax authorities will automatically receive information about Norwegian taxpayers account issues in U.S. banks and other financial institutions.
– The agreement helps to fight and prevent tax evasion, and is a step towards automatic exchange of tax information globally. The agreement will also have positive effects for Norwegian taxpayers’ compliance with Norwegian tax rules, tax authorities and facilitate the exercise of control, says Johnsen.
The agreement builds on the U.S. FATCA legislation (Foreign Account Tax Compliance Act), and implies that Norwegian financial institutions to report information to the Norwegian tax authorities rather than the U.S. government.
The agreement will enter into force upon an exchange of notes after the necessary procedures are completed, including the Parliament’s consent.