******** Iraq is seeking to reciprocate in accordance with the law leaning back {}

5/8/2014 0:00

After the entry into force early last month


BAGHDAD - Mustafa al-Hashemi

After that the income tax law to comply with the U.S. Foreign Accounts (leaning back) came into effect at the beginning of last month in more than 50 countries in the world that identifies the importance of the Iraq deal Similarly investigation of the principles of transparency, tax and banking between the two countries.

In this regard, Dr. Essam Mahouelle that Iraq is seeking to deal with the tax law to comply with new U.S. which is known as "leaning back" Similarly to achieve transparency on the subject of taxes after the development expertise of staffs working in the tax sector.

Known as "Alvta" It is an abbreviation for Foreign Account Tax Compliance Act as measures limiting U.S. citizens evade paying taxes to the government, has been working out recently in more than 50 countries in the world.

He Mahouelle told (morning) that taxes in the United States are too expensive as well as higher wages for manpower there, what makes some investors and owners of commercial interests are looking for the establishment of projects, check them profits in the countries where the proportion of taxes too much about taxes the United States and that where the cost is less manpower.

He pointed out that this law primarily serves the American side, where he probably came as a natural result to cover the deficit in the U.S. balance of payments prompted to take this step to alleviate the effects of the global financial crisis.

He explained that the Central Bank of Iraq face of the banks to work with this law on the grounds that it achieves transparency and allows reciprocity where Iraq could prosecute tax evaders who have projects or financial interests to learn the State also comes to curb money laundering, noting that the guidance included approval to open bank accounts to holders of U.S. citizenship with private banks.

He stressed that this agreement serves the American side too much compared to some of the banking facilities provided by the United States of the member states in this Agreement and by including Iraq.

 Noting that the implementation correctly requires a banking system newly coupled with a sector tax and successful working mechanics of modern facilitate the collection of taxes from covered out, what requires the strengthening of the ties of cooperation in order to help the country to keep pace with modern technologies in the fields of banking and taxation.

Economists and analysts say that the application of this law or agreement would be tantamount to acceptance that operates banks in those countries as an agent of taxes in the pursuit of American citizenship, the U.S. bank to reveal their financial interests, as well as that it is a violation of banking secrecy policy for banks in the world.

On the other hand sources said that the U.S. economic application of the law will not pose a threat to Arab financial institutions, as the rejection of these financial institutions to the law will lead them to the local contraction, where you will lose the ability to deal with foreign counterparts, or even with local financial institutions that comply with the law.

Some states have decided to make the deal banks with the IRS the U.S. directly, what makes its financial institutions subject to "Alvta", or face sanctions that will be taken by the United States against the banks, the countries that do not reveal private accounts, the Americans have to deduct 30 percent of their accounts in banks U.S. and to prevent the final of the handle.

It is noteworthy that the U.S. tax law compliance "leaning back," passed by the U.S. Congress in March 2010, as part of the Employment Act incentives to restore employment. And to be under this law to taxpayers who own financial assets outside the United States, to submit a report statements of those assets for the benefit of domestic revenues of U.S..


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