Turkey, US to sign financial information exchange deal: Minister

Turkey, US to sign financial information exchange deal: Minister

Turkey, US to sign financial information exchange deal: Minister

CİHAN photo

Turkish Finance Minister Mehmet Şimşek said the Turkish government and the United States administration will sign a deal on July 23 which will make financial information exchanges possible between the two countries, as a part of the efforts to fight against tax evasion, as reported by Anadolu Agency. 

“With the agreement, some information of American bank account holders in Turkish financial institutions will be given to the U.S. and the same will be the case for the information about Turkish account holders in the U.S.-based financial institutions,” he said. 

Şimşek said various agreement models were designated by the U.S. regarding the exchange of financial information for tax collection purposes by considering the differences in the policies and judicial systems between countries. 

In this vein, two models were prepared, he said, adding Model 1 was based on the reciprocity rule and Model 2 was for the delivering of information to the U.S. 

The U.S. has signed a Model 1 deal with 61 countries and a Model 2 deal with seven countries so far, Şimşek noted. 

A Model 1 agreement between Turkey and the U.S. will be signed on July 23, he noted. 

In line with the deal, Turkish financial institutions will collect information about American account holders to deliver to the Income Administration Directorate and then to the U.S., he said. 

Accordingly, the Internal Revenue Services (IRS) of the U.S. will collect data about the Turkish account holders in American financial institutions to eventually report to Turkey, he added.

Şimşek said the deal will help the two countries to overcome tax evasion more effectively.