An invitation to study Iraq’s accession to the length Vta

An invitation to study Iraq’s accession to the length Vta

7/8/2015 0:00

Due to be debated in Parliament next September
BAGHDAD Mustafa al-Hashimi
at a time when the House of Representatives and awaits the arrival of draft legislation on the central bank to comply with US tax law (Vta) before the middle of next September, an economist called the Parliamentary Finance Committee to conduct a thorough study on officially join Iraq to this agreement being subject Michaba and needs careful and prudence on it.
defines “Alvta” which is an acronym for “Foreign Account Tax Compliance Act” as measures limiting evade US citizens from paying taxes to the Government of the United States, and entered several countries in this Convention recently.
In this regard, said the economist d. The appearance of Mohammed Saleh told the “morning” that there thousands of Iraqis are now holding US citizenship and most of them are making an income in Iraq. Some of them owns properties or a pension or other and this is a problem if approved officially enter Iraq to the Convention “Vta.”
and of due to the central bank to submit draft legislation between Iraq and the United States on tax compliance with US law (Vta) for submission to the House of Representatives in the coming period to decide before the fifteenth of September 2015 according to an earlier statement, the Ministry of Finance.
and questioned the benefit of all the Iraqi which will supply side US accounts of these citizens, it is assumed that Iraq is cooperating with the US Treasury in this regard as one of the international cooperation, noting the difficulty of controlling the accounts do not have the bank accounts in banks, as the government would be unable to bear so the burden under the circumstances taking place in the country.
He favored by banks Iraqi request for a written from customers who Iromon open an account they have no access to US citizenship, pointing out that Iraq has a strategic framework agreement with the US side, a comprehensive convention for all economic, military and administrative aspects and others, especially the financial side where Iraq has a relationship with the US Treasury, and I think they will face another problem with all countries, including Arab and not with Iraq only in the application of tax compliance with the law of the fact that There are no free migrants and dual nationality country.
In the opinion of experts that Iraq’s accession to the Vta agreement “presented by the secret violation of citizens’ accounts in local banks, calling that this law (or the Convention) came to the rescue of US Treasury heavily indebted while the Iraqi constitution allows citizens to own more than one nationality as well that this law – in their view – makes countries like collector of American taxes free of charge and without charge.
He said the benefit to the need to examine the Parliamentary Finance Committee the subject full length as well as he needs to international cooperation and financial relations with the United States accurate and detailed, indicating the need of the Iraqi reforming the tax system.
There is a need to resolve this overlap in case it is decided to join officially because he will cause a large part of the investment movement within the country and determine the responsibility of duplication calculated by the tax in this case, considering that Iraq is free of double taxation country.
Salih stressed, that the study of the subject in the Finance Committee and cooperation with the United States is important but it should be at the same time so rational as well as the Americans want to international cooperation and the protection of their interests Balmemkn I support the Finance Committee to give its opinion to this topic and orientation and dimensions being is the core in the debate on the subject and show its recommendations as a watchdog for government departments.
He added that this cooperation for the American side as cooperation in the fight against money laundering, where they are preparing input tax evasion as an introduction to money laundering and I think that legislation combating law money which recently admitted laundering will help Iraqi legislator frequently in this area.
It is worth mentioning that the Finance Minister Hoshyar Zebari had discussed with the managers of bank and insurance companies and the taxes in the Ministry of Finance General and the Director of the Iraqi Commercial Bank earlier tax compliance with the United States of America Agreement (Vta ).
According to a ministry statement issued last February that he discussed the tax compliance with the United States of America Agreement (Vta) concluded between the United States and most countries and related tax compliance of the accounts of foreign to provide tax information on people who hold US citizenship.
The economic US sources said that law enforcement 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 downturn, where you will lose the ability to deal with foreign counterparts, or even with local financial institutions that comply with the law.
Some countries have decided to make a deal banks with US IRS directly, what makes their financial institutions subject to “Alvta”, or face sanctions, which the United States will take against banks and countries that do not reveal private accounts Americans have deduct 30 percent of their accounts of US banks, and the last was prevented from dealing with them.

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