The U,S and Latvia have signed an intergovernmental agreement to promote transparency between the two nations on tax matters
The Foreign Account Tax Compliance Act (FATCA) was signed by the U.S. Ambassador to Latvia Mark Pekala and Latvian Minister of Finance Andris Vilks.
These agreements underscore growing international cooperation to end tax evasion everywhere, facilitating mutual assistance in tax matters and desire to improve international tax compliance, the U.S embassy to Latvia said in a statement.
FATCA is rapidly becoming the global standard in the effort to curtail offshore tax evasion.The United States enacted FATCA in 2010 to combat offshore tax evasion by encouraging transparency and obtaining information on accounts held by U.S. taxpayers in other countries.