site.btaFinance Minister Defends in Parliament Ratification of Non-reciprocal Agreement between Bulgaria, United States under FATCA Law

Finance Minister Defends in Parliament Ratification of Non-reciprocal Agreement between Bulgaria, United States under FATCA Law

Sofia, March 27 (BTA) - Non-ratification of the Agreement
between Bulgaria and the United State under FATCA will have a
negative impact on Bulgarian financial institutions, Finance
Minister Vladislav Goranov said at Parliament's Question Time on
Friday.

FATCA (Foreign Account Tax Compliance Act) was passed by the US
Congress in 2010. It allows American tax authorities to fight
against trans-border tax evasion by citizens of that country by
means of offshore accounts and financial assets abroad.

In the beginning of 2014 Bulgaria was informed that the US
authorities have decided not to conclude a reciprocal agreement
with Bulgaria and offered a non-reciprocal version. The reasons
for refusal of a reciprocal agreement were outlined in a
confidential note received at the Foreign Ministry and the
Finance Ministry in April 2014, Goranov said. He also suggested
that Parliament classify its meeting in order to acquaint itself
with the note.

At that time, the Bulgarian financial institutions declared that
there is no alternative to the conclusion of an international
agreement, be it reciprocal or not. On April 16, the Council of
Ministers approved a draft non-reciprocal agreement. On April
23, agreement on the texts of the agreement was reached and
Bulgaria was included in the list of participating
jurisdictions, which guarantees the security of Bulgarian
financial institutions, Goranov said.

The intergovernmental agreement was signed on December 5, 2014,
and is awaiting Parliament's ratification.

Left MP Roumen Gechev said Bulgaria is the only post-socialist
country to be humiliated by signing a non-reciprocal agreement
with the United States concerning the provision of information
about the investments of natural and legal persons. Countries
such as Georgia, Armenia and a number of others have signed
reciprocal agreements, he said. The reasons for the note to be
classified are not serious and Bulgaria only wants to be treated
as an EU Member State, he declared.