Newsletter-21

394 NEWSLETTER 2016 of Information (“FATCA 7 Agreement”) was signed on 29.07.2015 based on the exchange of information provision of the PDTA entered into force between the USA and Turkey. The FATCA Agreement en- tered into force by the Law numbered 6677, published on the Official Gazette dated 16.03.2016 and numbered 29655. The FATCA is a US regime aimed at US taxpayers with offshore accounts and investments. To avoid withholding taxes on certain US- connected investments, specified types of non-US entities, such as fi- nancial institutions, must disclose to the US Internal Revenue Service (“IRS”) information about their US accounts and the holders of such accounts 8 . The scope of the FATCA Agreement differs from other TIEAs since it only foresees the automatic exchange of solely the US taxpayers with offshore accounts and investments. Further, the FAT- CAAgreement introduces novel reporting obligations and procedural rules that differentiate it from other exchanges of information systems. Conclusion Under Turkish legislation, exchange of tax-related information is regulated under norms, which are both domestic and international in character. The TPC provides for the exchange of information as provided by the international agreements duly entered into force. As for the international agreements, there are multilateral and bilateral agreements that are currently in force, or are expected to be ratified. The OECD is a leading force in the prevention of tax secrecy and ensuring transparency, with multiple model conventions, and forums and treaties dedicated thereto. Although Turkey has not yet ratified the Convention, it is an active member of the Global Forum. As for bilateral treaties, Turkey is a State Party to a considerable number of PDTAs; however, it concluded TIEAs, which are deemed more effec- tive in preventing tax secrecy, with only two states. 7 FATCA stands for “Foreign Accounts Tax Compliance Act”, a legislation enacted in the USA on 18.03.2010 which aims to achieve cooperation with the financial instiutions residing outside US to detect the US -taxpayers’ income deposited in off-shore accounts. 8 KPMG, Automatic Exchange of Information, https://www.kpmg.com/Global/ en/IssuesAndInsights/ArticlesPublications/frontiers-in-tax/Documents/the-com- mon-reporting-standard.pdf, p. 9.