Bangladeshis in US will now have to pay tax

Bangladeshis, holding Green Cards in the US, will now have to pay tax on money they have in their accounts in Bangladesh under a new US law designed to crack down on offshore tax dodging. Approved in 2010 after a tax-avoidance scandal involving a Swiss bank, the Foreign Account Tax Compliance Act (FATCA) requires most foreign banks and investment funds to report to the Internal Revenue Service (IRS) information about US customers' accounts worth $50,000 or more. The Bangladesh Bank has directed all commercial banks and financial institutions to comply with the law. The law aims at realising tax from US citizens and Green Card Holders with Tax Identification Number (TIN) on their income outside the United States. In a circular, the Bangladesh Bank has said banks and financial institutions will have to provide information to the IRS if any US citizen or Green Card Holder has accounts with them. The law will be enforced from July 1 this year, according to a news agency.

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