The National Treasury and the SA Revenue Service (Sars) were discussing entering into an inter-governmental agreement (IGA) with the US on a foreign tax compliance act, Sars said on Thursday. “The wording of a draft IGA has been agreed and will be signed at governmental level soon. When signed, the US Treasury will view South African financial institutions as being generally compliant with the Foreign Account Tax Compliance Act.” Once in effect, relevant institutions in South Africa would report required information to Sars, which would exchange data with the US under the legal framework provided by the double taxation agreement between both countries, Sars said. “The first reporting period is July 1, 2014 to February 28, 2015, and the information will have to be submitted to Sars by June 2015.” The revenue service said South Africa was playing a leading role globally in moving towards greater transparency and exchange on information in tax matters. This would ensure greater trust and fairness in the international system. – Sapa