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foreign offshore tax avoidance by U.S citizens or residents its main objective is to combat tax evasion essentially it aims to track U.S citizens who earn money overseas and stash assets overseas in the event that U.S persons refuse to provide the required documentation financial institution May withhold tax as a result all financial institutions registered under this act must notify the U.S tax department when they see U.S citizens evading taxes consequently all fatca registered Banks report such account holders with the available information immediately this act has a direct and profound impact on U.S multinationals as well as foreign financial institutions patka ensures tax compliance at a global level it gives foreign financial institutions an opportunity to become more transparent with their tax reporting process and make it easier to comply with laws dominant countries such as India have signed the intergovernmental agreement IGA with the United States of America in order to comp