Please select a magazine category below to learn more.
The Foreign Account Tax
The Caribbean financial systems have had to put measures in place for the implementation of the United States (US) Foreign Account Tax Compliance Act (FATCA). FATCA, which was enacted in 2010 by the US government as part of provisions under the Hiring Incentives to Restore Employment (HIRE) Act, is an important development in efforts by the US to combat tax
evasion by US taxpayers with investments in offshore accounts.
This Act is of particular significance to the financial services sector in the Caribbean, as it places an obligation on foreign or non-US financial institutions to report to the US Internal Revenue Service (IRS), on information about financial accounts held by US taxpayers including entities in which the US taxpayer holds a significant ownership interest.