Business
Britain to impose tax law similar to FATCA on Caribbean tax havens
A leaked document has revealed that Britain plans to impose its own version of the US Foreign Account Tax Compliance Act (FATCA) on its overseas territories, such as the Cayman Islands, as well as the crown dependencies of Jersey, Guernsey and the Isle of Man.
FATCA, which will come into force next year, requires foreign banks to report American account holders to the US Internal Revenue Service.
The draft UK equivalent, seen by the magazine International Tax Review, will require British tax havens to make similar disclosures about UK account holders to UK tax authorities, London’s Observer newspaper reported.
The move, which is expected to be unveiled in the chancellor’s autumn statement and come into force in 2014, will have major consequences for those trying to hide their money offshore.
