Business
Caribbean accountants to meet on new Tax rules
The Foreign Account Tax Compliance ACT (FATCA) will be a major theme of the Institute of Chartered Accountants of the Caribbean’s (ICAC) 30th Anniversary Conference being held here in June.
The United States Internal Revenue Service (IRS) enacted the legislation in 2010 to combat tax evasion by US citizens living abroad.
The act requires offshore foreign financial institutions to directly report US citizens’ financial assets exceeding US$ 50,000 to the IRS. Foreign financial institutions are required to enter into the “special agreement” with the IRS by June 30, 2013.
Erwin Southwell, chairman of the ICAC Antigua & Barbuda branch explained, “It is an issue that is going to affect the way a lot of companies and our banks operate, especially when dealing with American citizens.”
Southwell also spoke of the need for Antigua & Barbuda to be prepared for the act’s implementation.
“If we have financial institutions with American citizens holding significant bank account balances, there can be quite severe penalties in the event that certain things are not reported.”
ICAC will apprise conference participants of the processes and ramifications of the act.
