Business
FATCA: Jamaica hinting on agreement with the US
Jamaica is now the the latest jurisdiction to raise the possibility of concluding a bilateral agreement with the United States to implement the Foreign Account Tax Compliant 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.
(More: Caribbean banks concerned about potential impact of new US legislation)
This Act is of particular significance to the financial services sector in Jamaica and the Caribbean, as it places an obligation on foreign or non-US financial institutions to report to the US Internal Revenue Service (IRS), information about financial accounts held by US taxpayers, including entities in which the US taxpayer holds a significant ownership interest.