Business
Push in Jamaica for urgent discussion of new US tax law – FATCA
Foreign institutions that do not enter into an agreement with the IRS will be subjected to a 30 percent gross withholding penalty on certain types of payments from US-sourced income, such as gross proceeds from the disposition on US securities, dividends and pass-through payments.
Non-compliance with FATCA could result in the termination of correspondent banking relationships in the US and internationally.
Many countries across the globe have publicly blasted the FATCA initiative, but it is unclear what the official response from the Jamaican Government will be.
What is certain is that local financial institutions feel isolated. “What the US have done is bypass normal bilateral arrangements and gone straight to the financial institutions,” said Jarrett. “I believe our government will have to come up to speed very quickly.
