The Tribune

By NATARIO McKENIZE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Ministry of Financial Services has finalised its proposed revisions to the ‘language’ of the Foreign Account Tax Compliance Act (FATCA) agreement (IGA) that it hopes to sign with the US Treasury, a Cabinet minister said yesterday, touting this nation as being among the first to issue a tender for the development and implementation of a FATCA reporting system.

Ryan Pinder, minister of financial services, said:
 “We have finalised what we would like to see in the language of the IGA in our approach to it. We see the IGA as a FATCA implementation agreement, not this global policy of tax information exchange.

“We have made some suggestive revisions to the text to negotiate with the US authorities on. We hope to get regional support in that, so when we do that we have the support of CARICOM; 14 different countries advancing a singular message on language reform.

“We want to make sure that the agreement serves its purpose and not another purpose. We hope to be in a position to advance negotiations on the language to the agreement with the IRS in November.
 Mr Pinder added that a Request for Proposal had been 
issued for companies to help set up the necessary FATCA reporting infrastructure within the Ministry of Finance.

“That is a very significant aspect, building the infrastructure for Government to comply with obligations under the IGA,” Mr Pinder said.

“From what I can tell we are one of the first jurisdictions to advance an RFP in that regard. I know there are regional competitors looking at what we are doing with the mindset to copying it.

“November 11 is the final submission date. The industry is very excited about that. The accounting firms are very active in that.”

The Government has chosen a Model I Intergovernmental agreement (IGA) with the US Treasury for FACTA compliance.

FATCA, which was brought into law in March 2010, is a set of rules set out by the US Internal Revenue Service (IRS) designed specifically to limit tax evasion by US persons living abroad.

Under FATCA, US taxpayers holding financial assets outside the US must report those assets to the IRS or face penalties. FATCA will also require foreign financial institutions to report directly to the IRS certain information about financial accounts held by US taxpayers, or by foreign entities in which US taxpayers hold a substantial ownership interest.