Cayman government signs anticipated US FATCA
(CNS Business): Cayman became the first overseas territory to sign up for automatic exchange of tax information with the United States on Friday. Building on what local officials described as “more than a decade of cooperation in tax matters”, Cayman has signed the US FATCA. It also signed a new tax information exchange agreement (TIEA) with the US that replaces the original TIEA signed in 2001. The new TIEA stipulates the legal channels through which information will be automatically exchanged. CIG has signed a FATCA Model 1 intergovernmental agreement which will see financial institutions in Cayman report information on accounts and entities that are substantially owned by US citizens to the local government, which will then relay the information to the IRS.
Category: Business
Okay, but even the top accounting firms can it answer this….how? I'm america so do I send my compliance forms to my local banks? We all hear the agreement now someone show us the reporting mechanism.( or, there isn't one? Now what?)
As a US citizen, you continue (as before) to have an obligation to file the required returns with and pay the appropriate US taxes to the IRS. FATCA and the IGA have no impact on your existing obligations. However what is new is that any financial institutions in Cayman with which you deal will themselves have various reporting obligations under FATCA and the IGA with respect to your accounts.
Most likely you won't need to do much. Your bank will ask for your US Tax Identification Number, if they don't already have it, and also that you sign a wavier giving up any privacy or secrecy rights your country provides.
Amusing reading can be found here
So much for the Compass poll……..