Nov 2014 Financial News

Barbados signs FATCA agreement with US to improve international tax compliance

Nov 18, 2014

BRIDGETOWN, Barbados, Tuesday November 18, 2014, CMC – The government of Barbados, on Monday signed the Foreign Account Tax Compliance Act (FATCA) with the United States and pledged the implementation of global standards for the supervision and regulation of the international business and financial services sector.

The agreement was signed by Minister of Industry, International Business, Commerce and Small Business Development, Donville Inniss and US Ambassador to Barbados, Dr. Larry Palmer.

“The signature of this FATCA agreement represents one of the salient pillars in the transformation of how we as an international business and financial services centre interact not only with other jurisdictions on the sharing of vital information, but is an indication of the transformation of how we interact with our clients and apply greater due diligence in an ever-changing environment,” Inniss stated.

He however cautioned that the signing was not a deviation from Government’s belief that “businesses and investment must be allowed the flexibility to thrive”.

Palmer welcomed Barbados’ commitment to intensifying its cooperation with the U.S. to improve international tax compliance, and hailed the signing as “a significant step forward in efforts to work collaboratively to combat offshore tax evasion”.

“The FATCA introduces reporting requirements for foreign financial institutions with respect to certain accounts held by U.S. taxpayers. Because access to information from other countries is critically important to the full and fair enforcement of domestic tax laws, information exchange is a top priority for the United States.

“By working together to detect, deter and discourage offshore tax abuses through increased transparency and enhanced reporting, we can help to build a stronger, more stable and accountable global financial system,” Palmer stated.

The signing is the culmination of discussions between Barbados’ Task Force and Negotiating Team, chaired by Secretary to the Board of the Central Bank, Elson Gaskin, and the U.S. Treasury Department.

Source:
Caribbean 360
Tuesday November 18, 2014

http://www.caribbean360.com/business/barbados-signs-fatca-agreement-with-us-to-improve-international-tax-compliance#ixzz3Jcadtzxp