Aug 2016 Financial News

Imbert signs agreement to share tax info with US

Aug 22, 2016

Finance Minister Colm Imbert and US Ambassador John Estrada yesterday signed an agreement that will pave the way for the implementation of the Foreign Account Tax Compliance Act (FATCA) enacted in the United States of America in 2010.

Imbert signed on behalf of T&T, while Ambassador signed on behalf of the US. 

The agreement they signed was a Model IA Inter-Governmental Agreement (IGA), which is designed to improve international tax compliance through mutual assistance in tax matters based on an effective infrastructure for the automatic exchange of information. 

FATCA is part of US federal Law that requires American citizens and residents—both within and outside the US—to report on their non-United States financial accounts.

In a statement yesterday, the Ministry of Finance described the signing of the IGA as “another milestone in the relationship between both countries on tax matters.” The ministry said the signing brought to an end about three years of negotiations between the two countries on the Agreement. 

“The signing is also timely as it was completed before September 30 deadline set for the exchanging of information between both countries.

T&T and the US will now move to bring the IGA into force. This would allow for the automatic exchange of information between both countries and also ensure that foreign financial institutions, including local banks and insurance companies, will not be subject to a 30 per cent withholding tax.

To bring the IGA into force, the Minister of Finance will take to the Parliament, the necessary legislation, among other things, to provide for the automatic exchange of information by the Board of Inland Revenue to the United States Inland Revenue Service.R03;R03;

Source:
Trinidad Guardian
Saturday August 20, 2016

http://www.guardian.co.tt/business/2016-08-20/imbert-signs-agreement-share-tax-info-us