On June 2, 2014, the U.S. Treasury and the Internal Revenue Service announced further developments as the July 1 implementation date of the Foreign Account Tax Compliance Act (FATCA) quickly approaches.  In a statement, Deputy Assistant Secretary for International Tax Affairs Robert Stack said that the high level of registrations so far showed “strong international […]

1. WHAT IS FATCA? – The Hiring Incentives to Restore Employment Act, signed into US law in March 2010, includes provisions generally known as FATCA. – These provisions are intended to obtain information on assets held by US persons outside the US. i. To that end, FATCA requires financial institutions (which include UK funds) outside […]

The Mauritius Financial Services Commission has recently held a Foreign Account Tax Compliance Act workshop ahead of automatic exchange of tax information with the US by the territory’s financial institutions. In her opening comments, FSC Chief Executive Clairette Ah-Hen said the territory’s involvement in FATCA will enhance the reputation of Mauritius as a “clean and […]

DOJ program for Swiss banks can mean trouble for U.S. taxpayers with undisclosed offshore accounts – A few days ago, it was reported that a full one-third of Swiss banks (some 106) sought to join the Department of Justice (DOJ) program which offers a non-prosecution agreement to the banks that opt in, in exchange for […]

The Governments of the Crown Dependencies have today issued draft FATCA guidance as part of a consultation process. Comments are invited on the draft guidance document by 14 March 2014. It is expected that final FATCA guidance to be issued shortly thereafter. The guidance notes are the same across Jersey, Guernsey and the Isle of […]

US Foreign Account Tax Compliance Act (FATCA) – FATCA creates a new tax information reporting and withholding regime for payments made to certain ‘Foreign Financial Institutions’ (FFIs) and other ‘foreign’ persons. The definition of FFI is very broad and includes funds. Failure to report could result in 30% withholding tax being deducted from U.S. source […]

Today representatives from the governments of Guernsey, Jersey and the Isle of Man signed inter-governmental agreements with the United States in respect of the Foreign Account Tax Compliance Act. Hot on the heels of signing IGAs with the United Kingdom less than 2 months ago, the newly signed IGAs with the US will further enhance […]

The newly introduced Taxation (Implementation) (Disclosure Facility) (Jersey) Regulations 2013 provide that Jersey fund administrators and Jersey funds must make any clients that were resident in the United Kingdom for tax purposes between April 6 1999 and December 31 2013 be aware of the availability of the disclosure facility with Her Majesty’s Revenue and Customs […]