Dealing with FATCA
BY ALB, Ranajit Dam |
The U.S. Foreign Account Tax Compliance Act (FATCA), approved in 2010, is set to take effect in July this year, and major offshore financial centres have begun entering into cooperation pacts. The governments of Guernsey, Jersey, the Isle of Man and the Cayman Islands have signed inter-governmental agreements (IGAs) with both the U.S. and the UK, while the BVI has signed a FATCA- type IGA with the UK and is negotiating an IGA with the U.S. Ranajit Dam investigates the potential impact of these agreements on offshore financial centres.