Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/20/2013

Cayman Islands - FATCA agreement with United States 

August 20: Representatives of the governments of the Cayman Islands and the United States in August 2013 concluded negotiations and initialed a Model 1 intergovernmental agreement (IGA), and a new tax information exchange agreement.

The agreements pave the way for automatic exchange of information under the U.S. Foreign Account Tax Compliance Act (FATCA) provisions.


Official signing of the agreements will be held as soon as possible, after which the texts will be publicly available.


As reported in a Cayman Island release, the Model 1 IGA will provide a streamline process for foreign financial institutions in the Cayman Islands to report information regarding accounts and non-financial entities substantially owned by U.S. citizens and residents. The Cayman Islands government will then relay the information to the U.S. Internal Revenue Service.


The agreements also allow a standard mechanism for reporting to the Caymans' Tax Information Authority, which will be the sole channel in the Cayman Islands for providing tax-related information to other governments.


Read TaxNewsFlash-United States: FATCA - Cayman Islands government adopts Model 1 intergovernmental agreement (March 2013)




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