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OECS Countries seeking to comply with US Tax Law

OECS1From The Gleaner

The St Kitts-based Eastern Caribbean Central Bank (ECCB) says it is spearheading the establishment of a working group to ensure that financial institutions which operate within the Eastern Caribbean Currency Union (ECCU) are prepared to comply with the United States Foreign Account Tax Compliance Act (FATCA).

FATCA seeks to combat tax evasion by US citizens and resident non-citizens with US-sourced income in foreign financial institutions (FFIs) outside of the United States.

The US initiative requires the FFIs to report information to the US Internal Revenue Service (IRS) on assets held by US taxpayers, or by foreign entities in which US taxpayers hold substantial ownership interest.

The ECCB said that the working group comprises representatives from the attorney general’s chambers, inland revenue departments, single regulatory units/financial services authorities, and ministries of finance of the ECCU member countries, and representatives from the financial services industry and the ECCB.

“The working group is charged with making recommendations to the respective member governments on the appropriate approach for ECCU FATCA compliance, including the development of a harmonised legislative and regulatory compliance framework, and monitoring the compliance status of the respective territories and financial institutions,” the ECCB said in a statement.

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