The Jamaica Bankers Association (JBA) is again urging the Government to push for an agreement with the United States to ease the costs faced by local financial institutions if they are to conform with the Foreign Account Tax Compliance Act (FATCA).
JBA President Bruce Bowen said the association continues to lobby for an inter-governmental agreement that would allow local financial institutions to report to a local competent authority rather than the Internal Revenue Service (IRS).
At the same time, Bowen pointed out, in an interview with Wednesday Business, that other countries were observing the progress of FATCA and its effectiveness in garnering more taxes for the US Treasury.
"The US is not the only country to recognise the importance of effective tax enforcement," Bowen said. "As such, other governments have been showing considerable interest in FATCA and whether it will be effective in accomplishing the objective of boosting the IRS's tax enforcement and collection."
The US Treasury said in a report in mid-November that it is actively engaged with more than 50 countries and jurisdictions to enter into inter-governmental agreements for compliance with FATCA provisions.
CAYMAN LEADS REGION
However, the Cayman Islands is the only listed Caribbean country with which negotiations are advanced. The Treasury Department said the first model was signed by the United Kingdom in September 2012.
It also indicated that both the Treasury Department and the IRS were looking to implement final FATCA regulations in the near term, and would continue reaching out to interested jurisdictions wishing to implement agreements with the US.
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