Trinidad And Tobago Continues To Debate FATCA Bill
by Lorys Charalambous, Lowtax.net, Cyprus
06 January, 2017
Trinidad and Tobago's legislature continues to debate legislation to facilitate domestic financial institutions' compliance with the US Foreign Account Taxpayer Compliance Act.
FATCA, enacted by the US Congress in 2010, is intended to ensure that the US obtains information on accounts held abroad at foreign financial institutions (FFIs) by US persons. Failure by an FFI to disclose information on their US clients will result in a requirement to withhold 30 percent tax on payments of US-sourced income.
The legislation requires a special majority in the territory's Parliament – a 3/5 majority – which the present government does not have. In an effort to break the impasse, the territory's Ministry of Finance has published a list of amendments to the FATCA bill and responses to amendments proposed by the opposition party.
Trinidad and Tobago has been advised by the US Ambassador that its FATCA legislation must be in place by February 2017. Otherwise it will be treated as having failed to carry out the commitments in the FATCA intergovernmental agreement signed by the US and Trinidad and Tobago.
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