St. John’s, Antigua: Deloitte Barbados said a seminar will be held in Barbados on February 3 on the Foreign Account Tax Compliance Act (FATCA) for members of the accounting, banking and financial fraternity. The Caribbean accounting firm has embarked on a region-wide sensitisation programme to alert businesses about the potential impact of a US law relating to offshore accounts which will be effective in less than a year from now, according to a report in the Antigua Observer.
Deloitte said the Act that was passed March 18, 2010, will likely have far reaching implications as it aims to address perceived tax abuse by Americans through offshore accounts. The Treasury Department and the Internal Revenue Service (IRS) said the requirements would be phased in. The legislation stipulates that US taxpayers with specified foreign financial assets that exceed certain thresholds must report them to the IRS, according to the Observer article.
In addition, FATCA will require foreign financial institutions to report directly to the IRS, information about financial accounts held by US taxpayers or held by foreign entities in which US taxpayers hold a substantial ownership interest, an IRS statement said.
“This Act will go into effect from January 1, 2013, and will require many timely and costly changes for both US and non US entities…Failure to institute the required changes may seriously impact financial institutions in Antigua and around the world”, Deloitte explained.
The firm said it has begun mobilising globally to work with affected entities to implement the new requirements. The free seminar will provide details on the FATCA such as what it means for entities and what should be done now to prepare for it, the Observer stated.
The Deloitte team would also discuss challenges, provide guidance and explain how Deloitte can help with FATCA readiness, a company release explained. Clarke and Deloitte’s Enterprise Risk Services Manager, Krystle Leigh Jeffers, is scheduled to lead the seminar.
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