The United States (U.S.) Foreign Account Tax Compliance Act (FATCA) is rapidly becoming the global model for combating offshore tax evasion and promoting transparency.
FATCA, enacted in the U.S. in 2010, seeks to obtain information on accounts held by U.S. taxpayers in other countries. It requires U.S. financial institutions to withhold a portion of payments made to foreign financial institutions (FFIs) that do not agree to identify and report information on U.S. account holders. FFIs have the option of entering into agreements directly with the U.S. Inland Revenue Service (IRS), or through one of two alternative Model Intergovernmental Agreements (IGAs) signed by their home country.
Effective September 30, 2016, Financial Institutions in Trinidad & Tobago will be required to begin their FATCA reporting to the Board of Inland Revenue, as is required under the Model 1 Inter Governmental Agreement (IGA), which was signed with the US government in August 2016.
The completed ‘Declaration of U.S. Status’ form can be submitted to any branch of Republic Bank. This Form is also available for completion at any branch.
What will happen if you do not comply?
In keeping with the reporting requirements outlined for countries that have entered into a Model 1 IGA Agreement, we will be required to report you as ‘Recalcitrant’ to the United States Inland Revenue Service via the Board of Inland Revenue.