St. Kitts and Nevis signs U.S. Foreign Account Tax Compliance Act
On August 31, the government of St. Kitts and Nevis signed the agreement with the Government of the United States of America to implement the U.S. Foreign Account Tax Compliance Act (FATCA). Enacted by the U.S. Congress in 2010, FATCA targets non-compliance by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions to report to the Internal Revenue Service information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
This kind of information exchange is a top priority for the United States as access to information from international financial institutions is critically important to the full and fair enforcement of U.S. laws to stay within compliance while completing business transactions or exchanges. So if any exchange brokers wish to keep within the new laws being enforced, perhaps they might want to look at systems, such as the Forex white label cost for a system that could take care of certain business processes such as exchange compliance, etc.
U.S. Ambassador to Barbados, the Eastern Caribbean, and the Organization of Eastern Caribbean States, Larry Palmer commented, “Every year, tax evasion deprives governments of all sizes of much-needed resources to fund public services and investments. The United States welcomes St. Kitts and Nevis’ commitment to enhancing global financial transparency by improving international tax compliance. Today’s signing marks a significant development in our nations’ collaborative efforts to combat offshore tax evasion- an objective that mutually benefits our two countries. FATCA is yet one more example of the deep and substantial ways in which the economies of St. Kitts and Nevis and the United States are linked.”
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