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Financial institutions warned to file FATCA reports for 2015

Published:Thursday | July 21, 2016 | 7:20 PM

Financial institutions are being warned by Tax Administration Jamaica (TAJ) that they will face penalties if they fail to meet tomorrow’s deadline to file their Foreign Account Tax Compliance Act (FATCA) reports for 2015.

The TAJ says to date 24 of the 44 financial institutions required to file a FATCA report have done so.

Financial reports are required to provide information on accounts held by US citizens and residents living on the island to tax authorities in America.

The reports are to be submitted to the TAJ and the authority would then pass them on to their counterparts in the US.

The TAJ points out that financial institutions had until May 31 to file reports, as stipulated by the Revenue Administration (Amendment) Act, but it agreed to provide an extension without penalty following a request from stakeholders.

It further says the extension was to allow institutions to make adjustments to their systems to accommodate additional information required by the US Internal Revenue Service.

The TAJ is now urging institutions to meet the deadline to avoid any penalty being applied.