Companies preparing for FATCA - Jarrett
The General Manager of Jamaica National Building Society Earl Jarrett says his company has already spent close to $1 million to ensure that it is compliant with the new US tax law, the Foreign Account Tax Compliance Act (FATCA).
Jarrett also says other financial institutions are reporting spending similar sums to prepare for the implementation of the new legislation that seeks to target Americans living abroad who are eligible to pay taxes.
The disclosures come a day after the US Department of the Treasury and the Internal Revenue Service announced that Jamaica and other Caribbean countries have been granted a six-month extension for the implementation of FATCA.
This means that the new legislation will now take effect across the region come July 1 next year.
Jarrett says the expenditures covered the hiring of an international accounting firm to help establish JNBS’ FATCA compliance programme and the training of its staff.
The Treasury Department says the extension will provide the region and foreign financial institutions (FFIs) more time to comply with the new law while helping to ensure efficient implementation.
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