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US, Cayman sign FATCA agreement

Published:Sunday | December 1, 2013 | 10:18 AM

The United States and the Cayman Islands have signed a number of inter-governmental agreements or IGAs that will allow for the implementation of the new US tax law, the Foreign Account Tax Compliance Act (FATCA).

US Deputy Assistant Secretary for International Tax Affairs, Robert Stack, says the agreements underscore growing international cooperation in the effort to end tax evasion everywhere.

The US Treasury Department says also that FATCA is rapidly becoming the global model for combating offshore tax evasion and promoting transparency.

FATCA was enacted in 2010 to allow the US government to obtain information from foreign financial institutions on the accounts of US taxpayers in other countries.

Foreign financial institutions have the option of entering into agreements directly with the Internal Revenue Service, or through one of the two alternate model IGAs signed by their government.