Wednesday, December 4, 2013

Cayman Islands agrees to report US citizens’ offshore assets under controversial law

December 02, 2013

The Cayman Islands has signed an agreement with the United States to combat offshore tax evasion pursuant to a controversial 2010 law that has caused some notable US expatriates to revoke their US citizenship. The US Department of the Treasury announced Friday the US has signed an intergovernmental agreement with the Cayman Islands to enforce the Foreign Account Tax Compliance Act (FATCA) in what it bills as an effort to promote transparency.

In the Cayman Islands – one of the world’s largest offshore financial centers - foreign financial institutions (FFIs) will be required to share tax information about US account holders with the IRS via the Cayman Islands Tax Information Authority.