MINISTER OF FINANCE Christopher Sinckler has expressed concern that the Foreign Account Tax Compliance Act (FATCA) would place pressure on the financial services sector in the area of information reporting.
However, he said it was “not a threat” since the sector was in a position to meet the requirements.
FATCA is a new chapter in the United States Internal Revenue Code, which was introduced in March 2010 and came into effect in January.
FATCA would require foreign financial institutions (FFIs) to report directly to the United States Inland Revenue Service (IRS) about financial accounts held by American taxpayers or foreign entities in which they hold a substantial ownership interest or be penalized for non-compliance.
“We are concerned, though not threatened, about the impact of the now infamous Foreign Account Tax Compliance Act, which took effect on January 1, 2013. This development has placed some pressure on the financial services sector as it makes substantial changes to information reporting and compliance requirements for offshore accounts,” he noted.
Sinckler said, though, that the international business companies here have “responded well by renewing their interest in and affection for Barbados and ensuring that information was shared where it is required”.
“This new law is not being viewed as a threat but as a challenge, and one that must be overcome even as we take advantage of the opportunities which it will create for Barbados,” added Sinckler.
The Minister made the comments during the inauguration of the Cheapside, St Michael branch of the Pan American International Corporation Life Insurance company Tuesday night. (MM)
