Senior deputy governor of the Bank of Jamaica, Myrtle Halsall, has, reportedly, suggested that Jamaica could initiate steps to get financial information on nationals living in the US in similar way the US authorities are seeking to do with its Foreign Account Tax Compliance Act (FATCA).
Halsall said: "In terms of impact on the Jamaican economy, hopefully, if there are Jamaicans who have funds abroad and are trying to evade taxes by putting it in the US, the Government could seek to boost its resources through that method.
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"That is not at the forefront of it, but that could be a by-product (of FATCA)," added Halsall, who also chairs the FATCA task force for Caricom.
The Internal Revenue Service (IRS)-driven FATCA, which was passed into law in 2010, will begin in January 2014, requiring all non-US financial institutions to send information to the IRS about any accounts and holdings maintained by such persons, which generate income or capital gains.
According to the act, any institution failing to comply with the FATCA regulation will face massive penalties on any business it does within the US or could be banned from all such activity.
FATCA will also require institutions to determine whether their customers are subject to US tax – either by citizenship, residence, or on any other criteria.
On 3 June 2013, HMRC finalised its 145-page final guidance notes on FATCA following consultation with stakeholders such as the Investment Management Association.
