Forget About Stashing Your Cash in the Cayman Islands

Soon, your hard earned cash, will have nowhere to hide unless you're Elite.



Economic Policy Journal
Posted by Robert Wenzel
29 November 2013

The US Treasury has announced that the United States has signed intergovernmental agreements (IGAs) with the Cayman Islands this week to implement the Foreign Account Tax Compliance Act (FATCA).

"Today’s announcement marks a milestone in the effort to promote global tax transparency,” said Deputy Assistant Secretary for International Tax Affairs Robert B. Stack. “These agreements underscore growing international cooperation in the effort to end tax evasion everywhere.”

FATCA, enacted in 2010, seeks to obtain information on accounts held by U.S. taxpayers in other countries. It requires U.S. financial institutions to withhold a portion of payments made to foreign financial institutions (FFIs) that do not agree to identify and report information on U.S. account holders. FFIs have the option of entering into agreements directly with the IRS, or through one of two alternative Model IGAs signed by their home country.

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