.png)
.png)
The governments of Guernsey, Jersey and the Isle of Man (IoM) are to negotiate partnership agreements with the USA to implement the Foreign Account Tax Compliance Act (FATCA).
The accords will follow the model intergovernmental agreement published by the Obama administration in July and be similar in form to the document signed last month by the UK and the USA.
Once signed, the agreements will be subject to ratification by the Islands' parliaments. Implementation will be through the domestic legislative procedures relevant to each of the three jurisdictions.
Jo Huxtable, tax partner at Deloitte, said the news was “an exciting development in that the islands have achieved this agreement by working together and ahead of many other larger jurisdictions”.
She suggested that “on a practical level, this statement of intention will be welcomed by businesses in Guernsey, Jersey and the IoM because it provides clarity.
“With the knowledge that the local agreements should closely follow the UK agreement in form, local organisations working towards FATCA compliance can now focus on the practical steps required to become compliant under an inter-governmental agreement,” suggested Huxtable.
“At a government level, the next steps are for the islands to conclude their negotiations with the US Internal Revenue Service, and then for each island to implement the agreements into local law.”
