The Foreign Account Tax Compliance Act (FATCA) which is part of the Hiring Incentives to Restore Employment Act, was passed by the United States (US) Congress on 18 March 2010. It was enacted to combat tax evasion by United States taxpayers holding assets in non- U.S financial accounts / institutions. FATCA requires Foreign Financial Institutions (FFIs) to report to the United States Internal Revenue Service (IRS) information on account and other financial assets held by U.S taxpayers, or by foreign entities in which U.S taxpayers hold substantial (greater than 10%) ownership interest.
The Government of St. Kitts and Nevis has made the commitment to enter into an Intergovernmental Agreement (IGA) which will allow for the Financial Institutions within the Federation that have registered with the IRS for FATCA purposes, to comply with the reporting requirements of FATCA.
Financial Institutions are obligated to report the required information annually or upon request by the United States Internal Revenue Service (IRS). Failure to comply may result in the imposition of penalties.
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