Barbados signs FATCA agreement
The Government of Barbados is committed to the implementation of global standards for the supervision and regulation of the international business and financial services sector.
That affirmation came today from Minister of Industry, International Business, Commerce and Small Business Development Donville Inniss prior to signing a Foreign Account Tax Compliance Act (FATCA) Agreement on behalf of Barbados with the United States of America (US). The agreement was co-initialed by Ambassador to Barbados Dr Larry Palmer at the US Embassy.
“The signature of this FATCA agreement represents one of the salient pillars in the transformation of how we as an international business and financial services centre interact not only with other jurisdictions on the sharing of vital information, but is an indication of the transformation of how we interact with our clients and apply greater due diligence in an ever-changing environment,” Inniss said.
He cautioned that the signing was not a deviation from Government’s belief that “businesses and investment must be allowed the flexibility to thrive”.
“However, it must do so in an environment not fraught with uncertainty and arbitrary regulation. This agreement therefore seeks to strengthen this regulatory framework,” he emphasized.
Ambassador Palmer welcomed Barbados’ commitment to intensifying its cooperation with the US to improve international tax compliance, and hailed the signing as “a significant step forward in efforts to work collaboratively to combat offshore tax evasion”.
“The FATCA introduces reporting requirements for foreign financial institutions with respect to certain accounts held by U.S. taxpayers. Because access to information from other countries is critically important to the full and fair enforcement of domestic tax laws, information exchange is a top priority for the United States.
“By working together to detect, deter and discourage offshore tax abuses through increased transparency and enhanced reporting, we can help to build a stronger, more stable and accountable global financial system,” Dr Palmer stated.
The signing was the culmination of discussions between Barbados’ Task Force and Negotiating Team, chaired by Secretary to the Board of the Central Bank, Elson Gaskin, and the US Treasury Department.