GREAT BAY (DCOMM):--- On Thursday, April 10th, representatives of the Department of Fiscal Affairs, Janio Chayadi and Mercedez James, presented to the Council of Ministers (COM) information regarding the Foreign Account Tax Compliance Act (FATCA).
The FATCA is a provision of the Hiring Incentives to Restore Employment Act of 2010 (HIRE Act) in the United States of America (U.S.A.), and the legislation was passed to target non-compliance of U.S. taxpayers using foreign accounts.
The FATCA generally requires foreign financial institutions to report to the Internal Revenue Service (IRS) of the U.S. with information regarding accounts held by U.S. taxpayers or by foreign entities in which U.S. taxpayers have substantial ownership interests. Foreign financial institutions have to comply or otherwise face penalties.
The Council of Ministers was informed about the different methods of implementation regarding the FATCA and advised about which method would work the best, since Sint Maarten only has a small number of financial institutions that need to comply. The Council of Ministers appreciated the in-depth presentation by the Department of Fiscal Affairs.
