Foreign Account Tax Compliance Act

Posted on 16 October 2012 in IQE Isle of Man

The Isle of Man, Guernsey and Jersey Governments have simultaneously announced their intention to negotiate partnership agreements with the United States of America to implement FATCA. Industry representatives have given their support to the proposed course of action, following a consultation on the matter.

The United States Government published a model intergovernmental agreement on 26th July 2012 and it is expected that the agreements will be in a similar form to the agreement signed between the United States and the United Kingdom on 12th September 2012.  Further to official level discussions between the United States and the Crown Dependencies jointly; formal negotiations will now take place with the intention to rapidly conclude the agreements.  The agreements, once signed, will be subject to ratification by each Crown Dependency Parliament and implemented through their relevant domestic legislative procedures.

Isle of Man Treasury Minister, Eddie Teare MHK, commented: "Basing FATCA implementation on an intergovernmental agreement is preferred by our industry and I am pleased to confirm our intention to follow this approach with the US Government.  The simultaneous announcement today provides certainty for our business community as they also prepare for FATCA.  Entering into this type of arrangement highlights and confirms the Isle of Man's commitments to being a well-regulated jurisdiction which co-operates with other countries on tax matters in accordance with internationally agreed tax standards on transparency and exchange of information.  I am particularly pleased that the three Crown Dependencies are working together and are taking a common approach on this issue."