The Turks and Caicos Islands were among several British Overseas Territories signing an Intergovernmental agreement to implement the UK version of the Foreign Accounts Tax Compliance Act (FATCA) at the Joint Ministerial Council in London, November 26 and 27, 2013
The signing of the UK FATCA Style IGA is another milestone step by TCI to associate with many of the developed and developing financial services centers that it is taking the required responsible approach to be a part of the global efforts in combating tax evasion and financial crimes. The USA FATCA IGA is in an advance stage of negotiations with an expected initialing to be reaching shortly.
In recognition of the transparency measures being agreed as the new global standard and the likely impact of non-compliance, the Turks and Caicos Islands Government has agreed and published an Action Plan to prevent the misuse of legal individuals, institutions and arrangements in line with the standards and requirements of the Financial Action Task Force (FATF). This is a matter of good corporate governance as well as a means to tackle a wide range of illicit activity. Further strengthening of the current legislative and administrative framework will be undertaken to ensure proper regulation and supervision of the corporate sector. By the second quarter of 2014 many of these reforms are expected to be completed. The result is to have a well regulated financial service industry compliant with the global community in reporting and the sharing of information with tax authorities.
At the G8 Summit held in Northern Ireland in June, British Prime Minister David Cameron committed agreed to promote transparency and cooperation; and to establish and open to the public, a central registry of company beneficial ownership,. This simply means that the legal person behind the corporate veil of the company will be disclosed for tax purposes.
The UK Prime Minister also announced his intention to seek the cooperation of Crown Dependencies and Overseas Territories establishing the new global standard.
These actions, in addition to the signing of the Tax Information Exchange Agreements and the Convention on Mutual Administrative Assistance in Tax Matters sets the stage for global standards to combat tax evasion, counter terrorism and prevent money laundering.
