U.S. Signs Intergovernmental FATCA Pacts With Cayman Islands, Costa Rica

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The U.S. has signed intergovernmental agreements (IGAs) to implement the Foreign Account Tax Compliance Act with both the Cayman Islands and Costa Rica—the first FATCA pacts in the Caribbean and Central America, the U.S. Treasury Department announced.
Deputy Secretary for International Tax Affairs Robert B. Stack said Nov. 29 the development marks a milestone in the effort to promote global tax transparency. “These agreements underscore growing international cooperation in the effort to end tax evasion everywhere.”
Enacted in 2010, FATCA seeks to obtain information on accounts held by U.S. taxpayers in other countries. It requires U.S. financial institutions to withhold a portion of payments made to foreign financial institutions (FFIs) that do not agree to identify and report information on U.S. account holders.

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