Last Updated on Tuesday, 18 November 2014, 20:52 by GxMediaSan Juan, Nov 18 (EFE).- The government of Barbados signed an agreement under the U.S. Foreign Account Tax Compliance Act, known as FATCA, to combat tax evasion by foreign residents in the island.
The minister of Industry, International Business, Commerce and Small Business Development, Donville Inniss, signed the accord for Barbados, while U.S. Ambassador Larry Palmer initialed the pact, the government said in a statement.
“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,” Inniss said.
He added that the signing does not represent a deviation from the government’s belief that “businesses and investment must be allowed the flexibility to thrive.”
The agreement must be considered “a significant step forward in efforts to work collaboratively to combat offshore tax evasion,” Palmer said.
FATCA introduces reporting requirements for foreign financial institutions with respect to certain accounts held by U.S. taxpayers, the ambassador said.
“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,” Palmer said.