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USA Foreign Account Tax Compliance

On the 9^th October 2012 the Governments of Isle of Man, Guernsey and Jersey are simultaneously announcing their intention to negotiate partnership agreements with the United States of America to implement FATCA. These agreements will follow the model intergovernmental agreement published by the US Government on 26 July 2012 and will be similar in form to the agreement between the United Kingdom and the USA signed on 12 September 2012. This follows consultation with industry representatives who have given their support for the proposed course of action.

Discussions have taken place at official level between the Crown Dependencies jointly and the USA; and formal negotiations will now take place with the intention of concluding intergovernmental agreements rapidly. Once signed, they will be subject to ratification by each of the Island parliaments and implementation of the agreements will be through the domestic legislative procedures relevant to each of the three jurisdictions.

Treasury Minister Eddie Teare, MHK, said:

‘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.’