FATCA seminar for local residents

Cayman Finance and the government’s Ministry for Financial Services are expecting the U.S. Foreign Account Tax Compliance Act to impact approximately 6,000 residents in the Cayman Islands.

The law forces financial institutions worldwide to disclose customer details of U.S. taxpayers to the Internal Revenue Service or face a 30 percent withholding tax on transactions with the United States.

To inform those affected about the impact of the new legislation on individuals, rather than businesses, government and the organization representing the financial services industry in the Cayman Islands are joining forces to present another seminar.

Anybody who was born in the U.S., holds an American passport or a green card or has a U.S. address is invited to attend the event from 4 to 6 p.m. on Oct. 3 at the Westin resort on West Bay Road in Grand Cayman.

While Cayman’s financial services industry has been working diligently to prepare for FATCA, local residents also need to take careful note, Financial Services Minister Wayne Panton said.

“This may be an American law, but it has impact and consequences in the Cayman Islands as well. Everyone with a close U.S. connection will likely be affected by FATCA to some degree,” he said.

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Mr. Panton said he is delighted his ministry is again teaming up with Cayman Finance to ensure this important information reaches a broad audience.

“We have continued to strengthen our relationship with Cayman Finance, and we are very happy to be able to reinforce our message by joining forces with the private sector in this way.”

Gonzalo Jalles, CEO of Cayman Finance, said that anyone with a U.S. connection needs to give FATCA a high priority.

He said, any U.S. person, as defined by the IRS, living or working in the Cayman Islands, must understand the effect FATCA regulations may have on their particular situation. “The way taxes are levied in the U.S. means, for example, all Caymanians born in the U.S. – even if they never lived there nor have a U.S. passport – are liable to pay taxes and file tax returns yearly,” he said. “FATCA will expose those persons who have not been complying with the U.S. tax law, including some Caymanians. It is therefore vital people are fully aware of how the legislation can impact them.”

The seminar is sponsored by Dillon Eustace and KPMG. Confirmed speakers include Roy McTaggart, councilor with the Ministry for Financial Services, Steven L. Cantor, Cantor & Webb P.A., and Doug Harrell of KPMG.

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