It was yesterday that a formal commitment to dispel offshore tax evasion by the United States and Guyana was made. This was done through the signing of an agreement that will seek to implement FATCA, The Foreign Account Tax Compliance Act. The ceremony was held at the boardroom of the Ministry of Finance, in the presence of the Commissioner- General of the Guyana Revenue Authority (GRA), Godfrey Statia. Affixing the signature on behalf of Guyana was the Minister of Finance, Winston Jordan and on behalf of the United States, US Ambassador to Guyana, Perry Holloway.
The Act was already enacted by the US Congress in 2010 and is used to prevent tax fraud and evasion by US taxpayers using foreign banks. It basically creates a system of automatic tax information sharing between financial institutions such as banks. FATCA also requests foreign financial institutions to identify and report any information about accounts held by US tax payers in their jurisdiction.
By signing this Act, Guyana will not only assist in curbing the problem of tax evasion in the US but also facilitating the exchange of information between the two countries. It represents another step in the cooperation between Guyana and the United States in order to combat money laundering and tax fraud as well as improving financial regulations.
