St Lucia signs US Foreign Account Tax

Saint Lucia Prime Minister Dr Kenny Anthony (L) and US Ambassador Larry Palmer. Credits: Caribbean News Now.

Published on November 20, 2015. BRIDGETOWN, Barbados -- On November 19, the government of Saint Lucia signed an agreement with the government of the United States to implement the US Foreign Account Tax Compliance Act (FATCA).

Enacted by the US Congress in 2010, FATCA targets non-compliance by US taxpayers using foreign accounts. FATCA requires foreign financial institutions to report to the Internal Revenue Service information about financial accounts held by US taxpayers, or by foreign entities in which US taxpayers hold a substantial ownership interest.

This kind of information exchange is said to be a top priority for the United States as access to information from international financial institutions is described as critically important to the full and fair enforcement of US laws.

US Ambassador to Barbados, the Eastern Caribbean, and the Organization of Eastern Caribbean States (OECS), Larry Palmer, commented, “Every year, tax evasion deprives governments of all sizes of much-needed resources to fund public services and investments. The United States welcomes St Lucia’s commitment to enhancing global financial transparency by improving international tax compliance. Today’s signing marks a significant development in our nations’ collaborative efforts to combat offshore tax evasion — an objective that mutually benefits our two countries. FATCA is yet one more example of the deep and substantial ways in which the economies of St. Lucia and the United States are linked.”