Foreign Account Tax Compliance Act (FATCA)
FATCA was introduced by the United States of America (US) and became law as part of the Hiring Incentives to Restore Employment Act on March 18, 2010. Its aim is to tackle offshore tax evasion by US taxpayers by increasing the transparency for the US Internal Revenue Service (IRS) with respect to US persons that may be investing and earning income through non-US institutions. To this end, it requires Foreign Financial Institutions (FFIs) such as those companies which form part of the First Citizens Group (the Group) to provide information annually on US accounts which it holds either directly to the US Internal Revenue Service (IRS) or through a local competent authority.
How has FATCA impacted Guyana?
Guyana entered into a Model 1A Inter-Governmental Agreement (IGA) with the US on October 17, 2016. The enforcement of the FATCA framework required the Government of Guyana to amend local laws in order to empower the Guyana Revenue Authority (GRA) to receive and send information to the IRS as required. Section 63 of the Financial Institutions Act, Chap 85:03 of the, Laws of Guyana was amended to designate the GRA as the competent authority, on behalf of the Government of Guyana. In this regard, the GRA would forward the information received on reportable US accounts and submit it to the IRS.
What does this mean to the First Citizens customer?
The Group remains committed to preserving its customers’ information in the strictest manner. In our response to the competent authorities, we would continue to abide by local privacy rules to ensure customer confidentiality is maintained.
How does FATCA impact the Group?
The Group intends to meet all of its legal obligations imposed by FATCA and provide the necessary reports to the GRA on accounts held by:
• US Persons;
• US Entities;
• Non-US Entities with substantial US ownership;
• Passive Non-Financial Foreign Entities with substantial US ownership; and
• Non-Participating Foreign Financial Institutions.
Who is a “US Person”?
• Citizens and residents of the US, including green card holders;
• Corporations and partnerships created under the laws of the US;
• Estates and trusts created under the laws of the US;
As a customer of the Group, you will be required to declare whether or not you are a US Person by completing the prescribed declaration forms. You will also be required to notify the Group whether there are any changes affecting your status as a US Person.
If you are unable to determine if you are a US Person, we recommend that you seek advice from an independent tax advisor and/or attorney-at-law.
Where can I get more Information?
For further information on FATCA, please click on the following link, www.irs.gov/FATCA .