The Cayman authorities have announced that the Cayman Islands and the United States have “concluded negotiations” regarding the Foreign Account Tax Compliance Act (FATCA). The consensus reached a Model 1 Intergovernmental Agreement (IGA) and a new tax information exchange agreement (TIEA). The United States has been putting pressure on foreign governments in its initiative to gather tax dollars from U.S. citizens and permanent residents who have assets overseas but are not reporting the income. Under this pressure, Wayne Panton, the Cayman's minister for financial services said: “as an international financial center that contributes to the efficient functioning of global markets, the initialing and subsequent signing of the IGA and new TIEA with the United States will again demonstrate Cayman's commitment to engage in globally accepted tax and transparency initiatives.”
We have all heard of late, the cooperation that has been occurring between the U.S. and the Swiss Government and between the U.S. and the Israeli Government. Any U.S. citizen or resident with assets overseas – whether in Switzerland, Israel, Cayman or anywhere else, that has not been properly reporting same, should consider speaking to an attorney to discuss the alternatives.