From:TheBahamasWeekly.com
Bahamas Releases Proposed FATCA Legislation & Guidance Notes For Industry Consultation
By The Bahamas Ministry of Financial Services
May 14, 2015 - 4:42:17 PM
The Bahamas Ministry of Financial Services released draft
copies of the FATCA Legislation and the FATCA Guidance Notes to meet the
International Tax Compliance Requirements of the Model 1 FATCA
Intergovernmental Agreement (IGA) between the Bahamas and the United States of
America (US).
The new FATCA Bill was drafted in order to give powers to
the Competent Authority who will be responsible for reporting to the US
government and to facilitate the Automatic Exchange of Information (AEOI)
process
under the FATCA IGA.
The Bahamas Guidance Notes have been drafted by EY
following consultation with representatives from the financial services
industry including the Ministry of Financial Services, the Ministry of Finance
and the private sector FATCA Working Group.
The purpose of the Guidance Notes is to provide practical assistance to
industry practioners identified as Foreign Financial Institutions (FFIs) in the
Bahamas in interpreting their obligations under the IGA.
The
draft FATCA
legislation and the draft FATCA Guidance Notes will together form key
components of the Bahamas’
AEOI reporting regime in assisting industry
practitioners with readying themselves to comply with FATCA obligations in
accordance with Bahamian law.
The Bahamas government in partnership
with EY and Convey (a leading tax software provider), the team engaged to
design and deploy The Bahamas' FATCA solution, are scheduled to release the
FATCA solution to the financial services industry by the end of June. The solution, which will follow the
published IRS schema, is intended to safely manage and facilitate the ease of
reporting requirements to the US government through the transmittal of
information from the Bahamas Competent Authority to the IRS under the IGA.
Financial Services in the Bahamas has long been a component
that makes up the fabric of our Bahamian economy with a long unmatched history
in the Caribbean as the leaders in providing financial services. The
Bahamas government has
worked hard in conjunction with industry practioners to develop a strong
reputation for its leadership in international financial sector issues and will
continue to strive to remain at the forefront of complying with international
best practices and regulatory standards.
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