Tax information agreements burdensome to financial industry
The implementation of tax information reporting agreements is costing the financial services sector a pretty penny.
Financial Services Councillor Roy McTaggart told Cayman 27 the industry has spent time and money making sure their systems are compatible with government’s recently established reporting portal, which ultimately transmits the information to the US and UK.
“It is clear in my mind that the implementation of the automatic exchange of information and particularly FATCA, the US FATCA and the UK FATCA, has been extremely costly to industry,” explained Mr. McTaggart. “They have had to spend a lot of time to amend their systems, and money to amend their systems to be able to extract the information that has to be reported. But it has come at a huge cost to industry.”
The country announced last week it will implement the Common Reporting Standard later this year as one of the first wave of 90 jurisdictions to do so. Cayman expects to complete its first CRS exchanges in 2017.
The hope is, the CRS will eventually serve as a global tax information sharing mechanism.
Cayman 27′s Joe Avary filed this report.
