And if the islands manage to strike a similar deal over the new tax regime as that reached between the US and five major European states, including the UK, then it should be easier for local finance firms to comply.
In order to comply with what is known as the Foreign Account Tax Compliance Act
(FATCA) – which will come into force on 1 July 2013 – all companies around the world will have to ensure that they are registered under the agreements brokered by the states in which they operate.
KPMG Channel Islands tax partner John Riva said the inter-governmental approach would allow local financial firms to report certain information to their respective local tax authorities, who would then pass the information to the US Inland Revenue Service.
