It seems likely that Jersey will be able to select either a system agreed between America and five major European nations or a deal brokered by the Swiss with the American authorities.
In order to comply with what is known as the Foreign Account Tax Compliance Act (FATCA), all companies will have to ensure that they are registered under the agreements brokered by the states in which they operate.
Maxine Rawlins, tax partner of Ernst & Young, said that if Jersey goes for the same type of arrangement as that into which the UK appears to be prepared to enter, the Island needs to engage with the United States to formulate a practical solution to the FATCA burden.
Full story in Thursday’s JEP
