Tax havens sign up to FATCA

Offshore tax havens Guernsey, Jersey and the Isle of Man are working towards an agreement with the US government on FATCA, the incoming regime to prevent tax evasion.

In a move which will improve the transparency of tax activities on the islands, the three governments said they will negotiate partnership agreements with the US, similar to the one agreed between the US and UK last month. An intergovernmental agreement is expected to be signed soon, following official discussions which have already taken place. This will then have to be ratified by the parliaments of each island before it becomes part of domestic legislation. FATCA, the Foreign Account Tax Compliance Act, is designed to force US citizens living overseas to declare their assets in acc...