Seychelles signs agreement with the United States of America to Improve International Tax Compliance and to Implement, FATCA
July 03, 2019
In a short ceremony the Government of Seychelles, represented by Ambassador Maurice Loustau Lalanne, also Minister for Finance, Trade, Investment and Economic Planning, signed an agreement with the Government of the United States of America to implement the Foreign Account Tax Compliance Act, FATCA.
A signing which was done at Liberty House, among senior representatives from the Ministry and the US government here.
FATCA is a US law that was passed in 2010 in the fight against tax invasion. Its primary aim is to prevent US tax payers from using foreign accounts facilitation permission tax offenses. This is done by setting up a system where financial institutions from around the world communicates directly with the US Interim Revenue Service, IRS, about foreign assets held by US account holders.
The US Ambassador to Seychelles, David Reimer noted that this agreement directly helps the United states of America and extends his gratitude to Minister Lalanne and the government of Seychelles for their support in the US efforts to combat tax evasion. “Today’s agreement also sends a very positive signal to the entire international community about Seychelles roles as a leading financial hub. Seychelles now joins a network that includes 61 other governments with similar agreements in place. It addresses legal impediments and reduces burdens for financial institutions in Seychelles. In the end what it means is that US tax invaders can no longer find a safe haven in Seychelles’, says Ambassador Reimer.
Ambassador Lalanne for his part, remarked that being a small jurisdiction, Seychelles needs to ensure that the necessary procedures in place and required institutions can actually communicate effectively to deal with any requests should the need arises. “Our banks are ready and all set and hope to be able to give you complete satisfaction, both in terms of American companies that are in Seychelles, as well as individuals that are operating here with regards to the implementation of FATCA. It is certainly our aim in the future to improve our international standards with regards to anti-money laundering and terrorism financing and tax evasion as well. We are extremely pleased to be able to sign this agreement”, says Minster Lalanne.
Minister Lalanne noted that the signing of the agreement also shows the willingness of the Seychelles Government to be more transparent, respect established international norms, and to cooperate with international jurisdictions to ensure that all concerned parties are on the same wave length.
Seychelles have signed different similar agreements with other countries, such as Double Taxation Avoidance Agreement.