As the United States continues to promote Foreign Tax Compliance across the globe by recommending that foreign country financial institutions report account information for U.S. citizens living both domestic and abroad, both the Cayman Islands and Costa Rica have agreed to provide the U.S. information of Americans' offshore accounts to US tax authorities.
Cayman Islands and Costa Rica join a group of ten (10) other countries who have agreed to sign reporting agreements with the United States (http://www.theguardian.com/
The new FATCA rules and guidelines will require foreign financial institutions to update the the US Internal Revenue Service on information involving Americans' offshore accounts worth more than $50,000. FATCA was devised in response to a recent a Swiss banking scandal which revealed that more than 17,000 US taxpayers had hidden substantial amounts of monies in various banks and financial institutions overseas.
The deals with the Cayman Islands and Costa Rica will mark the 11th and 12th FATCA "intergovernmental agreements" (IGAs), which help countries' financial institutions comply with the law. By way of background the FATCA agreement with the Cayman Islands were agreed to back in August of 2013. This agreement is very important, especially since the island territory of 53,000 people has no income tax and is a well-known tax haven by critics. It is one of the world's most popular destinations for investment funds seeking tax shelters.
In addition, Costa Rica was names as one of three Central American countries the Organisation for Economic Development and Co-operation (OECD) identified as a know tax haven. (The other two countries were) Panama and Belize.
S. Matthew Golding’s domestic and international law practice emphasizes the representation of clients worldwide in matters involving Tax, Estate Planning, and Probate Law. Matthew’s clients include U.S. and foreign citizens living abroad in countries such as Iraq, Japan, Afghanistan, Indonesia, South Africa, Pakistan, and Korea. Matthew is currently enrolled in one of the nation’s Top Master of Tax Law Programs at the University of Denver in a distance program designed for experienced professionals. He worked his way through school, graduating University of Denver (1996) and Whittier Law School (1999) and earning Dean’s List distinction at both institutions.
Member, State Bar of California, 1999-Present
Member, State Bar of New York, 2004-Present
Enrolled Agent, Federally Licensed Tax Practitioner (Highest credential awarded by the IRS)
Admitted, United States Tax Court
Real Estate Broker, California Department of Real Estate
He is the owner and operator of http://www.GoldingLawyers.com http://www.GoldingTaxSolutions.com, and http://www.GoldingRealEstateStrategies.com