Cayman Premier reassures nervous US taxpayers
Tuesday April 26 2011 | 01:10 AM

The premier has pledged continued government support to the many US passport and green card holders living in the Cayman Islands who are due to be hard hit by upcoming changes to the US tax law. Under the Foreign Account Tax Compliance Act, which will take effect 1 January 2013, all US citizens, whether living in the US or abroad, will have to meet more stringent reporting obligations to satisfy Internal Revenue Service requirements. At a special US tax seminar on Tuesday, McKeeva Bush assured the hundreds of people who packed the ballroom at the Marriott Beach Resort that “we will continue to do whatever else we can as a government to assist…We trust you will be better informed as a result of today’s proceedings.” 

FATCA will require foreign banks to send the IRS information on US account holders, which will enable the tax authority to identify and heavily penalize individuals who fail to disclose any overseas bank accounts or financial interests exceeding US$10,000 in total. 

Bush sought to reassure the standing room only audience, who were obviously concerned by the planned changes to the tax law and how these would affect their income and bank accounts, both of which are liable to US tax. 

Commenting that people have approached him about what the government was doing to help and asking, ‘Why can’t you fight this?’ he added, “we have done our best on many fronts in dealing with the United States and other jurisdictions in regards to tax matters. 

“Sometimes we can fight; other times fighting gets us nowhere. We have to sit down, be reasonable and slowly take your hand out of the lion’s mouth.” 

The premier spoke about government trips to Washington, DC to speak with IRS and Treasury officials. “The last (visit) was very important and, I think, successful and we will have to continue having dialogue with them.” 

With the US elections coming up next year, Bush stressed these meetings take on added importance “as more and more officeholders and potential officeholders get on the bandwagon and try to use Cayman as a scapegoat for their own failures.” 

Calling the tax issues “very complex matters” Bush said he would see what more could be accomplished in Washington by possible additional talks with the IRS and US Treasury. “We recognise your concerns,” he told the crowded room, “and we want as government to do what we can to help you.”