Introduction
Last week I drew readers’ attention to the far more potent threat facing tax evaders and money launderers operating in and through Guyana, than the activities of the Financial Action Task Force (FATF) and its regional counterpart, the Caribbean Financial Task Force (CFATF). That threat is embedded in the US Foreign Account Tax Compliance Act (FATCA). Remark-ably, to date, this act has drawn little or no public comment from our governmental and private sector communities even though a US Treasury Notice has been recently issued stating that it is coming into effect on July 1, 2014. This silence is in contrast to the public furore over the legislative amendments jointly developed by the CFATF and the Government of Guyana.
FATCA casts its net far and wide as it targets all US tax evaders, a category that obviously includes both citizens and legal residents. From what can be observed this grouping includes a considerable number of persons in the Guyanese-American community who have been ‘transacting’ and moving regularly between the United States and Guyana. Their present reality is that, unreported and un-taxed financial and other assets (as well as income) arising out of Guyana, now clearly falls under the active purview of the US Internal Revenue Service (IRS).
The reason for government turning a blind eye to the FATCA threat might very well be trepidation on its part. I personally believe, however, the
