AmCham congratulates Government on signing FATCA

AmCham yesterday reminded that it has been “very vocal on this issue, since the Act was passed in the US in 2010, and while there are still many questions on the general principles, breadth of scope and implications of FATCA, we believe that this is a step in the right direction.” Government is now being urged by Am- Cham to ensure that the supporting legislation and regulatory policies are enacted and enforced, so that the Trinidad and Tobago Board of Inland Revenue (BIR) can easily share the relevant information with the US “without administrative burden and untimely delays, while at the same ensuring that the legitimate expectations of privacy are respected.” Having already established the principle of information sharing, reinforced through the signing of the IGA on tax information, AmCham said it would like to take this opportunity to suggest that Government look into two issues which it (Am- Cham) continues to advocate: “namely the need for transfer pricing legislation and designation of the Piarco international Airport as a pre-clearance port of entry into the US.” “As we continue to look at international best practice, with a focus on international trade and attracting foreign investment, transfer pricing regulation becomes increasingly important.

These taxation rules will also affect BIR efficiency and efficacy, along with the implementation of a Revenue Authority. Consequently, we urge the government to engage stakeholders in meaningful consultation on this important issue with a view to having the legislation drafted and laid in the next session of Parliament,” AmCham said.

Regarding pre-clearance, the business group noted that this would require collaboration with US authorities on immigration and security information.

Pre-clearance is a process through which travellers to the US clear immigration and customs at the port of departure.

“Therefore, if TT were to successfully create a pre-clearance port – at Piarco, for example - we believe this would have a tremendous positive effect on TT’s economy, giving further impetus for the growth of the logistics sector and solidification of our position as an economic hub within the Western Hemisphere,” Am- Cham stated.