Jersey and Guernsey's FATCA talks with US 'advanced'

Deputy Peter Harwood and Senator Ian Gorst
Image caption Deputy Harwood and Senator Gorst said a meeting on FATCA had been held with the UK Treasury

Jersey and Guernsey's chief ministers have announced negotiations with the United States on a Foreign Account Tax Compliance Act (FATCA) are "advanced".

The two islands' governments have been coordinating with the US on an initiative aimed at curbing tax avoidance by American citizens.

A statement from Senator Ian Gorst and and Deputy Peter Harwood said a meeting with the UK Treasury had been held.

This allowed them to discuss the exchange of information with the UK.

The chief ministers said they were awaiting the publication of the US' final FATCA regulations, which were due by the end of the year.

Ratified separately

An agreement with the UK would allow the principles of FATCA to be applied to its relationship with the Crown Dependencies.

The FATCA rules will force US taxpayers to declare financial assets held overseas and overseas financial institutions to report on assets owned by US taxpayers.

Any agreement signed with the US would need to be ratified separately by each of the islands' parliaments.

The UK signed up to the agreement in September 2012.

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