Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
U.S., Cayman Islands Reach Tax Deal
Author: Scarinci Hollenbeck, LLC
Date: August 28, 2013
Key Contacts
Back
Falling in line with the push for greater global collaboration to combat tax evasion, the United States and the Cayman Islands have reached a tax deal to fight violations.
The partnership – which is partially designed to encourage other low-tax and favorable tax havens to join the U.S’s anti-tax evasion legislation – means that the highly-scrutinized Cayman Islands will participate in the Foreign Account Tax Compliance Act set to take effect in July 2014. More specifically, the agreement “will provide certainty to Cayman’s significant fund industry with respect to FATCA implementation,” said Robert Stack, the U.S. Treasury Department’s deputy assistant secretary for international tax affairs, according to Reuters.
The deal is a large win for the U.S.’s battle against tax evasion, as the small Caribbean destination currently has no income tax and is therefore a popular location for individuals with large investment holdings. Once the agreement between the U.S. and the Cayman Islands is signed, the latter will be required to disclose account information on all U.S. clients who hold more than $50,000 in assets in the small island. However, these thresholds may be higher for those who are married and filing jointly, the IRS noted. Failure to comply with the new tax law could result in a 30 percent withholding tax on U.S. source income, and may result in countries essentially being pushed out of U.S. markets.
The threat of these penalties may play a role in encouraging other small islands and countries who have not yet signed agreements with the U.S. to either do so, or risk being alienated from lucrative U.S. financial markets. For example, Bermuda and the British Virgin Islands have yet to forge an agreement with the U.S., and may face difficulties competing for investment funds with other countries that have entered into an international partnership, Reuters explained.
- Practices: Tax and Trusts & Estates, International Law & Trade, Sophisticated Estate Planning & Wealth Preservation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators
NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]
Author: Scarinci Hollenbeck, LLC
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.