WHAT EXACTLY IS THIS FATCA?
Our Premier In a Statement made on Friday June 29th 2012 in the House of Assembly stated that: "an initiative that has been launched by the United States Government that has the potential to not only significantly affect our business practices here in the Virgin Islands, but also to impact the lives of many of our citizens who currently have dual citizenship.
By this I mean residents of this territory who are US citizens, or are Green Card holders.
This initiative, the Foreign Account Tax Compliance Act or FATCA as it is commonly called was enacted as part of the HIRE Act (Hiring Incentives to Restore Employment), by the Internal Revenue Service (IRS) of the US Treasury, and is expected to come into force in the coming year 2013.
It will affect the lives of individuals in, and manner of doing business with, every country around the world that has US citizens living and or working within their borders.
According to the laws of the United States, the US taxpayer is liable for tax on their global income. The purpose of FATCA then, is to cause US citizens living and working outside of the US to report on their assets (Financial or otherwise) to the US Government. This legislation will require that Foreign Financial Institutions (FFl's) report to the IRS on specified information about US citizens who use them to hold accounts and on Foreign Entities (FE's) that are owned substantially by US citizens.
As a result therefore, FATCA exposes BVI residents who are US citizens or green card holders, to the possibility of increased reporting obligations to the IRS and severe penalties for non-compliance".
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By this I mean residents of this territory who are US citizens, or are Green Card holders.
This initiative, the Foreign Account Tax Compliance Act or FATCA as it is commonly called was enacted as part of the HIRE Act (Hiring Incentives to Restore Employment), by the Internal Revenue Service (IRS) of the US Treasury, and is expected to come into force in the coming year 2013.
It will affect the lives of individuals in, and manner of doing business with, every country around the world that has US citizens living and or working within their borders.
According to the laws of the United States, the US taxpayer is liable for tax on their global income. The purpose of FATCA then, is to cause US citizens living and working outside of the US to report on their assets (Financial or otherwise) to the US Government. This legislation will require that Foreign Financial Institutions (FFl's) report to the IRS on specified information about US citizens who use them to hold accounts and on Foreign Entities (FE's) that are owned substantially by US citizens.
As a result therefore, FATCA exposes BVI residents who are US citizens or green card holders, to the possibility of increased reporting obligations to the IRS and severe penalties for non-compliance".
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IS OUR PREMIER HANDLING THIS FATCA ISSUE RIGHT?
I THINK NOT, AND HERE IS WHY
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Press Release Monday August 26th 2013 by Hon. Julian Fraser, RA
GOVERNMENT SELLOUT: FIRST UK'S PROTOCOLS NOW AMERICA'S FATCA
-INCOMPETENCE OR WEAKNESS, WHICH GOVERNMENT IS IT?-
Who gave the Premier of the Virgin Islands the right to trade the liberty of its citizens to a Foreign Government? By that I mean, does the Premier of the Virgin Islands have a mandate from the Citizens of the Virgin Islands who happen to also be Citizens of the United States, or Green Card holders, to seek and find personal information such as their Bank Accounts, Salaries, and Properties and report this information back to the Government of the United States?
This by the way, holds true for all United States Citizens and Green Card Holders in the Virgin Islands, whether they are Virgin Islanders or not. The Premier and his administration are overreaching and must be stopped. This impacts a lot of very unsuspecting persons, persons such as those who were born in the US and never lived a day there, but have amassed fortunes here in the Virgin Islands, but will now have their Properties, Savings Accounts, and Salaries voluntarily offered up to Uncle Sam by our Premier to be taxed. All this is happening and the Premier has a difficulty giving straight answers on the matter. It is like everything else where he behaves as if he is accountable to no one. Case in point: On the evening of Thursday May 30th 2013 in an address to my constituents and wider BVI at my Biannual District Meeting, I reported that: "The Premier has been hinting of his Government's intervention into a United States matter of tax collection with its citizens. The United States in its decision to hunt and tax its citizens and permanent residents across the globe on Property, Income, and Savings Interest is now allied with the NDP Government in the Virgin Islands. This is an invasion of privacy of the citizens of this territory which our Government should have nothing to do with. No other country on earth that I know of, regards the privacy of its citizens more highly than the United States of America. Their privacy is so sacred to them that they rather have guns in the hands of persons who will do harm to innocent children, rather than allow laws that will make it mandatory for full disclosure in order to qualify to own a gun. But yet, our Government is intending to intrude on Virgin Islanders privacy by collecting information on their citizenship, and immigrant status with the United States, diving into their Bank Accounts; diving into their Property ownership inclusive of inheritance; diving into their Incomes; and reporting this to the Government of the United States. This has nothing to do with neither the Tax Information Exchange Agreements, nor the Tax Haven issues that are hot in the news today. This is the only country that I know of, that is volunteering to do the United States policing of its citizens. The big question for you the citizens of the Virgin Islands; is the NDP government going to ask the US government to check the assets such as Property Ownership; and Incomes earned by Virgin Islanders and Belongers living in the United States and United States Virgin Islands and report it back here so we can tax them on it too"? After making that statement that Thursday evening, by the following Tuesday June 4th the Premier was out denying that this was the case. According to media reports he claimed, {In relation to the issue of invasion of privacy of residents, "I need only say that contrary to what is said in the address the BVI government is not collecting information on the citizenship and immigrant status with the United States on its citizens, nor is the government diving into their Property ownership or Income"}. Knowing full well that this Premier in his statement was far from my understanding and that his denial was consistent with his modus operandi, I did my research and cleared the air on the matter on June 6th in a Press Release. Quoting from the release as reported: {The Third District Representative also countered the Premier’s claim that the government “is not collecting on the citizenship and immigrant status with the United States, nor is the government diving into their property ownership or income.” |
He referenced a statement made by the Premier in the House of Assembly (HOA) on June 29, 2012 on the "Foreign Account Tax Compliance Act (FATCA)" and asked for an explanation.
Hon Fraser said, “In this statement it was revealed that a committee has been established for the sole purpose of exploring the option of a government to government treaty whereby the Virgin Islands would collect information on US Citizens and Green Card Holders and report it to the US Government.” According to Hon. Fraser,“the Premier needs to come clean on this”}. Mark well the Premier's denial of my charge in my May 30th address, but watch what the Premier is saying to you the people on August 20th, just past: ["Negotiations are still ongoing between the Virgin Islands and the United States on an Intergovernmental Agreement (IGA) which is expected to meet obligations under the Foreign Account Tax Compliance Act (FATCA)… We are of the very considered opinion that this course is the best one to adopt for the BVI. We have already commenced talks with the US Treasury and expect to continue to do so until a final agreement is reached. It is therefore very important that we all understand that the BVI is not being forced or coerced into finalizing an IGA, but instead we are of the opinion that this is what is best for the British Virgin Islands," Premier Smith told reporters yesterday, August 20]. The questions I have are first: which Premier is this? And second, he speaks of obligations under FATCA, whose obligations are they Mr. Premier? Those obligations are not those of the Government of the Virgin Islands. The Premier needs to keep the government out of the business of private citizens and residents. Especially when it does not concern us. The ramifications of his actions go beyond the eyes of ordinary citizens and will affect our economy in ways that are irreversible. Take for instance the many US citizens who often acquire Non Belonger Landholding Licenses and build vacation homes here valued in the millions of dollars. What are the chances of them continuing to come here knowing that the Premier will be sending to the US government information on the dollar value of their every investment. And further, what is the likelihood of those already here selling out their interest? This is also true for our major investors in our resorts and yachting facilities here on Tortola and on Virgin Gorda in particular. And the list goes on. The obligation to report these assets lies with the individual, and any banking institution involved, not the Government of the Virgin Islands. There is a reason Tax Lawyers and Tax Accountants exists, one such reason is that they are best qualified to report income to the authorities on behalf of their clients. The Government of the Virgin Islands is not. As far as the poor Virgin Islander is concern, your Premier will have someone go to Land Registry and see what properties you own, have it assessed and report the value to the United States Treasury and they will tax you on it. They will do the same with your Bank Account, and also your Pay Check. Is this the person you want as your Premier? Ask yourself the question. He has already compromised our financial autonomy with the United Kingdom with the Protocols, where they now tell us how to spend our own money, they are just about approving our budget, and God forbid we must borrow money; we have to get their permission, even from our own Social Security Board. And now he is about to make us subservient to the United States even while in our own country, by trading information on Land Inherited from our Ancestors, and compromising our liberties with FATCA. This cannot be right, and therefore is unacceptable. |
See What The Media Had To Report On My FATCA Press Release
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1 Virgin Islands News Online
Hon. Fraser accuses Premier of selling out privacy of VI citizens to US
-First UK's Protocols now America's FATCA -incompetence or weakness, which government is it?- Hon. Fraser asks
ROAD TOWN, Tortola, VI- “Who gave the Premier of the Virgin Islands the right to trade the liberty of its citizens to a Foreign Government? By that I mean, does the Premier of the Virgin Islands have a mandate from the citizens of the Virgin Islands who happen to also be citizens of the United States, or Green Card holders, to seek and find personal information such as their bank accounts, salaries, and properties and report this information back to the Government of the United States?”
Those are some of the questions Third District Representative and Opposition Member, Hon. Julian Fraser RA has rhetorically asked in a press release sent out to the media this morning, August 27, 2013. Hon. Fraser strongly believes that negotiations between the Virgin Islands and the United States on an Intergovernmental Agreement (IGA) which is expected to meet obligations under the Foreign Account Tax Compliance Act (FATCA) will ultimately result in an invasion of privacy and taxation for all US citizens and Green Card Holders in the Virgin Islands, whether they are Virgin Islanders or not. “This impacts a lot of very unsuspecting persons, persons such as those who were born in the US and never lived a day there, but have amassed fortunes here in the Virgin Islands, but will now have their properties, savings accounts, and salaries voluntarily offered up to Uncle Sam by our Premier to be taxed. All this is happening and the Premier has a difficulty giving straight answers on the matter. It is like everything else where he behaves as if he is accountable to no one,” Hon. Fraser stated. According to the very active Opposition Member, Premier Dr The Hon. D. Orlando Smith has repeatedly denied Hon. Fraser’s suspicions but his recent comments at a press conference further raise concerns. Hon. Fraser recalled that on Thursday May 30, 2013 in an address to his constituents and wider VI at his Biannual District Meeting, he reported that the Premier had been hinting of his Government's intervention into a United States matter of tax collection with its citizens. “The United States in its decision to hunt and tax its citizens and permanent residents across the globe on property, income, and savings interest is now allied with the NDP Government in the Virgin Islands. This is an invasion of privacy of the citizens of this territory, which our Government should have nothing to do with,” Hon. Fraser had charged. The Third District representative argued that no other country regards the privacy of its citizens more highly than the United States of America but yet the NDP Government is intending to intrude on Virgin Islanders privacy by collecting information on their citizenship, and immigrant status with the United States, diving into their bank accounts; diving into their property ownership inclusive of inheritance; diving into their incomes; and reporting this to the Government of the United States. “This has nothing to do with neither the Tax Information Exchange Agreements, nor the Tax Haven issues that are hot in the news today. This is the only country that I know of, that is volunteering to do the United States policing of its citizens. The big question for you the citizens of the Virgin Islands; is the NDP government going to ask the US government to check the assets such as property ownership; and incomes earned by Virgin Islanders and Belongers living in the United States and United States Virgin Islands and report it back here so we can tax them on it too?” Hon. Fraser had asked. The press release further stated that the following Tuesday, June 4, 2013 the Premier was out denying that this was the case. "I need only say that contrary to what is said in the address the BVI government is not collecting information on the citizenship and immigrant status with the United States on its citizens, nor is the government diving into their Property ownership or Income," Premier Smith had reportedly stated in the media. The release also referenced a statement made by the Premier in the House of Assembly (HOA) on June 29, 2012 on the Foreign Account Tax Compliance Act (FATCA). “In this statement it was revealed that a committee has been established for the sole purpose of exploring the option of a government to government treaty whereby the Virgin Islands would collect information on US Citizens and Green Card Holders and report it to the US Government,” Hon. Fraser recalled. |
Third District Representative Hon. Julian Fraser, RA (Left) strongly believes that negotiations between the Virgin Islands and the United States on an Intergovernmental Agreement (IGA) which is expected to meet obligations under the Foreign Account Tax Compliance Act (FATCA) will ultimately result in an invasion of privacy and taxation for all US citizens and Green Card Holders in the Virgin Islands, whether they are Virgin Islanders or not. Premier Smith told reporters on August 20, 2013 that negotiations are still ongoing between the Virgin Islands and the United States on an Intergovernmental Agreement (IGA) which is expected to meet obligations under the Foreign Account Tax Compliance Act (FATCA). Photo: VINO/File
“Mark well the Premier's denial of my charge in my May 30th address, but watch what the Premier is saying to you the people on August 20th, just past.”
Premier Smith had told reporters, “Negotiations are still ongoing between the Virgin Islands and the United States on an Intergovernmental Agreement (IGA) which is expected to meet obligations under the Foreign Account Tax Compliance Act (FATCA)….We are of the very considered opinion that this course is the best one to adopt for the BVI. We have already commenced talks with the US Treasury and expect to continue to do so until a final agreement is reached. It is therefore very important that we all understand that the BVI is not being forced or coerced into finalizing an IGA, but instead we are of the opinion that this is what is best for the British Virgin Islands." Hon. Fraser said he is particularly concerned of the so called obligations under FATCA as mentioned by the Premier as those obligations are not those of the Government of the Virgin Islands. He further said the Premier needed to keep the government out of the business of private citizens and residents. “The ramifications of his actions go beyond the eyes of ordinary citizens and will affect our economy in ways that are irreversible. Take for instance the many US citizens who often acquire Non Belonger Landholding Licenses and build vacation homes here valued in the millions of dollars. What are the chances of them continuing to come here knowing that the Premier will be sending to the US government information on the dollar value of their every investment? And further, what is the likelihood of those already here selling out their interest? This is also true for our major investors in our resorts and yachting facilities here on Tortola and on Virgin Gorda in particular. And the list goes on.” Hon. Fraser stated that the obligation to report these assets lies with the individual, and any banking institution involved, not the Government of the Virgin Islands. “There is a reason Tax Lawyers and Tax Accountants exists, one such reason is that they are best qualified to report income to the authorities on behalf of their clients. The Government of the Virgin Islands is not. As far as the poor Virgin Islander is concern, your Premier will have someone go to Land Registry and see what properties you own, have it assessed and report the value to the United States Treasury and they will tax you on it. They will do the same with your bank account, and also your pay check,” Hon. Fraser stated. The Opposition Member further alleged that Premier Smith has already compromised the Virgin Islands financial autonomy with the United Kingdom with the Protocols, “where they now tell us how to spend our own money, they are just about approving our budget, and God forbid we must borrow money; we have to get their permission, even from our own Social Security Board. And now he is about to make us subservient to the United States even while in our own country, by trading information on Land Inherited from our Ancestors, and compromising our liberties with FATCA.” It is Hon. Fraser's firm belief that the Premier and his administration are overreaching and must be stopped. |
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2 Platinum
Premier Smith Accused Of Selling Out To U.S.
BVI Platinum News: Published:
August 27, 2013
The National Democratic Party (NDP) Government led by Premier Hon. Dr. Orlando Smith is being accused of selling out the people of the BVI by trading their liberty to the United States (USA) Government under the proposed Intergovernmental Agreement (IGA), which is expected to meet obligations under the Foreign Account Tax Compliance Act (FATCA).
Hon. Julian Fraser, Third District Representative and Opposition Member in a statement today, August 27 said the Premier is now about to make residents subservient to the United States even while in the BVI by trading information on land inherited from their ancestors and compromising their liberties with FATCA. "Does the Premier of the Virgin Islands have a mandate from the citizens of the Virgin Islands who happen to also be citizens of the United States, or green card holders to seek and find personal information such as their bank accounts, salaries, and properties and report this information back to the Government of the United States," Mr. Fraser asked. These criticisms came after an announcement by Premier Smith during an August 20 press conference where he said negotiations are still ongoing between the BVI and the United States on an IGA. He indicated that the financial industry in the BVI was consulted on the matter and has agreed that indeed the IGA would be most beneficial. Mr. Fraser said those obligations are not those of the government of the Virgin Islands; and the Premier needs to keep the government out of the business of private citizens and residents. "Especially when it does not concern us. The ramifications of his actions go beyond the eyes of ordinary citizens and will affect our economy in ways that are irreversible. Take for instance the many US citizens who often acquire Non Belonger Landholding Licenses and build vacation homes here valued in the millions of dollars." He added, "what are the chances of them continuing to come here knowing that the Premier will be sending to the US government information on the dollar value of their every investment. And further, what is the likelihood of those already here selling out their interest? This is also true for our major investors in our resorts and yachting facilities here on Tortola and on Virgin Gorda in particular. And the list goes on." The Third District Representative said the obligation to report the assets lies with the individual and any banking institution involved, not the Government. He stated that there is a reason tax lawyers and tax accountants exists. "One such reason is that they are best qualified to report income to the authorities on behalf of their clients. The Government of the Virgin Islands is not. As far as the poor Virgin Islander is concern, your Premier will have someone go to Land Registry and see what properties you own, have it assessed and report the value to the United States Treasury and they will tax you on it. They will do the same with your bank account, and also your pay check," he lamented. |
Premier Dr. D. Orlando Smith (left) and Third District Representative, Hon. Julian Fraser
Phot Credit: Gordon French/BVI Platinum News At his August 20 press conference, Premier Smith said "We are of the very considered opinion that this course is the best one to
adopt for the BVI. We have already commenced talks with the US Treasury and
expect to continue to do so until a final agreement is reached. It is therefore very important that we all understand that the BVI is not being forced or coerced into finalising an IGA, but instead we are of the opinion that this is what is best for the British Virgin Islands."
Premier Smith stated that the U.S. has always had, a tax regime that taxes all US persons on their worldwide income, but it has been the case that many US persons do not pay their taxes when they are domiciled outside of the US. "In an attempt to increase compliance the US Government has introduced FATCA which is requiring all Foreign Financial Institutions or Foreign Financial Entities to report to the US government on the financial accounts held by US intuitions that hold accounts with them,"Premier Smith stated. He added that it is also important to realise, that FATCA places absolutely no obligation on foreign governments including, the BVI. Premier Smith said that Government realizes that it would be in the best interest of the industry in the BVI if foreign financial institutions operating locally were provided with an environment that provides some degree of comfort, gives assurance of compliance with BVI regulations; and laws; and provide ease in their cooperation with the US tax authorities. He stated that the IGA meets the objectives. Premier Smith indicated that Government will launch an education campaign to create awareness of FACTA and invites the public to be a part of the learning process. |
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3 BVI NEWS
FRASER: Premier trading freedom of citizens to ‘Uncle Sam’ through FATCA
BVI News Online - Tuesday, August 27th, 2013 at 1:52 PM
Opposition member Julian Fraser has suggested that the National Democratic Party government is trading the liberty of its citizens to the United States.
His claim comes days after Premier Dr. D. Orlando Smith announced that the BVI has agreed to negotiate an Inter-governmental Agreement (IGA) with the US Treasury. The negotiations are hinged to the controversial Foreign Account Tax Compliance Act (FATCA) which the United States is using in an attempt to get its citizens and companies in the BVI and elsewhere to pay taxes to the US Treasury. The move, if approved by the BVI government, would affect all US citizens here in the BVI, including those who hold both US and BVI citizenship. At a press briefing this month, Primer Smith noted that the BVI was not being forced into the FATCA negotiations, adding that local stakeholders have been consulted. BVI over-reacting? With Premier Smith hinting that the BVI may give the US the go-ahead to collect taxes herein the territory, Fraser has been left hopping mad. The Opposition member, in a statement on Tuesday, further claimed that “the Premier and his administration are overreaching and must be stopped”. He questioned whether consultations were held with US citizens here in the BVI; adding that ‘Uncle Sam” may soon be empowered to dive into their personal information including bank accounts, salaries and properties. “Who gave the Premier of the Virgin Islands the right to trade the liberty of its citizens to a Foreign Government?” Fraser asked, and went on to claim that Premier Smith has a problem giving ‘straight’ answers. |
Premier Smith (left) and Fraser (file photos)
The Opposition member continued: “This (FATCA) impacts a lot of very unsuspecting persons; persons such as those who were born in the US and never lived a day there, but have amassed fortunes here in the Virgin Islands, but will now have their Properties, Savings Accounts, and Salaries voluntarily offered up to Uncle Sam by our Premier to be taxed.”
He further stated that “the Premier needs to keep the government out of the business of private citizens and residents, especially when it does not concern us.” Economic fallout? Fraser went further; he claimed that the ramifications of any type of FATCA agreement would “affect our economy in ways that are irreversible”. He made reference to the many US citizens who he said build vacation homes here in the BVI. According to him, existing ones may pull out of the territory and new ones may decline to enter. “What are the chances of them continuing to come here knowing that the Premier will be sending to the US government information on the dollar value of their every investment,” Fraser asked. He warned that there may be similar fallout as it relates to major investors in resorts and yachting facilities here on Tortola and particularly on Virgin Gorda. |