The Grenada House of Representatives has passed the controversial Foreign Account Tax Compliance Act (FATCA), Inter-Governmental Agreement with the United States.
The FATCA legislation demands that foreign banks provide information to America’s Internal Revenue Service (IRS) on any customer deemed to have more than US$50,000.
Washington has said that the legislation aims to crack down on tax dodgers who hide hundreds of millions of US dollars in offshore accounts annually in an effort to evade paying taxes.
Unlike other Caribbean countries, the Grenada government controls all 15 seats in the House of Representatives and there was no problem with the passage of the legislation.
It will now go before the Senate later this month where the debate is likely to be more hectic given the interest groups represented in the Upper House.
According to the FACTA legislation, the Comptroller of Inland Revenue has been declared the competent authority with whom the IRS shall have direct communications when it comes to seeking information.
Failure to comply with such a request is a summary offense punishable by a fine not exceeding EC$10,000, according to the FACTA legislation 2017.
The legislation once approved will be applied retroactively covering the years 2014, 2015 and 2016.