The IRS has recently been declaring a global war on banking secrecy. This article discusses how the IRS has been clamping down on tax havens in the Cayman Islands. “Cayman National Securities and Cayman National Trust handled about $130 million in undeclared U.S. assets at their peak.” In 2014, the territory agreed to comply with the Foreign Account Tax Compliance Act (FACTA). This new law has caused Cayman banking companies to work with the IRS in cracking down on tax evasion. The IRS is getting serious about its efforts to close down tax havens and is putting pressure on territories like the Cayman islands to comply with its investigations. There was a time when the Cayman Islands was a very popular destination for people wanting to avoid certain taxes but now those times might be changing.
See Scott Martin, World War on Tax Havens Hits the Caymans: Bankers Turn Over $130M Clients to IRS, Trust Advisor, March 14, 2016.
Special thanks to Jim Hillhouse for bringing this article to my attention.
