GRA calls on Financial Institutions to make reports on accounts held by US Citizens

Mar 30, 2019 News

GRA Commissioner General, Godfrey Statia

The Guyana Revenue Authority (GRA) is mandated under the Foreign Accounts Tax Compliance Act (FATCA) to report accounts of United States (US) citizens to the US Internal Revenue Service (US-IRS) on an annual basis.
In fulfilling this obligation, the authority said via its website that Financial Institutions (FIs) with accounts held by US citizens are required to report such information to the GRA, the designated Competent Authority.
It said that reporting must be done through the Guyana Revenue Authority’s AEOI Portal which can be accessed via the link : https://ides.gra.gov.gy/.
FATCA, which was enacted in 2010 by the US Congress, is designed to prevent tax fraud and evasion by US taxpayers using offshore banking facilities. It creates a new regime of automatic tax information sharing between financial institutions.
At the 2016 signing, Finance Minister, Winston Jordan had said Guyana chose to be involved in this important venture not only because it will help to reduce tax evasion in the United States, but also, in Guyana, through the exchange of information between the two countries.
To fulfill the potential of FATCA to be a potent weapon in the fight against tax evasion and avoidance, the Finance Minister had said that Guyana would be required to undertake a number of measures to improve and strengthen its legislative and institutional arrangements.
“Thus, for example, Guyana amended Section 63 of the Financial Institutions ACT, Chap 85:03, Laws of Guyana, to designate the Guyana Revenue Authority as the competent Authority, on behalf of the Government of Guyana. This will allow Financial Institutions to provide the GRA with customer information on reportable accounts,” the economist said.
The Finance Minister said that the sharing of information across countries is important for the enforcement of domestic tax laws.
He had said, “By working together to increase transparency, both Guyana and the US will be able to detect and deter abuse of the tax system in both countries. This will enable better accountability within the global financial sector. The FATCA Agreement represents another step in our countries’ cooperation with each other, in order to combat money laundering and tax evasion and avoidance.”
Jordan continued, “Improving financial regulation and cooperation with international regulators has become an urgent priority in recent years, as the loss of correspondent banking relationships, due to de-risking, has put pressure on financial institutions in Guyana and the rest of the Caribbean region.”
He added, “Healthy correspondent banking relationships are essential because they facilitate trade, foster economic growth; create legitimate avenues for growing remittances and providing access to financial services.”

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