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US citizens in Cayman warned to swot up on HIRE

Posted on Tue, 05/04/2010 - 06:18 in

(CNS): US citizens living and working in Cayman will need to familiarize themselves with new legislation that affects their tax obligations Cayman Finance has said. The Hiring Incentives to Restore Employment Act of 2010 (HIRE act) passed in March 2010 has new reporting obligations on US taxpayers in connection with non-US accounts and investments. This new legislation will affect US passport holders in Cayman and provides the IRS with tools to find and prosecute US individuals hiding assets overseas. The new rules also limit the ability of non-US investors to access US markets Cayman Finance warned on the eve of its summit where the issue will be discussed.

 
Steven Cantor will be the guest speaker on Thursday 6 May at the Cayman Finance Summit taking place at the Ritz Carlton. Cantor will explain this latest legislation which will affect US passport holders in Cayman. 
 
In addition to its impacts on almost every investor, whether an individual, a trust or a family office, and every financial institution -- private bank, fund and collective investment structure worldwide – the HIRE Act provides the IRS with “new tools to find and prosecute US individuals that hide assets overseas”. 
 
New 30% withholding obligations will be imposed upon non-US financial institutions and investment structures as well as the individuals who invest through them on US investments unless they agree to undertake due diligence and turn over account information about all of their US citizens, green card holders and US tax resident clients.
 
These rules will apply to all of those people in Cayman who have US citizenship.
 
The new rules also limit the ability of non-US investors to access the US markets via derivatives, loan notes and other synthetic arrangements and will impact those US taxpayers who have homes, artwork, planes, yachts and other personal use property held in non-US trust structures.
 
To get the full brief of this new law and how it will affect US citizens in Cayman including those with dual citizenship, attend the Cayman Finance Summit on 6 May 2010. To register for the Summit log on to www.caymanfinancesummit.ky or call 623 6700.
 
 

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