By Kiana WilburgFor years, Governments around the world have tried to prevent major players from evading taxes. To avoidShawn Naughtoncertain measures attached to reporting their wealth, some persons have resorted to placing their ill-gotten wealth in accounts outside of the country.This is the very situation before tax chiefs in countries like Guyana and global superpower,Cheap NFL Jerseys, the United States of America (US). Acknowledging that international ways of hiding money, lawfully and unlawfully attained, and evading taxes, call for international ways of stopping it, the US in 2010 implemented the Foreign Account Tax Compliance Act (FATCA).In this series, I will share with you an extract of my interview with Chartered Accountant Shawn Naughton, who has a firm understanding of how FATCA works in fighting tax evasion and how Guyana stands to benefit from signing on to the agreement.Naughton has written on the issue extensively, in particular his publication called, “FATCA; Guyana’s Pilot into International Tax”.?? He has always been concerned about the tax revenue being lost to Guyana. The following are our exchanges:?Kaieteur News (KN): You have written on FATCA extensively. What is the main objective of your financial publication?Shawn Naughton (SN): Guyana has a few international tax agreements and as such Guyana remains isolated from the world in regards to sharing and obtaining international tax information. The main objective of my article is to let our citizens know about FATCA so they will know how it may affect them; as well as how the USA is benefiting from international tax and how Guyana can also benefit by making sure international income is properly taxed here in Guyana.KN: Could you explain for our readers, what FATCA is?SN: Sure. FATCA is an international tax tool for improving compliance by US taxpayers with the tax laws of the USA. The US tax laws provide that all its citizens and resident taxpayers are to be taxed on their worldwide income.The problem with this law is both with voluntary compliance and enforcement.?? Typically, US taxpayers would report income earned on assets situated in the USA to the IRS, but would not report income they earned and assets they hold, in say Barbados, to the IRS. This might be because the taxpayer is unaware of his obligation to report his worldwide income and assets. It could also be because he is aware that should he not report foreign income and assets, the IRS would find it near impossible to find out about such unreported income and assets.FATCA, as an international tax tool, attempts to get the needed information directly from foreign revenue authorities, such as the GRA, which receives the FATCA information from financial institutions, in which the taxpayers with some ties to the USA have deposited income.KN: So FATCA provides alternatives to getting the needed information should foreign income and assets not be reported by US taxpayers?SN: Well, yes and no. FATCA does provide an alternative source of the needed information. The information is however to be received by the IRS (from the foreign revenue agencies and/or financial institutions) whether or not the foreign income/assets are reported by the taxpayer. This allows for the cross-checking of information received under FATCA with that reported by the relevant taxpayer.Simply stated, the USA wants information on foreign assets held by its taxpayers. The USA will also be able to better locate its taxpayers as a result of information received under FATCA. From this information, the USA will be able to determine which taxpayers have not been reporting all of their income and assets. This knowledge could then lead to the relevant persons being assessed to additional taxes and associated penalties by the IRS.KN: Guyana has many US citizens living and doing business here for years.?? Would these persons and their businesses be affected by further taxing?SN: It is expected that FATCA will identify over eight million US citizens who reside outside of the USA. Under the tax laws of the USA,Wholesale China Jerseys, these persons are responsible for paying taxes on their worldwide income which, of course,Cheap Jerseys Supply, includes income earned in Guyana.If the persons you refer to were not complying with this requirement, they could be assessed to additional taxes and associated penalties (for non-compliance) by the IRS.?? It should however be noted that some businesses are recognized as separate from the (US) persons who own these businesses. Such entities are not likely to be subject to US tax, as these entities would be resident for tax purposes outside of the USA.Put another way, the person could be a US tax person while the entity he owns is a resident of Guyana. Note that whether the entity is considered separate from it