The T&T Chamber of Industry and Commerce is "wholly dissatisfied" that Government is seeking an extension of the September 30 deadline for legislation related to the Foreign Account Tax Compliance Act (FATCA).
In a media statement, the business group said while stringent scrutiny of the Bill at the level of a Joint Select Committee is appreciated, the matter should not have reached that point.
"The business community and, by extension, the population appears to be caught in the middle of this predicament, and rejects any attempt at what might well be political jousting on the part of our respective leaders. We therefore call upon the powers that be to act responsibly and with dispatch," the Chamber said.
"The critical importance of FATCA and its direct impact on Trinidad and Tobago's banking and financial systems has been ventilated time and again by the T&T Chamber, and by several other local special interest groups, including the Bankers Association of TT. The immediate implications of non-compliance are serious and far-reaching; among them, the disruption or termination altogether of banking relationships between businesses, financial service providers and non-compliant individuals."
The group further warned that US correspondent banking services such as wire transactions and currency transfer transactions will be disrupted or terminated, leading to a possible overall increase in the cost of doing business.
The statement continued: "Particularly in a time of economic decline, fewer things can be more damaging than an eroded country image that cripples economic growth. Failure to comply with legislation can lead to such a situation, negatively impacting upon whether or not Trinidad and Tobago remains attractive to foreign investment and open for business.
The Bankers Association of T&T (BATT) said it is supporting the passage of the Tax Information Exchange Bill, 2016, because it will enable T&T to solidify its Inter Governmental Agreement with the United States.
"This Act will provide the framework for financial institutions to comply with both the US Foreign Tax Compliance Act (FATCA) as well as Trinidad and Tobago law by reporting to our Board of Inland Revenue (BIR) on the personal and financial information of US persons who are subject to US tax laws," BATT said in a statement.
"The purpose of sharing that information with the BIR is for onward transmission to the Internal Revenue Service (IRS) who is the designated tax authority in the United States. US tax law requires that US persons report on their worldwide income and therefore the sharing of this information with our local tax authority is in support of US persons' reporting obligations."
BATT said it is committed to supporting this process for implementation of the country's FATCA obligations and will continue to work with the relevant authorities to ensure the appropriate legislation is passed.