In the past year, four more Caribbean nations have made their banking systems more transparent to the Internal Revenue Service in return for favorable tax status for U.S. meetings. Antigua & Barbuda, The Bahamas, The Cayman Islands, and The British Virgin Islands join 10 other Caribbean-area destinations where a U.S. company can take the same tax deductions as they would for a U.S.-based meeting.
In general, business meetings held outside North America are not tax-deductible unless they pass an “as reasonable” test: It must be as reasonable to hold the meeting outside the U.S. as inside. However, meetings in countries that have signed the Tax Information Exchange Agreement with the U.S. are not held to that standard. The agreement allows the IRS to view heretofore private banking records in cases of tax evasion and money laundering.
Other TIEA signatories include Barbados, Bermuda, Dominican Republic, Grenada, Guyana, Jamaica, St. Lucia, Trinidad & Tobago, and Venezuela.