Following the expiration of the 29 May 2015 notification
deadline with the Cayman Islands Tax Information Authority (the
"TIA"), the next step for all Cayman
Islands Reporting Financial Institutions (each an
"RFI") is to submit a return (the
"FATCA Return") setting out certain
details of any US Reportable Accounts that they may have maintained
during the 2014 calendar year. This may include any pre-existing
accounts and new accounts identified as reportable in 2014. As
outlined in our prior updates, the FATCA Return is submitted
through the TIA'sAutomatic of Exchange of Information Portal
(the "Portal") and needs to be submitted
on or before 26 June 2015. The FATCA Return can be submitted
through the Portal in either XML format or by entering data
manually in a web form.
What does the FATCA Return need to contain?
The FATCA Return must contain the following information in
respect of each Reportable Account that has been maintained by the
RFI at any time during the 2014 calendar year:
the name and address of the account
the account holder's US federal
taxpayer identifying number (unless the account holder is a
pre-existing account and the RFI does not hold the taxpayer
identification number, in which case, for any pre-existing account
holders that are individuals, their date of birth must instead be
reported if the RFI has been provided with such date);
if an account is identifiable by an
account number, that number or, if not, its functional
the balance or value of the account,
including, in the case of a cash value insurance contract or
annuity contract, the cash value or surrender value, as of the end
of the calendar year or, if the account was closed during the year,
the balance or value on the date that the RFI closes the
if the account holder is a passive
NFFE that has a Controlling Person who is a Specified Person, the
name and address of that Specified Person, and, if that person is
an individual, that person's US federal taxpayer identifying
number and date of birth;
the RFI's Global Intermediary
Identification Number; and
a statement as to whether paragraph 5
of Article 4 of the US IGA applies to the RFI (i.e. where the RFI
may have Related Entities or branches that are non-participating
financial institutions) and, if it does, whether the conditions
under subparagraphs (a) to (c) of that paragraph have been
Although the due diligence procedures for UK FATCA should still
be undertaken, the UK FATCA Return in respect of the 2014
reportable period is not required to be submitted to the TIA until
31 May 2016. At that time, RFIs will need to submit two UK FATCA
Returns: one in respect of the 2014 reporting period, and one in
relation to the 2015 reporting period.
The information required to be submitted under the UK FATCA
Return is very similar to that described above in relation to US
FATCA, other than the inclusion of the account holder's
national insurance number and their date of birth if they are an
individual. For pre-existing accounts, there is no requirement to
include the national insurance number for calendar years before
2017, if such number is not held by the RFI.
Are NIL Returns Required?
The Tax Information Authority (International Tax
Compliance)(United States of America)(Amendment)(No.2) Regulations,
2015 and The Tax Information Authority (International Tax
Compliance)(United Kingdom)(Amendment)(No.2) Regulations, 2015
were both gazetted on 29 May 2015 and confirm that nil returns are
no longer required to be filed, but that an RFI may choose to file
a nil return should it wish to do so. The TIA have also noted in
Version 1.2a to the Portal User Guide that nil returns are not
mandatory, but that they may be submitted at the option of the
What is happening with the OECD Common Reporting Standard?
On 16 June 2015, the Cayman Islands Ministry of Financial
Services, Commerce and Environment issued an Industry Advisory noting that specific
Regulations would be issued in October 2015 in relation to
implementing the Common Reporting Standard
("CRS") in the Cayman Islands, and that
Financial Institutions would need to implement due diligence
procedures from 1 January 2016 to determine the tax residency of
all account holders. Pre-existing accounts will be those maintained
on 31 December 2015 and new accounts would be those opened from 1
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
This webcast focuses on the impact FATCA and CRS are having on structured finance vehicles set up in the BVI, Cayman Islands and Ireland and covers in detail the impending reporting and notification deadlines in each of these jurisdictions.
On the 9 September 2016 the MFSA issued feedback to its consultation of the 1 April 2016 in relation to intra-group loans.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).