Unless otherwise stated, capitalised terms used herein shall
have the meaning given to them in prior updates.
FATCA Notification and Reporting Deadlines Extended
The Cayman Islands Department for International Tax Cooperation
("DITC") has issued an industry advisory advising that it will be
adopting a soft approach to the upcoming 30 April notification
deadline for US and UK FATCA and 31 May reporting deadline for both
US and UK FATCA for 2016.
According to the advisory, Cayman Islands reporting financial
institutions that submit notifications for US and UK FATCA to the
DITC on or before Friday, 10 June 2016, and file returns for both
US and UK FATCA on or before Friday, 8 July 2016, will not attract
any adverse consequences or enforcement measures.
The advisory confirms that the soft approach to enforcement of
the notification and reporting deadlines for 2016 is in recognition
of the first year of compliance for UK FATCA and the recent lack of
availability of the AEOI Portal, of which an updated version of the
AEOI Portal User Guide has been
recently posted on the DITC website.
Common Reporting Standard – Ongoing Due Diligence
As noted in our prior update of 10 December 2015, the requirements of CRS
became operative in the Cayman Islands from 1 January 2016,
therefore any account opened in a Cayman Islands reporting
financial institution from this date is subject to new account due
diligence procedures (including the account holder providing a
self-certification as to tax residency) and any account opened
before such date is subject to pre-existing account due diligence
procedures to identify reportable accounts. Clients are
reminded that the due diligence on pre-existing high value
individual accounts needs to be completed by the end of this
year. CRS reporting in 2017 will therefore cover all high
value individual accounts that were pre-existing as of 31 December
2015 and all new accounts opened from 1 January 2016 onwards.
UK FATCA Alternative Reporting Regime
The Alternative Reporting Regime
("ARR") will only be available for a
limited period of time under UK FATCA (before the transition to CRS
in 2017) and therefore the DITC will be accepting ARR reporting via
an agreed "ARR Election Template",1 which Financial
Institutions may use to provide details of any account holder who
has made an election for the ARR, subject to receipt by such Cayman
Islands reporting financial institution of a valid
self-certification and verification of the account holder's UK
Resident Non-Domiciled status.
It is now anticipated that the DITC will issue CRS guidance
notes in Q2 2016. As per our prior update of 10 December 2015
(see footnote 3), these shall be limited to practical aspects of
CRS that are specific to Cayman.
For further information or advice on the application of FATCA or
CRS, please liaise with your usual Maples and Calder or MaplesFS
contact, or any one of our AEOI experts listed above or on our
dedicated FATCA and CRS webpage.
1 Further particulars can be provided on
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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.
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