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The Department for International Tax Cooperation
("DITC") has released Version 2.0 of the Common Reporting
Standard ("CRS") Guidance Notes and clarified certain
areas:
FATCA/CRS – Notification and Reporting Deadlines
The Cayman Islands Automatic Exchange of Information
("AEOI") Portal will still remain offline until the
beginning of May 2017 due to software upgrades.
CRS notification function on the AEOI
Portal is scheduled to go live in the week of 10 May 2017
CRS reporting function on the AEOI
Portal is scheduled to go live in the week of 12 June 2017
In order to provide sufficient time to all Cayman Financial
Institution to file notification and reports, the authorities
aligned the deadlines for U.S. FATCA and CRS for this year:
The notification deadline for FATCA
and CRS is now 30 June 2017
The reporting deadline for FATCA and
CRS is now 31 July 2017
IRS Notifications – 2014 and 2015 U.S. FATCA
Reporting
The deadline for correcting any errors in respect of FATCA
reports for 2014 and/or 2015 is also 31 July 2017. The DITC's
will provide further guidance on corrections required for certain
types of FATCA reporting errors.
CRS – Reportable Jurisdictions
The list of Reportable Jurisdictions has been updated to include
Jersey for
2017 and also the
2018 provisional list of Reportable Jurisdictions has been
published.
CRS – Guidance Notes
The DITC clarified a number of topics including the
following:
Liquidating Entities
that were in existence in 2016 still need to comply with their
obligations for the year 2016 and file the respective reports with
respect to 2017 Reportable Jurisdictions. Similarly, Liquidating
Entities that were in existence in 2017 need to comply with their
obligations for the year 2017 and file the respective reports with
respect to 2018 Reportable Jurisdictions.
Each Cayman Reporting Financial
Institution is required to establish and maintain written
policies and procedures on how to comply with the Cayman
Islands CRS Regulations as well as how to implement and comply with
these policies and procedures. The policies and procedures should
include:
address any delegation of CRS
obligations;
application of the CRS due diligence
procedures; and
ensure that any information obtained
in accordance with the CRS Regulations or a record of the steps
taken to comply with the CRS Regulations in respect of a Financial
Account is kept for six years from the end of the year to which the
information relates or during which the steps were taken.
DMS International Tax Compliance Group can help
As a leading provider of International Tax Compliance
("ITC") services, DMS has been at the forefront of
discussions with managers across the U.S., Europe and Asia on how
best to comply with the increased volume and responsibility of CRS
and FATCA reporting. With CRS filings due for the first time across
fifty four countries, we have specifically seen strong interest
from our global client base in delegating the AEOI function to a
third party that has the resources and expertise to ensure full
compliance. As the filing deadlines approach, the DMS ITC team
would welcome the opportunity to further discuss with you, your new
requirements and our ITC solutions.
Services include:
Entity classification of your
entities and structures to determine the ITC Obligations and
analyzing the availability of reporting exemptions.
Registering and obtaining Global
Intermediary Identification Number ("GIIN") from the IRS
and completing any other registration or notification with local
authorities.
Reviewing governing documents and
subscription documents to determine the adequacy of disclosures
provisions.
Preparing and reviewing IRS Forms and
Self-Certifications.
Acting as Principal Point of
Contact/AEOI Delegate/ Responsible Officer to oversee and ensure
compliance with all aspects of the regulations in the respective
jurisdiction.
Reviewing and approving third party
investor classification, including relevant agreements with these
third parties.
Classification and remediation of your investor base.
Preparing and filing the reports in
the respective jurisdictions.
Consulting on technical and
operational aspects of these international tax information
regulations.
Preparing and reviewing the policies
and procedures as set forth in the Regulations.
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.
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