Cayman Islands Latest AEOI Announcements: CRS Guidance Notes Updated
On 13 April 2017 the Cayman Islands (‘Cayman') Department for International Tax Cooperation (‘DITC') made announcements regarding various international automatic exchange of information...
Cayman Islands
Wealth Management
On 13 April 2017 the Cayman Islands ('Cayman')
Department for International Tax Cooperation ('DITC') made
announcements regarding various international automatic exchange of
information ('AEOI') regimes including: the Common
Reporting Standard ('CRS'); the US Foreign Account Tax
Compliance Act ('FATCA'); the UK Crown Dependencies and
Overseas Territories ('UK CDOT'); and the European Union
Savings Directive ('EUSD').
Key changes
The Announcements are repeated in full below, but the following
are the key changes:
CRS Guidance Notes:
There is a new set of Guidance Notes. This is not yet available
on the DITC/Tax Information Authority ('TIA') website but
is available here.
Reportable Jurisdictions – The list has
been updated to include Jersey.
AEOI Portal :
CRS Notification – The AEOI portal should
be able to take Notifications in the week of 10 May
2017. Notifications have to be complete by 30 June
2017.
CRS Reporting – The AEOI portal should be
able to take Reports in the week of 12 June 2017.
Reports have to be complete by 31 July 2017. CRS
reporting must be completed using the CRS XML schema v1.0 or the
manual entry form on the AEOI Portal.
FATCA – The portal should be able to take
Reports and Notifications by the week of 10 May
2017.
FATCA Notifications – The deadline for
2017 will be 30 June 2017.
FATCA Reporting – The deadline for 2017
will be 31 July 2017. This is also the deadline
for correcting any errors in respect of FATCA reports for 2014
and/or 2015. FATCA reporting must be completed with the new IRS
FATCA XML v2.0 schema or the manual entry form on the AEOI Portal
which is based on that schema.
Solomon Harris
We at Solomon Harris continue to monitor and cover the
introduction of international AEOI regulations, including US FATCA
and the CRS and keep a close eye on updates to the Cayman AEOI
Portal.
AEOI
Regime |
Announcement |
CRS |
- The TIA has today issued CRS Guidance Notes version 2.0, which
accompany this advisory.
- The list of Reportable Jurisdictions has been updated to
include Jersey for 2017, and also the 2018 Reportable
Jurisdictions.
- The list is included in Appendix 4 to the Guidance Notes and
will also be published by Gazette Notice.
- Cayman Financial Institutions that are in liquidation or being
wound up in 2017 are required to fulfil their reporting obligations
(i) for the year 2016, with respect to 2017 Reportable
Jurisdictions, and (ii) for that part of 2017 in which they are in
existence, with respect to both 2017 and 2018 Reportable
Jurisdictions.
- AEOI Portal:
- A new AEOI Portal User Guide regarding FATCA/UK CDOT/CRS will
be available later this month or in early May.
- The CRS notification function on AEOI Portal is scheduled for
the week of 10 May 2017.
- The CRS reporting function on AEOI Portal is scheduled for the
week of 12 June 2017.
The DITC recommends that Cayman Financial Institutions
complete their CRS notification obligation as early as possible,
rather than wait until the CRS reporting function is first
available.
- CRS reporting must be completed with the CRS XML schema v1.0 or
the manual entry form on the AEOI Portal which is based on that
schema.
- The Individual and Entity Self-Certification forms are being
revised and will be available on the DITC's CRS Legislation
webpage and, at that time, will also be included in Appendix 5 of
the CRS Guidance Notes v2.0 on that webpage.
|
FATCA |
- The FATCA notification and reporting function on the AEOI
Portal will be available at the same time as the CRS notification
function is made available.
- The FATCA notification deadline is aligned with that for the
CRS this year, i.e. 30 June 2017.
- The FATCA reporting deadline is aligned with that for the CRS
this year, i.e. 31 July 2017.
- FATCA reporting must be completed with the new IRS FATCA XML
v2.0 schema or the manual entry form on the AEOI Portal which is
based on that schema.
- The deadline for correcting any errors in respect of FATCA
reports for 2014 and/or 2015 is 31 July 2017. The DITC's AEOI
News & Updates webpage will provide further guidance on
corrections required for certain types of FATCA reporting
errors.
|
UK
CDOT |
- As a reminder, Reporting Financial Institutions and trustees of
Trustee Documented Trusts should have completed all remediation due
diligence work for Pre-Existing Accounts under UK CDOT by 30 June
2016.
- For reporting in 2017 with respect to the 2016 reporting year,
a Cayman Financial Institution which has reporting obligations
under UK CDOT:
- Will not be able to use the UK CDOT reporting function on the
AEOI Portal.
- Must instead include in its single CRS file (i.e. whether CRS
XML schema / manual entry) in respect of the UK as Reportable
Jurisdiction:
- all information that would be reportable under UK CDOT;
and
- if it is has reporting obligations under the CRS, any
information that is reportable under the CRS with respect to the UK
as Reportable Jurisdiction which are not already reported by virtue
of 2.b.i above
- For reporting in 2018, onwards there will be no reporting on
the basis of 2.b.i above and all reporting on UK Persons will be on
the basis of 2.b.ii above.
|
EUSD |
Reporting of Savings
Income Information for EUSD purposes is not required from this year
onwards because this information will be covered by reporting under
the CRS. |
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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