Domestic legislation to implement the US and UK Foreign Account
Tax Compliance Act ("FATCA") has come
into force on the Isle of Man today, 30 June 2014.
With compliance with certain provisions of FATCA taking effect from 1 July 2014, the implementation of the legislation is a timely reminder to financial institutions on the Isle of Man that FATCA is here to stay and that automatic exchange of information is becoming the new normal.
The specific pieces of legislation are the International Tax Compliance (United States of America) Regulations 2014 and the International Tax Compliance (United Kingdom) Regulations 2014 ("the Regulations"). Made under the Income Tax Act 1970, the Regulations address such issues as the scope of the definition of 'Reportable Account', the requirement to identify Reportable Accounts as well as certain modifications for due diligence requirements and reporting. They also set out the offences and general provisions relating to compliance.
The Regulations provide an additional layer of information to be incorporated into FATCA compliance procedures and controls alongside the requirements of the inter-governmental agreements and the draft Guidance Notes.
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.