The Department for International Tax Cooperation (DITC) has issued an Industry Advisory regarding the common reporting standard (CRS), US FATCA, UK CDOT and the EUSD regime, which have a number of implications according to law firm Conyers Dill & Pearman.
Revised CRS Guidance Notes version 2.0 have been issued and at Appendix 4 the 2017 list of Reportable Jurisdictions has been updated to include Jersey. There is also a provisional list of Reportable Jurisdictions for 2018.
The DITC has also confirmed that 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.
The Individual and Entity Self-Certification forms issued by the DITC are in the process of being revised and will be available on the DITC’s website in due course.
In terms of US FATCA reporting deadlines will now be aligned with the CRS reporting deadlines. FATCA reporting should be completed using the new IRS FATCA XML version 2.0 schema or the manual entry form on the AEOI Portal which is based on that schema.
The FATCA notification deadline is now 30 June 2017. The FATCA reporting deadline is now 31 July 2017. The deadline for correcting any errors in respect of US FATCA reports for 2014 and/or 2015 is 31 July 2017. The DITC proposes to issue further guidance on corrections required for certain types of US FATCA reporting errors in due course.
In terms of UK CDOT, reporting Financial Institutions and trustees of Trustee Documented Trusts should have completed all remediation due diligence for Pre-Existing Accounts under UK CDOT by 30 June 2017. Further, for reporting in 2017 with respect to the 2016 reporting year, a Cayman Financial Institution which has reporting obligations under UK CDOT will be required to report in the CRS file all information that would be reportable under UK CDOT.
Finally, the law firm noted that Reporting of Savings Income Information for EUSD purposes is not required from this year onwards because this information will now be covered by reporting under CRS.
Department for International Tax Cooperation, DITC, Conyers Dill & Pearman, US FATCA, Cayman Financial Institutions
