News & Insights

FATCA & CRS Update - Q2 2017

The Department for International Tax Cooperation (“DITC”) has issued a number of Industry Advisories.

The Department for International Tax Cooperation (“DITC”) has issued a number of Industry Advisories regarding the CRS, US FATCA and UK FATCA, which have a number of implications, as follows:

  • Revised CRS Guidance Notes, version 2.0, have been issued which are available via the following link - http://www.tia.gov.ky/pdf/CRS_Legislation.pdf.  
  • There is a list of CRS Reportable Jurisdictions for 2017 and 2018 in the CRS Guidance Notes.  However, since publication of the CRS Guidance Notes, a revised list of Reportable Jurisdictions has been published in Extraordinary Gazette No 49/2017.  Barbados, Curacao and Niue will now be Reportable Jurisdictions for reports in 2018 onward instead of 2017.
  • The DITC has also made available on its website the revised Individual and Entity Self-Certification forms (available via the following link - http://www.tia.gov.ky/pdf/CRS_Legislation.pdf).  The revised forms are also exhibited as Appendix 5 to the CRS Guidance Notes.
  • The DITC has published AEOI User Guide v3.2 which now includes:
    1. Module V – CRS Reporting to be used for 2016 CRS returns to be submitted in 2017; and
    2. New information in Amended, Void and Corrected US FATCA Returns in Sections 4 to 7 of Module IV – US FATCA Reporting to be used as applicable in connection with 2016 US FATCA Returns submitted in 2017.
  • The DITC has stated in its Advisory that users of the AEOI Portal MUST review the 3.2 version before continuing to operate the Portal. The User Guide is available via the following link - http://tia.gov.ky/pdf/User_Guide.pdf.
  • US FATCA reporting deadlines are now aligned with the CRS reporting deadlines (being 31 July 2017). 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.
  • Extended deadline for new notifications – All Cayman Financial Institutions must register on the AEOI Portal for US FATCA and CRS (or vary their existing US FATCA/UK FATCA registrations to add CRS) even if they have no reporting obligations by 31 July 2017.
  • Cayman Islands Financial Institutions that have reporting obligations under US FATCA and CRS MUST proceed to submit their reports as soon as possible and in any event before the deadline of 31 July 2017.  The DITC has advised that high levels of traffic on the AEOI Portal may cause delays.
  • In terms of UK FATCA, reporting Financial Institutions and trustees of Trustee Documented Trusts should have completed all remediation due diligence for Pre-Existing Accounts under UK FATCA 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 FATCA will be required to report in the CRS file all information that would be reportable under UK FATCA.

This publication is for general guidance and is not intended to be a substitute for specific legal advice. Specialist advice should be sought about specific circumstances.