Automatic Exchange of Information Update - Q1 2018

 

On March 15, 2018, the Cayman Islands Tax Information Authority (“TIA”) published:

  • a revised AEOI Portal User Guide (Version 4.0);
  • updated CRS Guidance Notes (Version 3.0); and
  • an updated Entity Self-Certification Form.

Industry is advised that the Department for International Tax Cooperation (“DITC”) has reopened the Cayman Islands AEOI Portal for notification and reporting for Automatic Exchange of Information (“AEOI”) in relation to the Foreign Account Tax Compliance Act (“FATCA”) and the Common Reporting Standard (“CRS”).

The Regulatory deadlines are:

  • 30 April 2018 for notification (i.e. enrolment)
  • 31 May 2018 for reporting for the 2017 calendar year

The AEOI Portal has new functionality that allows Users to make:

  • PPoC Change Requests
  • Authorising Person Change Requests
  • FI Deactivations

AEOI Portal User Guide

The AEOI Portal User Guide has been revised and the current version 4.0 is available here:

Cayman Financial Institutions and their agents and advisers must refer to this version rather than to version 3.2.1 or any other prior version.

New CRS Guidance Notes v3.0 (updated 20 March 2018)

The CRS Guidance Notes v3.0 dated 15 March 2018 has been published and is available here:

The CRS Guidance Notes v3.0 supersedes all earlier versions of the CRS Guidance Notes. A non-exhaustive summary of key changes is set out below.

Summary of changes made to CRS Guidance Notes TopicChange to CRS Guidance NotesPage(s)
Accuracy of Information / DITC Compliance Team

DITC will use a new email address for compliance issues regarding AEOI:

DITCcompliance@gov.ky 

10

Key Dates under the CRS

This list has been updated20 and 21

CRS Participating Jurisdictions
CRS Reportable Jurisdictions

Revised lists published 5 January 201822 and 23, Appendixes 2 and 3
Entity Self-Certification / Controlling Persons10% threshold for Controlling Person of an Account Holder that is a legal person classified as a Passive NFE; new template; remediation by 31 December 201820, 21, 32, 33, 41 and 42

Self-Certification required but not obtained

Rule for closing account33
Cayman Financial Institutions that are in liquidation or being wound upRecord-keeping post-dissolution38
Migration of Cayman Financial InstitutionsRequirements on the CFI39
Indirect distributions by a trustReporting requirements48 and 49

Updated Self-Certification Form

The Entity Self-Certification has been revised and the current version is available here:

With effect from 1 April 2018, Cayman Financial Institutions and their agents and advisers must use this version of the Entity Self-Certification rather than any prior version.

The revision (see footnote 22 on page 17) is necessary to clarify that the threshold for a “Controlling Person” in respect of a legal person is direct or indirect ownership or control of “10% or more” of the shares or voting rights in the legal person, being the threshold specified by the Anti-Money Laundering Regulations, 2017 which implement the FATF Recommendations in the Cayman Islands. This revision only applies to the CRS; the corresponding threshold for FATCA remains “more than 25%”.

Cayman Financial Institutions must remediate any affected accounts by 31 December 2018 so they are in a position to report on Controlling Persons who are Reportable Persons under the CRS in 2019 based on the 10% threshold.

IRS Error Notifications - 2014 and 2015

US FATCA Reporting CFIs MUST NOT attempt to address any IRS notifications in respect of 2014 and 2015 US FATCA Returns until they receive further guidance from the DITC.

  1. For the avoidance of doubt, a CFI will not be deemed to be in contravention of its US FATCA reporting it follows this instruction.
  2. In due course, the DITC will:
    • Publish a revised User Guide to explain how CFIs must address IRS notifications.
    • Email specific guidance on how to resolve particular types of IRS notifications for 2014 and 2015 US FATCA Returns to the Principal Point of Contact of affected CFIs.

 


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

If you would like further information please contact:


Simon Yard
Senior Associate
Tel:(+1 345) 814 7931
simon.yard@stuartslaw.com