Common Reporting Standard in the Cayman Islands - Application to Investment Entities (Revisited)
As the deadline for the filing of notifications to the Cayman Islands Tax Information Authority via the Cayman AEOI Portal in respect of (i) entities formed in 2015 for U.S. FATCA purposes and (ii) entities for UK CDOT purposes, approaches on 10 June 2016, we revisit some of the key issues on the Common Reporting Standard (CRS) and its application to Cayman Islands formed Investment Entities.
What is CRS?
The Common Reporting Standard (CRS) was developed by the Organisation for Economic Co-operation and Development (OECD) to establish a model for the automatic exchange of information on financial accounts among participating countries in order to combat tax evasion globally. The CRS became effective in the Cayman Islands from 1January 2016. Under the CRS, Cayman Islands’ Reporting Financial Institutions (including Cayman Islands domiciled investment funds) are required
(i) to establish arrangements (i.e. policies and procedures) to identify, and apply due diligence procedures to, an Account Holder or Controlling Person that is tax resident in a CRS Participating Jurisdiction;
(ii) to secure that due diligence information, and a record of the procedures taken to comply, must be retained for six years from the end of the year the information was obtained or the procedures were carried out;
(iii) to collect information and documentation from Account Holders about their tax residence status and to report certain personal and financial information to the Cayman Islands’ Tax Information Authority (TIA) which is the Cayman Islands
Competent Authority for the purposes of the CRS.
(Read more on the full PDF on website link below)