On 30 March 2017, Brazil reopened its so-called Special Regime of Exchange and Tax Regularization (“Regime Especial de Regularização Cambial e Tributária or “Rerct”) which was announced on 3 April 2017 (Link-Portuguese). This newly opened amnesty includes a 135% penalty on the tax due.
In our latest alert, with regard to the British Virgin Islands (“BVI”), we stated that “…the ITA has decided to extend both the UK CDOT and CRS deadlines to 30 June 2017.”
In fact, the International Tax Authority (“ITA”) in the BVI has extended the reporting deadline for CRS and UK CDOT to 31 July 2017 and the enrolment has been extended to 30 June 2017.
The Federal Central Tax Office (“Bundeszentralamt für Steuern” or “BZSt”) has sent an e-mail with the Subject: Guidance note on coordinated external tax audits with tax administrations of other states and jurisdictions (Link-German) (Link-English).
The 23 page guidance note provides principles which should apply with respect to the execution of coordinated external tax audits with tax administrations of other states and jurisdictions. The guidance note includes information on the legal basis for coordinated external tax audits within the EU and with third countries as well as joint external tax audits by the German tax administration. In addition, the guidance note provides practical direction on conducting coordinated audits.
On 1 March 2017, the German Ministry of Finance, in conjunction with the Federal Central Tax Office (“Bundeszentralamt für Steuern” or “BZSt”), sent an e-mail with the Subject: Automatic exchange of information under the Common Reporting Standard and the German implementing law – Publication of the official data schema (Link-German) which was also posted to its official website. The e-mail also contains information on the data submission channel to be used to submit reports for 2017 and subsequent years. Forms for individual and single data uploads will be available through the online portal of the BZSt.
As previously reported, on 27 March 2017, the Organisation for Economic Co-operation and Development (“OECD”) released the Second Edition of its Standard for Automatic Exchange of Financial Account Information in Tax Matters (Link) (Link-French) (Link-Spanish), more commonly referred to as the Common Reporting Standard (“CRS”).
In addition to this, the CRS FAQs have been updated (Link) to reflect responses to additional questions which have been raised. The newly added FAQs are shaded in yellow and include the following questions:
- Qualification of usufruct for CRS purposes
- Identification of Controlling Persons of Passive NFEs with Financial Institutions in the chain of legal ownership
On 11 April 2017, the Central Board of Direct Taxes in India issued a press release: Timelines for Closure of financial accounts under Rule 114H (8) of the Income-tax Rules, 1962 under alternative procedure of FATCA (Link). Accordingly, the press release reminds financial institutions of the requirements to “[…] obtain self-certification and carry out due diligence in respect of all individual and entity accounts opened from 1st July 2014 to 31st August 2015. Such self-certification and documentation was required to be obtained by the financial institutions by 31st August 2016, otherwise they were required to close the accounts and report the same if found to be a “reportable account” as per the prescribed due diligence procedure for preexisting account.”
On 7 April 2017, the U.S. Internal Revenue Service (“IRS”) published additional content to the FATCA – FAQs General (Link). The additions can be found under the General Compliance heading and include:
- Under what circumstances is a withholding agent required to collect a foreign TIN or date of birth on a beneficial owner withholding certificate?
- Is a beneficial owner withholding certificate invalid under Treas. Reg. §1.1441-1T(e)(2)(ii)(B) (published on January 6, 2017, in TD 9808) during calendar year 2017 if it does not include a foreign TIN or date of birth for the beneficial owner identified on the certificate?
On 11 April 2017, the IRS reminded users that there will be a testing session, from 19 June 2017 (8:00EST) until 14 July 2017 (17:00EST) (Link). The test session will be open to users that have completed IDES enrollment by 15 June 2017 (17:00EST). More information is available in the IDES Support page (Link) and the IDES Help Desk page (Link).
In addition, the below IDES FAQ has been added (Link):
The U.S. signed a Competent Authority Arrangement (“CAA”) with Algeria (Link) in accordance with the IGA signed between these jurisdictions (Link). In general, a Competent Authority Arrangement is a bilateral agreement between the U.S. and a treaty partner to clarify or interpret treaty provisions (Link). These CAAs establish the procedures for the automatic exchange obligations and for the exchange of information between these jurisdictions.
On 30 March 2017, PwC’s CITT Compare Tool was updated to reflect the latest information from Curaço and the Philippines. In addition, on 5 April 2017, the reporting deadlines for Isle of Man, Italy, Malaysia, Malta, Mexico, New Zealand and Taiwan were updated to reflect legislative changes. Please take this opportunity to re-run reports for those countries and use the latest information within your projects.