United Kingdom updates 2018 CRS Reportable Jurisdiction List

On 15 May 2018, Her Majesty’s Revenue & Customs (“HMRC”) released an update of the List of Reportable Jurisdictions in the United Kingdom. This list of Reportable Jurisdictions with which information will be exchanged under the Common Reporting Standard (“CRS”) can be found on HMRC’s website (Link).

According to the updated list, the following jurisdictions have been removed: Antigua and Barbuda, Brunei Darussalam, Grenada, Macao (China), Trinidad and Tobago and Vanuatu. In this respect, the HMCR announced that reports being submitted in May 2018 should not include financial account information held by tax residents of these jurisdictions. Nevertheless, as this change is very close to the reporting date, HMRC recognizes that Financial Institutions may have already compiled their files and may be unable to remove such accounts in a timely manner. In that case, HMRC will remove any excess data prior to the exchange with Reportable Jurisdictions.

Isle of Man releases Industry Advisory Note on AEOI

On 11 May 2018, the Isle of Man Treasury released an Industry Advisory Note on the Automatic Exchange of Information (“AEOI”) (Link). Major topics covered within the Note are:

  • The Isle of Man Reporting Deadline, which will be the 30 June 2018;
  • The Information Providers online service, which has a maximum file size limit of 75mb; and,
  • Corrections, deletions and additions to FATCA and CRS files, which can be made after the initial report has been filed, to correct any identified missing data or errors in the data previously submitted.

The Industry Advisory Note is applicable to all Isle of Man Financial Institutions, Sponsors and Third Parties.

Finland updates FAQs on FATCA and CRS

In 2018, the Tax Administration of Finland published a revised version of the Frequently Asked Questions (“FAQ”) on the Foreign Account Tax Compliance Act (“FATCA”) and the Common Reporting Standard (“CRS”) (Link-Finnish). This new version includes the stipulations of the US Internal Revenue Service Notice 2017-46 (Link) from 25 September 2017, which provides guidance for Financial Institutions (“FIs”) required to collect Tax Identification Numbers (“TINs”) and dates of birth under either the temporary regulations under Chapter 3 of the Internal Revenue Code or a Model 1 intergovernmental agreement (“IGA”). Finland issued this new FAQ, which advises Finnish FIs to insert nine capital letters (“AAAAAAAAA”) in the TIN field, provided that the TIN is not available and that all the three below listed conditions are met.

The Competent Authority of the U.S. will not determine significant non-compliance with the obligations under the IGA solely on the basis of a failure of a reporting FFI to obtain and report each required U.S. TIN, provided that the reporting FI:

  • obtains and reports the date of birth of each account holder and controlling person whose US TIN is not reported;
  • requests annually from each account holder any missing required US TIN; and,
  • Before reporting information that relates to calendar year 2017 to the partner jurisdiction, searches electronically searchable data maintained by the reporting FFI for any missing required US TINs.

The FAQs also provide information on other FATCA and CRS topics, such as Nil Reporting and Self-Certification.

Australia updates information on how to report US TINs

On 4 May 2018, the Australian Taxation Office (“ATO”) released news on Foreign Account Tax Compliance Act (“FATCA”) reporting regarding the U.S. Tax Identification Number (“TIN”) (Link).

According to the update, the requirements for missing U.S. TINs differ for 2017 and 2018 reporting. After due diligence actions have been undertaken:

  • For the 2017 calendar year reports, due to be reported by 31 July 2018, one must use nine zeros (000000000) to populate the US TIN data element.
  • For the 2018 calendar year reports, due to be reported by 31 July 2019, one must use nine capital As (AAAAAAAAA) to populate the US TIN data element. ATO systems will be changed to accept nine “As” and not nine zeros for the 2018 and 2019 reporting periods.

Saint Lucia releases new version of the FATCA Guidelines and Procedures

In April 2018, the Island of Saint Lucia’s Inland Revenue Department (“IRD”) released v.4.0 of its Foreign Account Tax Compliance Act (“FATCA”) Guidelines and Procedures (Link). These guidelines highlight some of the issues concerning FATCA reporting in Saint Lucia, and must be used in conjunction with the FATCA Intergovernmental Agreements (“IGA”), Internal Revenue Service (“IRS”) guidelines, the relevant laws of Saint Lucia, and any other documents distributed by the IRD and IRS with respect to FATCA.

According to the new version, all FATCA reports should be submitted to the Inland Revenue Department on or before 30 June, each year, for the relevant income years to be reported.

Bermuda amends CRS Regulations for 2018

On 11 May 2018, the Government of Bermuda released the “International Cooperation (Tax Information Exchange Agreements) Common Reporting Standard (“CRS”) Amendment Regulations 2018 (BR 39/2018)” (Link).

The International Cooperation (Tax Information Exchange Agreements) Common Reporting Standard Regulations 2017 are amended in Regulation 6, by revoking paragraph (2) and substituting “(2) If during the calendar year in question a Reporting Financial Institution maintains no Reportable Accounts, the Reporting Financial Institution shall, in accordance with these Regulations, file a nil return.”.

More information on AEOI in Bermuda can be found on the official website of the Government of Bermuda (Link).

Guernsey issues Reportable and Participating Jurisdiction List

In addition to the Bulletin with additional validations and corrections for the Reporting Period 2016 on the Common Reporting Standard and US Foreign Account Tax Compliance Act (“FATCA”) December 2017, the States of Guernsey (Link), Guernsey also released Bulletin 2017/9 which includes the 2018 Reportable and Participating Jurisdiction list for Reporting Period 2017 (Link).

More information on Automatic Exchange of Information (“AEOI”) in Guernsey can be found on the official website for the States of Guernsey (Link).

Malaysia updates FATCA information webpage

On 28 March 2018, the Inland Revenue Board of Malaysia updated the Foreign Account Tax Compliance Act (“FATCA”) information webpage (Link) to include the demands of the U.S. Internal Revenue Service Notice 2017-46 (Link) from 25 September 2017, which provides guidance for Financial Institutions (“FIs”) required to collect Tax Identification Numbers (“TINs”) and dates of birth under either the temporary regulations under Chapter 3 of the Internal Revenue Code or a Model 1 intergovernmental agreement (“IGA”), which advises the Malaysian FIs to insert nine capital letters (“AAAAAAAAA”) in the TIN field provided that the TIN is not available and that all the three below listed conditions are met.

The Competent Authority of the U.S. will not determine significant non-compliance with the obligations under the IGA solely on the basis of a failure of a reporting FFI to obtain and report each required US TIN, provided that the reporting FI:

  • obtains and reports the date of birth of each account holder and controlling person whose US TIN is not reported;
  • requests annually from each account holder any missing required US TIN; and,
  • before reporting information that relates to calendar year 2017 to the partner jurisdiction, searches electronically searchable data maintained by the reporting FFI for any missing required US TINs.

Regarding the Implementation of Foreign Account Tax Compliant Act (“FATCA”) in Malaysia, the U.S. Treasury, through their letter dated 25 April 2017, has agreed that Malaysia remains on the Treasury IGA list and continues to be treated as if it has an IGA in effect.

The date for submitting the 2014, 2015, 2016, 2017 and 2018 reportable information and NIL Returns under FATCA to IRBM has been tentatively deferred to 30 June 2019.