Repeal of the EU Savings Directive

On 24 March 2014, an amendment to the EU Savings Directive was accepted, which significantly widens the scope of the EU Savings Directive. The new provisions needed to be implemented in local law by 1 January 2016, having effect on Financial Institutions starting from 1 January 2017. On 15 April 2015, the EU issued a proposal to repeal the EU Savings Directive in light of the introduction of CRS. The repeal proposal contains transitional measures for Austria, to provide Austria with the option to join CRS one year later. The repeal proposal was accepted during the EcoFin meeting of 10 November 2015. The EU Savings Directive is repealed effectively as per the day that the CRS/ EU DAC obligations enter into effect, i.e. as per 1 January 2016 in most cases.

IRS releases updated IDES technical and ICMM FAQs

On 3 November 2015, the IRS published a new question on the list of IDES Technical FAQs concerning notifications received by users that their file was not downloaded (Link). The IRS explained that files containing invalid dates in the metadata could not be automatically downloaded and gave further instructions on how to properly populate dates into the files.

In addition, the second FATCA ICMM FAQ on Failed Threat Scan Notification (NTD) has been updated in order to include information on how to detect threats.

IRS Global IT Forum

The Global IT Forum provides updates on International Data Exchange Service (IDES) developments and presents an opportunity to discuss technical questions with host country tax authorities (HCTAs), financial institutions, and related industry organizations. Global IT forum sessions are held monthly. Details about upcoming Global IT Forum sessions are emailed to all registered participants (Link).

U.S. signs Competent Authority Arrangements with Ireland and Isle of Man

In early November 2015, the U.S. signed Competent Authority Arrangements (“CAAs”) with Ireland (Link) and Isle of Man (Link) in accordance with the IGAs previously signed with these jurisdictions. 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.

Jersey releases draft CRS legislation

On 13 October 2015, the Jersey draft CRS law [Draft Taxation (Implementation) (International Tax Compliance) (Common Reporting Standard)(Jersey) Regulations 201] was lodged au Greffe (Link). The Proposal for the ratification of the Multilateral Competent Authority Agreement implementing CRS was also lodged au Greffe on the same day (Link). If ratified, the draft law will be effective on 1 January 2016.

EU signs bilateral treaty for the automatic exchange of financial information with Liechtenstein

On 28 October 2015, the European Union signed an agreement on the automatic exchange of financial account information with Liechtenstein (Link). This Treaty is aimed at improving international tax compliance and combatting tax evasion and tax fraud. The first automatic exchange of information will take place in 2017 for information collected in 2016.

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