Singapore releases general FATCA FAQs

On 11 August 2015, the Inland Revenue Authority of Singapore issued an updated version of the general FATCA FAQs (Link). One question was added, namely whether all accounts held by sole-proprietors should be treated as Individual Accounts. The Authority’s answer holds that for FATCA, only accounts held by sole-proprietorships that are owned by individuals (and not companies) should be treated as individual accounts.

IRS releases instructions for the preparation of XML files for adding multiple sponsored entities using a File Upload

On 10 August 2015, the IRS published a document that includes instructions on how to create an XML file “Adding Multiple Sponsored Entities using a File Upload” (Link). Further instructions on how to upload this file will be included in an updated FATCA Online Registration user guide to be issued in late 2015.

Indian government enacts FATCA rules – Reporting due 31 August 2015

On 7 August 2015, the Indian Government enacted rules relating to FATCA reporting in India and set the deadline for the 2014 reporting year as 31 August 2015.  The Indian Government signed an Intergovernmental Agreement (IGA) with the United States on 9 July 2015,  to implement the Foreign Account Tax Compliance Act (FATCA) in India (Link).

Link to PwC Tax News Alert

Updated IDES Frequently Asked Questions and FATCA XML Schema Best Practices

On 10 August 2015, the IRS update certain Frequently Asked Questions (FAQs) on its IDES Technical FAQs webpage (Link).  In particular, questions A16 and E18 have been added while questions C16 and C17 have been updated to reflect updates to the FATCA XML Schema Best Practices document (Link).  This document contains recommendations regarding the schema, including character restrictions as well as the use of optional and non-optional entity references within the XML content.

IRS updates IDES Testing Schedule

On 10 August 2015, the IRS updated the IDES Testing Schedule webpage (Link) to reflect the new testing period as follows:

  • Test enrollment by: August 24, 2015 5:00 pm EST (GMT -5)
  • Opens: August 28, 2015 12:00 pm EST (GMT -5)
  • Closes: September 4, 2015 12:00 pm EST (GMT -5)

OECD Releases Guidance Package for AEOI Implementation

On 7 August 2015, the OECD issued three new documents providing guidance on the implementation of the global standard on automatic exchange of information. While these documents are helpful, it remains to be seen what suggestions are actually implemented into local regulations and guidance by the countries which have committed to adopting CRS.

These documents include the following:

  • A practical handbook on implementation for automatic exchange of financial information in tax matters (Link):

This 120-page handbook contains information, including FAQs, to primarily support governments in understanding the applicability of CRS and their respective responsibilities to implement this regime. The handbook is intended to be a practical plain language guide to the necessary steps required to properly implement the Common Reporting Standard. The Handbook provides an overview of the legislative, technical and operational issues as well as a more detailed discussion of the key definitions and procedures contained within the Standard. This represents the first edition of what the OECD considers a “living document” which will be updated on a regular basis.

  • A model protocol to tax information exchange agreements under a Tax Information Exchange Agreement (Link):

This document is intended to provide a mechanism for jurisdictions seeking to amend current or future Tax Information Exchange Agreements to include a basis for the implementation of automatic and the spontaneous exchange of information.

  • An updated report on offshore voluntary disclosure programs (Link).

This 130-page document intends to provide a roadmap to effective tax compliance programs, including the different types of Offshore Voluntary Disclosure Programmes and principle to be applied when designing a successful program. The document also contains and annex containing survey results on voluntary disclosure programs from March 2015 from 47 countries.

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