On 4 May 2018 the Cayman Islands (‘Cayman’) Ministry of Finance (‘Ministry’) circulated an Industry Advisory informing recipients that the Cayman Department for International Cooperation (‘DITC’)’s Country-by Country Reporting (‘CbCR’) Portal (‘Portal’) is now open. The Portal allows multinational enterprises groups (‘MNE’) to register with (Notify) the Cayman Tax Information Authority (‘TIA’) as and where required by the Tax Information Authority (International Tax Compliance) (Country By-Country Reporting) Regulations, 2017 (‘Regulations’).
New documents and guidance
The Industry Advisory has links to the latest versions of documents (listed below) which must be used instead of earlier versions posted on the DITC’s website. It highlights particular sections of the CbCR Guidance V.1.1 as being of particular help to users: Appendix I: CbCR Notification and Appendix II: The Reporting Procedure on the CbCR Portal.
- CbCR Guidance v1.1
- Constituent Entity File
- Constituent Entity File – Instructions
- CbC XML Schema User Guide
How does it work?
Every Entity that is resident in Cayman must determine whether or not it is a Constituent Entity (‘CE’) of a Multinational Enterprise (‘MNE’) Group (‘MNEG’) for the purposes of the CbCR Regulations (see CbCR Legislation and Resources). The DITC expects that the Ultimate Parent Entity (‘UPE’) of a MNEG will let its Cayman subsidiaries know their position. Where a subsidiary does not already know the identity of their UPE they should check their Register of Members and Know-Your- Client (‘KYC’) and Anti Money Laundering (‘AML’) records. All CEs which are Cayman resident need then to identify their MNEG’s Reporting Entity (‘RE’) which then gives the information to the DITC.
What is the deadline?
For those MNE Groups with a Fiscal Year which began on or after January 1, 2016 and ended on or before May 31, 2017 the TIA is treating the Notification deadline for Cayman resident REs in respect of all Cayman resident CEs as May 22, 2018 (a week later than previously advised).
How do I access the Portal?
The CbCR Portal can be accessed for Notification here for Part 1 and here for Part 2. The Industry Advisory suggests that Users check with the information technology team of their Reporting Entity / MNE Group to ensure that their system allows access to the Portal on TCP Port 8443. The Industry Advisory tells users to direct any queries regarding CbC reporting to CaymanCbCRPortal@gov.ky .
For more information see our earlier pieces: Country-by-Country Reporting Portal launch: grace periods and early advice; Application Of The Cayman Islands Country-By-Country Reporting Regulations To Insurance And Captive Insurance Companies and Cayman country-by-country reporting by 31 March 2018 for Multinational Enterprise Groups. If you would like further information or advice on CbCR regulations, Notification and Reporting please contact Rob Humphries or Richard Addlestone at Solomon Harris.
The information contained in this article is necessarily brief and general in nature and does not constitute legal advice. Appropriate legal or other professional advice should be sought for any specific matter.