The Cayman Islands (‘Cayman’) statutory reporting deadline for the Common Reporting Standard (‘CRS’) and US Foreign Account Tax Compliance Act (‘FATCA’) is today, 31 May 2018.
The Cayman Department for International Tax Cooperation (‘DITC’) has reminded the financial services industry in an ‘Industry Advisory’ that the Cayman Automatic Exchange of Information (‘AEOI’) Portal (‘Portal’) will be taken offline for various periods during the summer and brought back online to allow Cayman Financial Institutions (‘CFIs’) to comply with their reporting obligations. There is a grace period before which CFIs will attract enforcement measures or penatlties or attract the DITC’s attention for compliance reviews (see below).
CRS reporting reminder
The DITC Industry Advisory also reminds those CFIs which have CRS reporting obligations that even if they have no Reportable Accounts the reporting obligations will not be regarded as complete until the CFI has successfully submitted a CRS Filing Declaration for the relevant reporting period.
The Industry Advisory also advises that the Portal will be taken offline at 12.00 noon on Friday, 1 June 2018.
The DITC intend reopening the Portal on 15 June 2018 and that it will then will remain open until 31 August 2018 to allow CFIs additional time to fulfil their reporting obligations.
Portal Closure for data transmission
After 31 August 2018 the AEOI Portal it will once again go offline for the preparation of data transmission to the Competent Authorities of relevant treaty partners.
Deadline before compliance measures for late filing
The Industry Advisory also advises that compliance measures for late filing will not be taken provided that CFIs complete their 2017 CRS and US FATCA reporting obligations on or before 31 July 2018. CFIs which file after 31 May 2018 but before that date will not therefore attract adverse consequences, enforcement measures or penalties. The DITC will note which CFIs have submitted their reporting after that date and they may be subject to compliance reviews by the DITC.
Further information is available on the TIA's News and Updates page and by following the links here. The DITC advises that any queries regarding the AEOI Portal must be sent via email and sent only to CaymanAEOIPortal@gov.ky. During the time the Portal is offline the AEOI Portal Team will continue to work through the queries and requests which it receives. The Portal Team may contact users concerning their Internal Revenue Service (‘IRS’) notifications and advise on any remedial action which may need to be taken by the CFI.
We at Solomon Harris have been monitoring and covering the introduction of international AEOI regulations, including US FATCA and the CRS and keeping a close eye on updates to the Cayman AEOI Portal. If you would like advice or assistance on any US FATCA, CRS or other regulatory matters contact us on email@example.com to see how we can help.
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.