FATCA publications

OECD Publishes Common Reporting Standard [18 February 2014]
The Organisation of Economic Cooperation and Development on February 13, 2014 released the Common Reporting Standard (CRS), which seeks to establish a new global standard for automatic exchange of financial account information between Governments. As with the Foreign Account Tax Compliance Act (FATCA) the CRS model imposes obligations on financial institutions (FIs) to identify reportable accounts and obtain the account holder identifying information that is required to be reported for such accounts with their local tax administration. It also provides the scope of the information to be collected and exchanged with the account holder's residency country. A total of 42 countries have already committed to adopting the CRS and the expectation is that at least some of these agreements will be entered into later this year. The documents released are an introduction and overview on automatic exchange of information and text of the model Competent Authority Agreement and CRS due diligence processes.While the documents released do not include any specific timelines, we understand that FIs in countries which adopt the standard will be required to undertake the necessary due diligence obligations in 2016 with reporting starting in 2017.

IRS releases FATCA technical corrections to regulations [19 September 2013]
The Internal Revenue Service (IRS) on September 10 issued correcting amendments to the final Foreign Account Tax Compliance Act (FATCA) regulations released in January. The amendments clarify and correct various provisions and according to the release, their purpose is three-fold: 1. Correct several citations and cross references; 2. Modify the regulatory language to clarify the relevant provisions to meet their intended purposes; and 3. Ensure that the rules in the final FATCA regulations are coordinated with rules in other relevant regulations, such as those under Chapters 3 and 61 of the Internal Revenue Code.

Draft US Form W-8IMY Released [26 August 2013]
The IRS released the new draft form W-8IMY: Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting. The W-8IMY is the last of the W-8 forms to be revised for FATCA.

Instructions for FFI Registration Released [23 August 2013]
The IRS has released instructions for the FFI Registration Portal and for the Form 8957 (FATCA Registration).Links for FATCA Registration:

Draft US Form 8966, W-9 Instructions Released [22 August 2013]
 

IRS opens FATCA online registration system to provide a beneficial user testing period 
[20 August 2013]
The Internal Revenue Service (IRS) announced the opening of the Foreign Account Tax Compliance Act (FATCA) registration system on August 19, 2013. The registration system will enable financial institutions (FIs) to register and obtain a global intermediary identification number (GIIN). FIs are requested to submit the required information online as final on or after January 1, 2014 – no GIINs will be issued before this date. Between now and December 31, 2013, FIs are permitted to establish their online account, input preliminary information, refine such information, and become familiar with the system thereby resulting in a user testing period

HM Treasury and HMRC lay UK regulations before the UK House of Commons [12 August 2013]
Our Newsbrief identifies key changes and certain additions from the proposed UK Regulations which were released in May 2013.

US government announces six-month extension to FATCA effective dates [12 July 2013]
The Internal Revenue Service (IRS) and the US Department of the Treasury issued Notice 2013-43 (Notice) today announcing revised timelines for implementing various provisions under the Foreign Account Tax Compliance Act (FATCA). The Notice also provides additional guidance concerning financial institutions in jurisdictions that have signed an intergovernmental agreement (IGA) but have not yet enacted legislation bringing it into force.

Draft FATCA-related IRS forms: A snapshot of those released so far [17 June 2013]
Preparation for compliance with FATCA is well underway and a key element will be the various forms used to communicate between withholding agents, their payees, and the Internal Revenue Service (IRS). As important FATCA compliance dates draw near, the IRS has recently released drafts of certain FATCA-related forms.

Global IRW Newsbrief: European Commission seeks to expand automatic information exchange between EU Member States [14 June 2013]
European Union (EU) Tax Commissioner Algirdas Šemeta on June 13, 2013 presented a Proposal for a Council Directive intended to combat tax evasion by expanding the scope of the automatic exchange of information (“AEOI”) between EU Member States on “dividends, capital gains, all other financial income and account balances” and is planned to take effect from January 2015 related to the taxable period from 1 January 2014. Such an enhanced exchange of information would result in the EU having the most comprehensive tax information exchange system in the world and is intended to set the global standard for other nations to adopt in the future.

Taking control of FATCA - Building effective internal controls and processes to promote compliance and certification [13 June 2013]
Our whitepaper expands on an earlier report released in the Winter 2013 and explores strategies for developing and maintaining a controls framework.

The Insurance Industry and FATCA – Moving from Assessment to Implementation: Top 13 in ’13
[21 March 2013]
We have attempted to provide a broadly based perspective of 13 current and evolving compliance challenges stemming from the final regulations. The publication highlights notable hot spots where existing policies, procedures, and processes can be leveraged to focus on enterprise risk, and suggests an approach to assessing an organization’s current preparedness and develop a long-term sustainable implementation roadmap for compliance.

FATCA Regulatory Timelines [12 February 2013]
FATCA Regulatory timelines, setting out key milestone dates based on the final FATCA regulations for the following:

  • FATCA timeline for US withholding agents including USFIs
  • FATCA timeline for PFFI in non-IGA countries
  • FATCA timeline for FFIs under Model I IGAs
  • FATCA timeline for FFIs under Model II IGAs

How do the final FATCA regulations affect asset managers? [6 February 2013]
The long-awaited final Foreign Account Tax Compliance Act (FATCA) regulations have arrived and, while much analysis still needs to be done, the US Department of the Treasury and the Internal Revenue Service (IRS) provided welcome relief on a number of key issues for the asset management industry. However, major implementation challenges still remain for the industry at large and significant work must be undertaken through the course of 2013 in order to be compliant by January 1, 2014.
Our Global IRW Newsbrief addresses issues of particular interest to the asset management industry and we hope you will find the content useful.

How do the final FATCA regulations impact insurers? [25 January 2013]
The long-awaited final Foreign Account Tax Compliance Act (FATCA) regulations have arrived and, while much analysis still needs he final regulations relating to the provisions of the Foreign Account Tax Compliance Act (FATCA) were issued on January 17, 2013. The final regulations contain over 500 pages of guidance that will undoubtedly consume a significant amount of time as stakeholders including banks, investment funds, insurance companies, and their clients, study their content. As it relates to the insurance industry, these final regulations contain a number of significant differences from the proposed regulations. Our Global IRW Newsbrief addresses issues of particular interest to Insurers and we hope you will find the content useful.

Final FATCA regulations issued: let the compliance begin! [18 January 2013]
Stakeholders patiently waiting for guidance regarding the Foreign Account Tax Compliance Act (FATCA) need not wait any longer -- final regulations were issued along with a press release on January 17, 2013.  FATCA was enacted as part of the Hiring Incentives to Restore Employment Act (HIRE Act) on March 18, 2010 to serve as an administrative tool to prevent and detect US tax evasion and improve taxpayer compliance. As a result, chapter 4 (Sections 1471 - 1474) was added to Subtitle A of the Internal Revenue Code.  Chapter 4 expands the US information reporting regime by imposing documentation, withholding, and reporting requirements on payments to Foreign Financial Institutions (FFIs) and Non-Financial Foreign Entities (NFFEs).  The final regulations contain over 500 pages of guidance that will undoubtedly consume a significant amount of time as stakeholders including banks, investment funds, insurance companies, and their clients, study their content. The length of these regulations is not surprising given that FATCA's statutory provisions were intentionally broad and gave considerable discretion to the US Department of the Treasury and the Internal Revenue Service to narrow its scope when promulgating regulations.

FATCA Final Regulations [17 January 2013]
Final regulations affect persons making certain U.S.-related payments to FFIs and other foreign entities and payments by FFIs to other persons. This document contains final amendments to the Income Tax Regulations (CFR parts 1 and 301) under sections 1471 through 1474 of the Code (commonly known as the Foreign Account Tax Compliance Act, or FATCA)..

HMRC Issues Draft Guidance Notes - Implementation of International Tax Compliance (USA) Regulations 2013 [9 January 2013]
On 18 December 2012, HM Treasury and HMRC released the draft International Tax Compliance (United States of America) Regulations 2013 (“UK Draft Regulations”) to implement the Agreement to Improve International Tax Compliance and to Implement FATCA (“UK-US IGA”). Accompanying the UK Draft Regulations was the release of the Draft Guidance Notes (“UK Draft Guidance”) and a Summary of responses to the consultation which sought views on how the Government intends to legislate to deliver the commitments made in the UK-US IGA.
The UK Draft Guidance provides HMRC’s interpretation of the procedures that a financial institution within the UK will need to follow to identify and report ‘Specified US Persons’ beginning 1 January 2014. UK guidance notes are intended to assist financial institutions in complying by providing explanations and examples for financial institutions to follow but do not form part of the UK legislation.
HMRC has requested comments on the Finance Bill 2013, which will officially enact the UK legislation implementing the UK-US IGA when it is finalized in summer 2013 and becomes Finance Act 2013, the UK Draft Regulations and Guidance, by the 13 February 2013.
Our newsbrief provides an overview of the key clarifications and gaps and includes an appendix with detailed analysis of, the UK Draft Guidance. A summary of responses to the consultation will be provided in a future Newsbrief.

United States and Ireland Sign a Bilateral FATCA Intergovernmental Agreement
[29 December 2012]
On 21 December 2012, the Chargé d’affaires at the US Embassy in Ireland and the Minister for Finance of Ireland signed an intergovernmental agreement (the US-Ireland IGA) under the provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). We are pleased to attach our Newsbrief on the US-Ireland IGA.

HM Treasury and HMRC release details outlining the implementation of FATCA in the UK
[19 December 2012]
The Internal Revenue Service (IRS) released a preliminary draft Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding.

Treasury releases second model agreement for implementing FATCA [21 November 2012]
Our newsbrief highlights some of the significant differences between Model 1 and Model 2 of the agreement

FATCA and KYC. Similar yet different [12 November 2012]
FATCA extends customer due digilience and reporting requirements well beyond what is typically performed for KYC purposes. This document highlights four key challenges that AML/KYC professionals should understand as their financial institutions begin to implement FATCA alongside existing accounting opening and AML/KYC capabilities.

This newsbrief summarizes the key highlights from the Announcement. Ultimately the US Treasury and IRS intend to incorporate this guidance into the final regulations [30 October 2012]

The FATCA Challenge Facing Caribbean Banks [18 May 2012]
We outline in our report some of the implications of FATCA for Caribbean banks