Crown Dependencies Publish Draft Guidance Notes for U.S. and UK FATCA IGAs

Guernsey, the Isle of Man, and Jersey have jointly issued draft Guidance Notes with respect to both the U.S. and UK FATCA Intergovernmental Agreements ("IGAs") that were entered into by the Crown Dependencies and the U.S. and UK in late 2013.The purpose of the 145-page draft is to provide "practical assistance" to both businesses and the Crown Dependencies' staff in interpreting and complying with the Foreign Account Tax Compliance Act ("FATCA"). The draft Guidance Notes are intended as a "work in progress" and are subject to comments by all interested parties. The Crown Dependencies expect to issue a revised draft by the end of March 2014.

The Guidance Notes are intended to have the same applications for all three jurisdictions, except as specifically noted otherwise. Drafts of proposed legislation and regulations implementing the terms of the IGAs have not yet been released. According to the draft, the Guidance Notes will assist entities in answering:

• Am I a Financial Institution?
• Do I maintain Financial Accounts?
• Do I need to register with the IRS and, if so, by when and how?
• Do I need to report any information and, if so, what information, when and how?
• If I maintain a Financial Account for a Non-Financial Foreign Entity, what are my obligations?

The topics discussed in the draft Guidance Notes include: due diligence requirements, treatment of trusts, foundations and collective investment vehicles, reporting obligations, format of reporting, and penalties for non-compliance.

A copy of the draft Guidance Notes is linked below.

See: Crown Dependency FATCA Guidance Notes.See generally: Cabinet FATCA Materials Page (accessible to Cabinet subscribers only).Related news:Treasury Announces Signing of FATCA IGAs with Bermuda, Releases Text of IGAs with Five Other Countries (December 19, 2013).