Cayman Islands Finalizes FATCA Guidance And Regulations; BVI Publishes Draft Guidance Notes

The Cayman Islands Tax Information Authority issued a revised version of Guidance Notes to assist businesses, their advisers and the Cayman Islands Tax Authority in their interpretation and compliance with obligations under the Intergovernmental Agreement between the United States and the Cayman Islands and the separate Intergovernmental Agreement between the United Kingdom and the Cayman Islands.

The over 180-page document covers both the U.S. and the UK agreements and provides extensive guidance with respect to classification of entities under FATCA and the various due diligence and reporting obligations that Cayman Islands Financial Institutions must undertake under FATCA and Cayman Islands regulations. The Tax Information Authority requests that parties provide comments and valid suggestions as they experience practical problems with the use of the Guidelines, with the goal of issuing a second iteration of the Guidance Notes in the fourth quarter of 2014. The revised Guidance follows the July 4 enactment by the Cayman Islands of amendments to its Tax Information Authority legislation to permit the automatic exchange of information between the Cayman Islands and other countries and the issuance of regulations implementing the U.S. and UK IGAs. The Cayman Islands Tax Information Authority also developed and published forms for self-certification by individuals and entities of their residence and FATCA status.

Meanwhile, the British Virgin Islands published the first draft of their own Guidance Notes with respect to their Intergovernmental Agreements with the United States and the United Kingdom and solicited comments from financial institutions and their advisors in the BVI and internationally.

See: Cayman Tax Information Authority UK IGA Regs; Cayman Tax Information Authority - U.S. IGA Regs; Cayman Tax Information Authority Legislation; BVI: U.S. and UK FATCA Draft Guidance Notes.See also: Cabinet Compilation of FATCA Agreements and Statements, Organized by Country; Cabinet FATCA Materials (both resources are available to Cabinet subscribers only).For more information, please contact Daniel Mulcahy and Mark Howe.