US AND UK FATCA DEADLINES ARE UPON US. ANY ENTITY WHICH INTERACTS FINANCIALLY WITH A US OR UK PERSON MUST IDENTIFY IF THEY ARE A FOREIGN FINANCIAL INSTITUTION (FFI) AND REPORT ACCORDINGLY BY THAT DEADLINE. THESE ARE STATUTORY REQUIREMENTS THAT CARRY SEVERE PENALTIES FOR NON-COMPLIANCE. ELIAN HAS REGULATORY REPORTING SPECIALISTS ON HAND WHO CAN HELP YOU TO IDENTIFY AND FULFIL ALL THE RELEVANT REPORTING REQUIREMENTS.
US FATCA is a law which requires non-US financial institutions to report financial data, relating to the accounts they hold for US citizens or tax payers, to the US Internal Revenue Service (IRS). Foreign Financial Institutions (FFIs) are required to identify and report on all specified US persons.
UK FATCA, or CDOT FATCA, as it has become known, is regulation based on agreements between the UK and it’s Crown Dependencies and Overseas Territories (CDOT) which requires financial institutions in the CDOT to report financial data, relating to the accounts they hold for UK tax residents, to their domestic tax authorities, who will in turn provide that information to the UK’s HMRC. Its goal is to identify UK persons, who may be evading tax by investing and earning income through CDOT financial institutions (FIs) and ultimately to reduce tax evasion.
FIs are required to identify and report on all specified UK persons. The agreements between the UK and Gibraltar, Guernsey, Isle of Man and Jersey are reciprocal which means that UK financial institutions will identify and report on those account holders who are tax resident in those jurisdictions. Along with US FATCA and the Common Reporting Standard (CRS) these regimes are collectively known as Automatic Exchange Of Information (AEOI).
The first step is to establish whether a submission is required. Elian can help gather the information needed to make that decision, and if a submission is required, we can report accordingly.
If you are already a client of ours, Elian is best placed to help you understand your FATCA classification and obligations – do you need to report or not? If you do need to report, we will use the information we already hold for you and utilising our best of breed FATCA reporting system ensure that you can submit the correct information so it’s accepted first time.
If we act as a trustee for you then we have a fiduciary responsibility to ensure your FATCA reporting is done. This is a significant undertaking, we are required to report in detail on any reportable person who holds an equity or debt interest in the trust, and this will include the settlor, protector (if any), beneficiaries or class of beneficiaries as well as any discretionary beneficiaries who may have received a benefit in the reporting year.
We may not have a responsibility for your FATCA reporting and compliance if we provide you with non-trustee services but we can still help you with any aspect of FATCA or AEOI where you need support.