Cayman Islands governmental agencies provided updates about the rules for FATCA / common reporting standard (CRS) reporting.
The Cayman Islands Tax Information Authority confirmed that the annual statutory reporting deadline for the 2019 calendar year and onward will be moved to 31 July (previously 31 May). The tax authority also advised that penalties will automatically apply for those Cayman financial institutions (FIs) that complete reporting on the Cayman portal after the statutory deadline has passed. The statutory deadline for notification will remain at 31 May.
In addition to the change in reporting deadline for calendar years 2019 onward, a Cayman CRS-compliance declaration is likely to be mandatory for FIs. Reporting entities are expected to be required to declare the number of reportable accounts and non-reportable accounts and potentially provide a dollar value on the non-reportable accounts.
Finally, tax professionals believe that the Cayman Islands government is expected to implement a CRS compliance program next year, and that this program would involve reviewing certain filings by selected FIs to determine that the FI is compliant with the Cayman Islands CRS regulations—similar to review programs initiated by tax authorities in other CRS jurisdictions.
Read a November 2019 report [PDF 129 KB] prepared by the KPMG member firm in the Cayman Islands
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