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
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.