The DMS Solution For The New Cayman Islands CRS Compliance Form
The Cayman Islands Department of International Tax Compliance (“DITC”) released a new CRS Compliance Form on 15 April 2020, as part of the overall compliance with the Common Reporting Standard (“CRS”). This CRS Compliance Form is an integral part of the assessment by the Global Forum’s AEOI Peer Reviews that are currently conducted and will result in a rating of CRS implementation effectiveness, to be published in 2021. Data collection, analysis and assessment and compliance functions will be an important factor in the Global Forum’s AEOI Peer Reviews. The implementation of the CRS Compliance Form should ensure that these factors are addressed, in order that the Cayman Islands can demonstrate the effective implementation of CRS.
The CRS Compliance Form requires Cayman Islands Reporting Financial Institutions to collect additional information for the following sections and submit the form via the DITC Portal which will be available in June 2020:
- Financial Institution Data Profile.
- Financial Account Data, including information and classification of type of Non-Reportable Accounts.
- AML/KYC and Accounting (where applicable).
- CRS Due Diligence Process.
The deadline for the submission of this form is expected to be 15 September each year. In order to provide sufficient time to collect the additional information and complete the form, the deadline for the 2019 reporting period will be 31 December 2020. The DITC will apply automatic penalties where this deadline is not met.
FATCA REPORTING DEADLINE EXTENSION
Following the recent announcement by the IRS to extend the exchange of information deadline for Model 1 jurisdictions for the 2019 reporting, the DITC is extending the FATCA deadline to 16 November 2020.
Please note that the CRS deadline will not be changed and will remain 18 September 2020.
THE DMS SOLUTION
As a leading provider of International Tax Compliance (“ITC”) services, DMS has been at the forefront of discussions with managers across the U.S., Europe and Asia on how best to comply with the increased volume and responsibility of CRS and FATCA reporting. With FATCA and CRS reporting becoming increasingly demanding, including the announcement of the new CRS form, we have specifically seen a strong interest from our global client base in delegating the AEOI function to a third party that has the resources and expertise to ensure full compliance. As the filing deadlines approach, the DMS ITC team would welcome the opportunity to further discuss its ITC solutions, many of which can be customized, along with any new requirements you may have.
Please reach out to your usual DMS representative or contact us below: