November 5, 2013 Cayman, U.K. Sign ‘FATCA’-type Agreement
Foreign Account Tax Compliance Act (FATCA)
Cayman, U.K. agreement to improve international tax compliance
On November 5, 2013 the Cayman Islands and the U.K. signed a ‘FATCA’-type intergovernmental agreement (IGA), preparing the way for Cayman to automatically share financial information with the U.K. on U.K. taxpayers who hold Cayman Islands accounts.
Steps to establish the legislative and operational framework to implement the agreement are underway, and the Cayman Islands Government also intends to issue guidance to assist with the implementation.
In September, the G20 supported the Organization for Economic Co-operation and Development (OECD) in presenting a single global standard for automatic information exchange by February 2014, and in finalizing the technical implementation aspects by mid-2014.
Under the IGA, financial institutions in Cayman will report information on financial accounts that are substantially owned by persons with U.K. tax-reporting obligations, to the Cayman Islands Government. Cayman’s Government will then forward the information to the U.K. Additionally, the IGA contains details of the alternative reporting regime for U.K. resident non-domiciled individuals. Further details of the U.K.-Cayman agreement to improve international Tax compliance is approved for external use.
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