Tax compliance with the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) continues to be an integral part of the ongoing regulatory obligations for Cayman Islands financial institutions (FIs) including private equity funds.
Annual Reporting Deadlines
A key requirement related to the Automatic Exchange of Information (AEOI) regime which includes CRS and FATCA, is the annual reporting requirement of reportable accounts. Entities that are classified as FIs under CRS and FATCA are reminded to file their 2021 annual reports and related information:
| 2021 CRS Reporting | 31 July 2022 |
| 2021 CRS Filing Declaration | 31 July 2022 |
| 2021 FATCA Reporting | 31 July 2022 |
| 2021 CRS Compliance Form | 15 September 2022 |
Filings are done via the Department for International Tax Cooperation (DITC) portal which is a department of the Tax Information Authority (TIA) in the Cayman Islands.
New Enforcement Guidelines
In March 2022, the Cayman Islands Ministry of Financial Services issued the CRS Enforcement Guidelines setting out the TIA’s processes for taking enforcement action under CRS and apply to all persons within scope of the TIA’s compliance monitoring. They also set out the administrative penalties which may be imposed for various breaches of FI’s reporting obligations under the CRS Regulations.
The most substantial penalties in relation to CRS for providing inaccurate or misleading information and failure to file prescribed information range from approximately USD 12,000 to USD 30,000.
All Cayman Islands FIs are advised to ensure that their CRS filings are in order given the TIA’s recent publication of the CRS Enforcement Guidelines.
>> Read our Overview of FATCA & CRS
Should you require any assistance with your obligations, please contact your usual Marbury relationship manager or info@marburys.com.