Weekly FATCA Recap: July 23-29, 2016

Here is this week’s FATCA recap. Catch up on this week’s roundup compiled by our research team.

Guernsey Releases CRS Definition for Investment Entity (Bulletin 2016/6)

Guernsey has released the CRS definition for “Investment Entity” in Bulletin 2016/6. This definition was released in order to provide some clarity to Guernsey FIs for the purposes of CRS reporting.


Cyprus Releases Notice on Validations

Cyprus has released a notice to inform Financial Institutions and their delegates of the following FATCA reporting validations:

  • “SendingCompanyIN” field
    • Includes GIIN number which should be identical to the Financial Institution submitting the file
  • “TIN” field
    • Field should be zero-filled if no TIN
  • “DocTypeIndic” field
    • File submissions can only contain the “FATCA1” type until the July 31 deadline
  • “AccountNumber” field
    • This field must be accompanied by the relevant account number


Liechtenstein Publishes Guidance for Filing Single and Mass Messages Through Online Tax Portal

The Liechtenstein Tax Administration has released guidance for the submission of individual account reports and multiple account reports through its online portal. These notes contain information about reporting joint accounts, substantial owners, and controlling persons, as well as technical specifications for particular fields to be completed on the return.

Liechtenstein Financial Institutions report using the IRS FATCA XML.

The guidance can be found at this link under “Erfassung von Einzelmeldungen im Rahmen des FATCA-Reportings” and “Erfassung von Massenmeldungen im Rahmen des FATCA-Reportings (XML Upload).”


Mauritius Extends FATCA Reporting Date To August 31

This morning, the Mauritius Revenue Authority announced that it will extend the deadline for FATCA returns to August 31, 2016.  Previously, FATCA returns were due on July 31.


Italy Releases Updated FATCA Technical Specifications and Corrections Guidance

The Italian Ministry of Finance has released a revised version (v1.3) of its Compilation and Transmission of FATCA Data specifications, and it has also published guidelines regarding the FATCA error and correction processes.

The only significant change to the specifications concerns the use of foreign GIINs in the transmittal to the Italian Revenue Agency. Sponsoring Entities will now be permitted to use a non-Italian GIIN when sending its reports and those of its members.

The error and correction guidance covers six broad areas:

1) Error Communication: The IRS will notify the Italian Revenue Authority of any minor errors or serious non-compliance detected in transmittals. The Revenue Agency will inform the Italian Financial Institution (FI) of the nature of the error.

2) Categories of Errors: (a) Minor/Administrative Errors – incorrect or incomplete information; (b) Serious Non-Compliance – Errors defined in the FATCA Agreement such as failure to transmit, failure to submit timely corrections, or failure to apply the withholding tax where necessary by law.

3) Error Correction: FIs can submit corrections either in response to an error notification or upon its own discovery of an error. The proper method for submitting a corrected transmission may be found in the Compilation and Transmission of FATCA Data specifications. FIs have 90 days to correct Minor/Administrative Errors, and 16 months to correct serious non-compliance. Corrections can be submitted by Sponsoring Entities and Third Party Service Providers on behalf of the FI.

4) Receipt of Corrections: The Revenue Agency will confirm with the filer whether the submission was successful. This confirmation will be transmitted by the same channel through which the file was received, within five days of receipt. The IRS will then notify the Revenue Agency of the acceptance of the transmittal or its failure due to non-compliant transmission, misnamed files, schema errors, or inconsistencies in reported data.

5) Data Processing by the Revenue Agency: The data is processed in a way that is compliant with Italian laws regarding privacy and protection of personal data. The Revenue Agency will then transmit the data to the United States in accordance with the agreement provisions.

6) Protection of Personal Data: On July 7, 2016, the Italian government issued an order (No. 289) that would guarantee the protection of personal data.

This guidance should be construed as an addendum/clarification to the Compilation and Transmission of FATCA Data specifications.


IRS Updates the Turks and Caicos Islands’ FATCA Status to “In Force”

The IRS recently changed Turks and Caicos’ FATCA status from “Signed” to “In Force”. “In Force” means that the country has passed and approved legislation, and that the FATCA agreement with that country is active.

Click here to view the updated IRS FATCA List.


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