Tax Information Authority CRS Regulations (2021 Revision)

Document Overview

The primary regulations governing the implementation of the Common Reporting Standard in the Cayman Islands. This 2021 revision consolidates amendments up through late 2020.

Key Takeaways

• Establishes statutory obligations for Cayman Reporting Financial Institutions (RFIs) to identify and report foreign tax residents.
• Defines the due diligence procedures for Pre-existing and New Accounts.
• Mandates the appointment of a Principal Point of Contact (PPoC).
• Enforces penalties for false self-certifications and non-compliance.

Key Concepts Covered

• Common Reporting Standard (CRS)
• Principal Point of Contact (PPoC)
• Self-Certification
• Reporting Financial Institution
• Reportable Jurisdiction
• Penalties and Enforcement
• Non-Financial Entity (NFE)
• Reportable Account vs. Reportable Person
• Non-Reporting Financial Institution
• Controlling Persons
• Undocumented Accounts
• Preexisting vs. New Accounts
• CRS vs. US FATCA: Key Differences

Deadlines & Timelines Mentioned

• Review of Pre -existing High Value Individual Accounts must be co mpleted by 31 December 2016.
• Review of Pre -existing Lower Value Individual Accounts must be completed by 31 December 2017.
• Review of Pre -existing Entity Accounts with an aggregate account balance or value that exceeds USD 250,000 as of 31 December 2015 must be completed by 31 December 2017.
• The term “New Account” means a Financial Account maintained by a Reporting Financial Institution opened on or after 1 January 2016.
• The term “Lower Value Account” means a Pre-existing Individual Account with an aggregate balance or value as of 31 December 2015 that does not exceed USD 1,000,000.
• The term “High Value Account” means a Pre-existing Individual Account with an aggregate balance or value that exceeds USD 1,000,000 as of 31 December 2015 or 31 December of any subsequent year.