Don't Get Snowed In By GATCA

Introduction

Offshore investment entities in the Cayman Islands and many other international financial centers should now start turning their attention to compliance with the Common Reporting Standard ("CRS") promulgated by GATCA – Global FATCA. They must document all account holders existing on December 31, 2015, with the exception of entities with an account balance or value not exceeding USD250,000. There is no de minimis exception for individual account holders.

By late 2017, tax authorities in over 50 jurisdictions – in addition to the US and UK – will be entitled to information on accounts and certain indirect interests held by any residents in those off shore investment entities. That number nearly doubles one year later. The CRS sets the scene for unprecedented international collaboration on compliance and enforcement of domestic income tax law. Off - shore investment entities should consider making new GATCA disclosures and other arrangements with that