Domestic legislation to implement the US and UK Foreign Account
Tax Compliance Act ("FATCA") has come
into force on the Isle of Man today, 30 June 2014.
With compliance with certain provisions of FATCA taking effect
from 1 July 2014, the implementation of the legislation is a timely
reminder to financial institutions on the Isle of Man that FATCA is
here to stay and that automatic exchange of information is becoming
the new normal.
The specific pieces of legislation are the International Tax
Compliance (United States of America) Regulations 2014 and the
International Tax Compliance (United Kingdom) Regulations 2014
("the Regulations"). Made under the
Income Tax Act 1970, the Regulations address such issues as the
scope of the definition of 'Reportable Account', the
requirement to identify Reportable Accounts as well as certain
modifications for due diligence requirements and reporting. They
also set out the offences and general provisions relating to
compliance.
