IoM Publishes Common Reporting Standard Guidance
by Jason Gorringe, Lowtax.net, London
09 March, 2016
The Isle of Man's Income Tax Division has issued Guidance Note 53 on "The Common Reporting Standard (CRS) Isle of Man Regulations – Application of the CRS for Isle of Man Financial Institutions."
The guidance note deals with the implementation in the Isle of Man of the Common Reporting Standard, a single, global standard for the automatic exchange of information in tax matters.
The main purpose of the guidance note is to:
- Clarify how the Isle of Man will respond to the CRS;
- Highlight relevant differences between the US Foreign Account Tax Compliance Act (FATCA) and the CRS from an Isle of Man perspective;
- Provide practical guidance on what to report and how to report it to the Isle of Man Assessor; and
- Detail the penalties and anti-avoidance measures that the Assessor may use in the case of non-compliance by an Isle of Man financial institution.
Guidance on practical aspects and the operation of the CRS can also be found in the OECD's CRS Implementation Handbook.
Further guidance is to be released in due course, on:
- Whether the use of the US FATCA intergovernmental agreement (IGA) and UK IGA definitions of Investment Entity can be applied in respect of the CRS;
- Reporting in respect of Corporate Trustees;
- Cash – is it a Financial Asset; and
- Reporting in respect of charities that are beneficiaries.
Later this month, the Income Tax Division is to launch the Information Providers' Online Service on its website, to receive information filed by financial institutions under the various automatic information exchange agreements.
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