Yearly Archives: 2016

In the late 1980s, two Texas attorneys, John Porter and Stacy Eastland, introduced a new discounting technique relating to the formation of family limited partnerships which resulted in discounts of 30% and more to the value of the artificially created family limited partnership (FLP).  This technique was an anathema to the Internal Revenue Service; a review of many estate tax court cases litigated in the last 20 years involve the discounts taken on  FLPs. The bulk of these discounts were related to intrafamily transfers, many times saving millions of dollars in estate tax.

Yesterday we posted Cayman Islands FATCA Reporting of American Depositors is TODAY - Don't Wait Until it is TOO Late to Come Clean! now The Cayman Islands has postponed the deadline for banks to report accounts of US and UK persons for the 2015 tax year to the Cayman Tax Information Authority from August 10, 2016 to September 2, 2016 for both US Foreign Account Tax Compliance Actreporting and UK Crown Dependencies/Overseas Territories reporting.

The deadline, which refers to the 2015 tax year, was originally fixed for May 31, 2016. Banks and other financial institutions were told that it applied to their reporting duties under both the US Foreign Account Tax Compliance Act and the UK Crown Dependencies/Overseas Territories disclosure agreement. It is referred to as a 'soft' deadline because it is set by administrative fiat rather than legislation.

However, financial institutions have had problems using the website set up by the government as a reporting portal. The deadline was first put back to July 8, 2016, then to August 10 , 2016 and now it's been further postponed until September 2, 2016, both for actual reporting of bank account information and for notifications that the institution is a reporting body.

Source

• Cayman Islands Department for International Tax Cooperation

Today Wednesday August 10, 2016 is the deadline for Cayman Islands financial institutions to complete their notification and reporting of American Clients' accounts to the Cayman Tax Information Authority, under the US Foreign Account Tax Compliance Act (FATCA).

Cayman Reporting Financial Institutions are reminded that their obligations under FATCA will include:

• Registration with the United States IRS to obtain a Global Intermediary Identification Number (GIIN) and
• Due diligence on investors and identification of any reportable accounts

Reporting Financial Institutions ("Reporting FIs") must report through the Cayman Islands AEOI Portal.

Users should expect heavy traffic on the Portal.   

Today's FATCA deadline for Reporting FIs through the Cayman Islands AEOI Port, is also the UK FATCA (CDOT) deadline for Reporting FIs. Also in relation to CRS, Reporting FIs are reminded that 31 December 2016 is the deadline for the completion of due diligence on Preexisting High Value Individual Accounts.

 

Sources:

Collas Crill