Key dates for Cayman funds to comply with FATCA

Reminder: All Cayman Islands funds are likely to be caught by the FATCA legislation – regardless whether the fund has any USA investors.

With the end of 2014 in sight, Cayman Islands funds must check for compliance with the obligations imposed under the FATCA / tax information sharing regime.

For the purposes of simplicity, FATCA can be said to place four primary obligations on Cayman Islands investment funds:

Register and obtain a Global Intermediary Identification Number (GIIN) for the Fund from the IRS website – DUE BY 31 DECEMBER 2014;

Undertake identification of the investors of the fund as to their tax residency, usually through the subscription documents – ALREADY IN FORCE FOR NEW INVESTORS, WHILST EXTENDED PERIODS APPLY TO EXISTING INVESTORS;

Register with the Cayman Islands Tax Information Authority – REGISTRATION WITH THE AUTHORITY IS DUE BY 31 MARCH 2015; and

Make annual filings with the Cayman Islands Tax Information Authority as to certain types of fund investors being “Reportable Accounts” – being Specified Persons or Passive NFFEs with one or more Controlling Persons who are Specified Persons and relevant information for such persons – FIRST REPORT IS DUE BY 31 MAY 2015.

Note FATCA is implemented in the Cayman Islands through an Intergovernmental Agreement between the Government of the United States of America and the Government of the Cayman Islands; the Cayman Islands Tax Information Authority Law and Regulations along with Guidance Notes issued by the Cayman Islands Tax Information Authority to give practical guidance on interpretative matters.  UK FATCA also applies similarly.

Specific advice is always recommended.