Announcements FATCA Announcement on IGAs and Registration Deadlines

03 Apr 2014

The US Treasury and IRS have recently issued Announcement 2014-17 (the "Announcement"), which essentially clarifies two important aspects of the implementation of FATCA.  The Announcement can be viewed here. 

Firstly, jurisdictions listed on the IRS/Treasury websites as having an inter-governmental agreement ("IGA") in effect will also now include jurisdictions that have reached agreement with the US on the substantive terms of an IGA, before 1 July 2014, and have consented to be included on the Treasury and IRS list, even though the IGA has yet to be signed. 

The affected jurisdictions can be viewed here, which includes the British Virgin Islands ("BVI") and Brazil. 

This is of significance to those Financial Institutions domiciled in such listed jurisdictions as they will be permitted to register on the FATCA registration website, and certify their status to a withholding agent, as if they were domiciled in a jurisdiction with a signed IGA.  Reporting Financial Institutions in Model 1 IGA jurisdictions will also be able to take advantage of the effective extended deadline for GIIN registration until 31 Dec 2014 (see further below). 

It is also of relevance to those Financial Institutions that are part of wider international groups, who may be impacted by the Expanded Affiliated Group provisions under the US FATCA Regulations, or the Related Entity provisions under an IGA, as such entities will now be granted the status of deemed compliance, which would be advantageous to status of the wider group. 

Treasury expects to add jurisdictions as they consent to inclusion on the list and additional agreements in substance are reached.  Jurisdictions that reach agreements in substance on or after 1 July 2014 will not be included in the list of jurisdictions that are treated as having an IGA in effect until the IGA is signed. 

Secondly, the Treasury/IRS have split the former issuance date of the Global Intermediary Identification Number ("GIIN") list and extended the deadline by which registrations must be made, in order to be on the GIIN list as of 1 July 2014. 

The IRS will be publishing the first GIIN list on 2 June 2014, for which the deadline of registration is 5 May 2014.  The IRS will be publishing a second GIIN list on 1 July 2014, for which the deadline of registration is 3 June 2014.  In essence, this means the original date of registration by 25 April for inclusion on the 1 July GIIN list has been extended by an additional 39 days. 

The Announcement reminds withholding agents that they will have an additional 90 days to verify that the GIIN of a payee appears on the GIIN list, before they will be treated as having reason to know that the Chapter 4 status of the payee is unreliable or incorrect. 

Perhaps more noteworthy is the serious reinforcement made by the IRS in the Announcement in relation to the fact that a withholding agent does not need to obtain a GIIN from a Reporting FI in a Model 1 IGA jurisdiction (which now includes Ireland, the Cayman Islands and the BVI) for payments made before 1 January 2015.  See US FATCA Regulations § 1.1471-3(d)(4)(iv)(A).  This rule is highlighted three times in the Announcement. 

CONTACTS

bioImage

Martin Livingston

Consultant

+1 345 814 5471

bioImage

Jon Fowler

Partner

+1 345 814 5526

bioImage

Tim Frawley

Partner

+1 345 814 5354

bioImage

Alasdair Robertson

Partner

+1 345 814 5345

*
*
*
*


Please note that your email may be received and read by other Maples Group employees in addition to your intended recipient.

The use of this form does not create an attorney-client relationship and information submitted will not necessarily be treated as privileged or confidential, nor will it prevent us from accepting related instructions on behalf of others. Do not send us any information regarding any current or potential legal matters until your proposed engagement of us as legal counsel has been agreed and confirmed by us in writing.

*
*
*

Please note that your email may be received and read by other Maples Group employees in addition to your intended recipient.

Related

Announcements

COVID-19: What is Maples Group doing?

 The Maples Group has comprehensive, jurisdictionally specific, pandemic plans in place. This is a summary of the preventative measures that we are taking.

Read more

20 Mar 2020

Announcements

Maples Group Luxembourg Expands to New Location

The Maples Group is pleased to announce that due to the remarkable growth of its business in Luxembourg, it has relocated its offices.

Read more

12 Mar 2020

Announcements

Maples Group Announces Strategic Appointments at Six Offices

New Partners and Of Counsel are appointed across the Group's international offices.

Read more

05 Mar 2020

Announcements

Maples Group Ranked as Top Funds Legal Adviser for 7th Year Running

Maples and Calder, the Maples Group's law firm, is pleased to retain its position as the number one legal adviser to Irish-serviced funds for the seventh consecutive year by the Monterey Insight Ireland Fund Report 2019.

Read more

24 Feb 2020

Announcements

Maples Group Hong Kong Offices Relocate

 All of the Maples Group's Hong Kong teams will now be located at Central Plaza in Wanchai's north business district in Hong Kong. 

Read more

21 Feb 2020

Announcements

Maples Group Number 1 Listing Agent on Cayman Islands Stock Exchange

Maples and Calder, the Maples Group's law firm, is pleased to announce that it has retained its position as the number one listing agent on the Cayman Islands Stock Exchange (the "CSX") having advised on 47% of all CSX’s listings in 2019.

Read more

12 Feb 2020

Connect

Want to get in touch ?

Contact Us