CAYMAN ISLANDS CRS AND FATCA REPORTING
The Global Forum on Transparency and Exchange of Information for Tax Purposes has recognised that jurisdictions should have the ability to extend the deadline for the 2020 CRS exchanges from the original date of 30 September 2020 to a new date of 31 December 2020, as a temporary measure due to the global outbreak of the COVID-19 virus.
The Cayman Islands Department for International Tax Cooperation has therefore moved the CRS reporting deadline to 16 November 2020, as a result the amended CRS reporting deadline within the Cayman Islands which will align with the new recently amended FATCA reporting deadline.
BRITISH VIRGIN ISLANDS CRS AND FATCA REPORTING
Due to the COVID-19 pandemic, The International Tax Authority has decided to extend the deadlines for enrollment and reporting as follows:
• The FATCA enrollment deadline is extended to 31 July 2020, from the original date of 1 April 2020.
• The FATCA filing deadline is extended to 31 August 2020, from the original date of 31 May 2020.
• The CRS enrollment deadline is extended to 30 June 2020, from the original date of 30 April 2020.
• The CRS filing deadline is extended to 31 July 2020, from the original date of 31 May 2020.
The International Tax Authority now require that BVI Financial Institutions provide a copy of its CRS Policies and Procedures within ten working days noting that failure to do so would be an offense under the legislation.
U.S. FORM 1065 FILING AND APPOINTMENT OF PARTNERSHIP REPRESENTATIVE
The extended IRS Form 1065 filing deadline for the 2019 tax year will be 15 September 2020. Funds that have launched in 2019 or are otherwise considering the appointment of a U.S. Partnership Representative should ensure that they meet this deadline.
The new partnership audit rules that came into effect for tax years beginning 1 January 2018, require partnerships (or entities treated as partnerships for tax purposes) to appoint a Partnership Representative for each tax year. The Partnership Representative must be named on the partnership tax return Form 1065. The Partnership Representative must also have a substantial presence in the United States. A substantial presence requires the Partnership Representative to have:-
• U.S. taxpayer identification number.
• a U.S. telephone number and a U.S. street address.
• the ability to meet in person with the IRS at a reasonable time and place.
• if the Partnership Representative is an entity, the partnership must appoint an individual who meets the substantial presence requirements to act as the “designated individual” of the entity serving as Partnership Representative.