FATCA Update January 2015

Transcription

1 FATCA Update January 2015 Happy New Year? Together with Professor Byrnes I have, for many months, been providing a commentary on the list that the USA provides of approved FFIs. Incidentally, the third edition of Professor Byrnes book, LexisNexis Guide to FATCA Compliance will be published later this month. I have contributed to three chapters so I hope you will pardon the plug. Today, January 1, 2015, the IRS has published a list of approved FFIs i.e. a list of those who have registered on the IRS FATCA portal by December 23, FATCA IGA Scenarios GIINs Jurisdictions Model 1A IGA 90, Model 1B IGA 32,546 3 Model 2 IGA 17, No IGA 5, US US Territories 64 6 Total 147, The month s list is particularly important because those FFIs in IGA Model 1 Countries that are not on this list are now very much on the back-foot. I say this because as of January 1, 2015, a Model 1 FFI that has no GIIN can no longer be treated as a Participating FFI (of any description). This is the case regardless of the fact that the FFI is located in a IGA jurisdiction. (Model 1 FFIs do not sign a FFI Agreement.) Those Model 1 FFIs who registered for a GIIN by December 31, 2014, but have not yet been provided with a GIIN, can declare that they have applied for a GIIN and hence be afforded a further 90 days grace provided that the GIIN appears on the IRS list of approved FFIs that will be published on the first day of April After that the sword of Damocles falls. This time, next year, the Automatic Exchange of Information (AEoI) will be live. Reporting under AEoI begins in September 2017, on all of At this point in time it would be remiss not to mention the AEoI. The AEoI and its component, the Common Reporting Standard (CRS), are often refereed to (informally) as GATCA (Global FATCA). The Standard and Guidance are now published. 52 jurisdictions have signed up to the AEoI and a further 46 have committed to sign. Interestingly, the USA is the only member of the OECD neither to have signed, nor committed to sign up to the AEoI. According to the The Tax Justice Network, the USA is the 6 th largest Financial Secrecy jurisdiction. The same source reports that, The U.S. protects itself from foreign tax havens, while remaining a tax haven for foreigners. The USA is the only member of the G20 neither to have signed nor committed to sign up to the AEoI. The US, according to publication 5118, recognizes 250 jurisdictions for FATCA purposes. (You can see the FATGA IGA Status and the AEoI Status of each in the table below.) Of these 250 jurisdictions, 131 have not entered into a FATCA IGA with the US Treasury.

2 Whilst only 51 IGAs have been signed, at the time of writing, 112 jurisdictions are treated as having an IGA in place for FATCA purposes. (A full commentary on the IGAs is available here.) This includes 50 IGAs agreed to in substance and a further 11 jurisdictions are recognized (for the time being) as a result of announcement No commentary on the acceptance of IGAs would be complete without recognizing that Africa is heavily represented amongst the population of Non IGA jurisdictions, as are parts are Asia. (This is also true of the CRS.) Very few of these countries are secrecy jurisdictions of any description. Moreover, many of the poorest countries in the world are of a Non IGA persuasion. If there truly are victims of FATCA, they are likely to be found in these jurisdictions. There are now 147,043 FFIs on the approved list. The UK and her Crown Dependencies and Overseas Territories (UKCDOT) represent 45% of the total percentage of approved FFIs. 80% of approved FFIs are in either OECD members jurisdictions or members of UKCDOT. Given the relatively high representation of OECD countries amongst the population of approved FFIs it bares reiterating that the USA has not signed up to the CRS, nor has the USA evidenced a pathway to the reciprocity upon which the FATCA IGAs are predicated. FATCA has been in the press a great deal in We can expect to see FATCA reported, even more widely, in 2015, as FATCA begins to bite. I say this because there will be withholding on, and in, 131 jurisdictions that have no IGA. It may also be harder for FFIs in Non IGA countries, to access capital if they have no GIIN. Again, the 131 Non IGA jurisdictions include many of the world s poorest countries. The population of approved FFIs from Non IGA countries is less than 5%. A plausible reason sometimes cited for the lack of IGAs signed with poor countries is their lack of Data Privacy. Ironically, many of these poorer countries have had their financial resources stripped from them by corrupt governments who have expatriated those financial resources to financial secrecy jurisdictions (rich countries). In the world of financial secrecy, the victim is sometimes cast as the villain. No doubt we will hear, most vociferously, from those FFIs in IGA countries who are about to experience withholding because they have not yet applied for a GIIN will be a turbulent year for both FATCA and the CRS. FATCA withholding kicks in in earnest Model 1 FFIs without a GIIN will be withheld upon many of whom are unaware of this FFIs in 131 jurisdictions who have not completed the FATCA CDD on Prima Facie FFIs are already outside of compliance. The CRS goes live in January 1, 2016 Brace yourselves! Oh, by the way: Happy New Year! You can find out more at: Website: You Tube Channel: Podcast: Haydon Perryman,

3 HAYDON PERRYMAN FATCA/IGA Status Automatic Exchange of Information Jan 1, FFI List Jurisdiction Name (IRS publication 5118) ISO IGA Model Signed/Substa nce IGA Status Date Signed/Com mitted Date 1st Info Exch GIIN Population Lead FFIs Afghanistan 004 No IGA 12 1 Aland Islands 248 No IGA 0 0 Albania 008 No IGA Signed 29- Oct Algeria 012 Model 1A IGA Substance 30- Jun American Samoa 016 No IGA 0 0 Andorra 020 No IGA Committed 29- Oct Angola 024 Model 1A IGA Ann Nov Anguilla 660 Model 1A IGA Substance 30- Jun- 14 Signed 29- Oct Antarctica 010 No IGA 0 0 Antigua and Barbuda 028 Model 1A IGA Substance 03- Jun- 14 Committed 29- Oct Argentina 032 No IGA Signed 29- Oct Armenia 051 Model 2 IGA Substance 08- May Aruba 533 No IGA Signed 29- Oct Australia 036 Model 1A IGA Signed 28- Apr- 14 Committed 29- Oct , Austria 040 Model 2 IGA Signed 29- Apr- 14 Signed 29- Oct , Azerbaijan 031 Model 1A IGA Substance 16- May Bahamas 044 Model 1B IGA Signed 03- Nov- 14 Committed 29- Oct Bahrain 048 Model 1A IGA Substance 30- Jun- 14 Committed 29- Oct- 14 TBC Bangladesh 050 No IGA Barbados 052 Model 1A IGA Signed 17- Nov- 14 Committed 29- Oct Belarus 112 Model 1A IGA Substance 06- Jun Belgium 056 Model 1A IGA Signed 23- Apr- 14 Signed 29- Oct Belize 084 No IGA Committed 29- Oct Benin 204 No IGA 12 0 Bermuda 060 Model 2 IGA Signed 19- Dec- 13 Signed 29- Oct , Bhutan 064 No IGA 2 0 Bolivia, Plurinational State Of 068 No IGA 36 4 Bonaire, Sint Eustatius And Saba 535 No IGA 12 0 Bosnia and Herzegovina 070 No IGA 42 2 Botswana 072 No IGA 29 2 Bouvet Island 074 No IGA 3 2 Brazil 076 Model 1A IGA Signed 23- Sep- 14 Committed 29- Oct , British Indian Ocean Territory 086 No IGA 20 0 Brunei Darussalam 096 No IGA Committed 29- Oct Bulgaria 100 Model 1A IGA Signed 05- Dec- 14 Committed 29- Oct Burkina Faso 854 No IGA 9 1 Burundi 108 No IGA 8 0 Haydon Perryman,

4 Cambodia 116 Model 1A IGA Ann Nov Cameroon 120 No IGA 16 0 Canada 124 Model 1A IGA Signed 05- Feb- 14 Committed 29- Oct , Cape Verde 132 Model 1A IGA Substance 30- Jun Cayman Islands 136 Model 1B IGA Signed 29- Nov- 13 Signed 29- Oct , Central African Republic 140 No IGA 6 0 Chad 148 No IGA 5 0 Chile 152 Model 2 IGA Signed 05- Mar- 14 Committed 29- Oct China 156 Model 1A IGA Substance 26- Jun- 14 Committed 29- Oct Christmas Island 162 No IGA 0 0 Cocos (Keeling) Islands 166 No IGA 0 0 Colombia 170 Model 1A IGA Substance 23- Apr- 14 Signed 29- Oct Comoros 174 No IGA 4 0 Congo, Democratic Republic Of The 178 No IGA 15 0 Congo 180 No IGA 5 0 Cook Islands 184 No IGA Committed 29- Oct- 14 TBC Costa Rica 188 Model 1A IGA Signed 26- Nov- 13 Committed 29- Oct Cote d'ivoire 384 No IGA 32 1 Croatia 191 Model 1A IGA Substance 02- Apr- 14 Signed 29- Oct Cuba 192 No IGA 0 0 Curacao 531 Model 1A IGA Substance 30- Apr- 14 Signed 29- Oct Cyprus 196 Model 1A IGA Signed 02- Dec- 14 Signed 29- Oct Czech Republic 203 Model 1A IGA Signed 04- Aug- 14 Signed 29- Oct Denmark 208 Model 1A IGA Signed 19- Nov- 12 Signed 29- Oct Djibouti 262 No IGA 4 0 Dominica 212 Model 1A IGA Substance 19- Jun- 14 Committed 29- Oct Dominican Republic 214 Model 1A IGA Substance 30- Jun Ecuador 218 No IGA 34 4 Egypt 818 No IGA El Salvador 222 No IGA 68 4 Equatorial Guinea 226 No IGA 4 0 Eritrea 232 No IGA 0 0 Estonia 233 Model 1A IGA Signed 11- Apr- 14 Signed 29- Oct Ethiopia 231 No IGA 17 0 Falkland Islands (Malvinas) 238 No IGA 1 0 Faroe Islands 234 No IGA Signed 29- Oct Fiji 242 No IGA 6 0 Finland 246 Model 1A IGA Signed 05- Mar- 14 Signed 29- Oct France 250 Model 1A IGA Signed 14- Nov- 13 Signed 29- Oct , French Guiana 254 No IGA 0 0 French Polynesia 258 No IGA 4 0 French Southern Territories 260 No IGA 1 0 Gabon 266 No IGA 5 0 Gambia 270 No IGA 14 0 Georgia 268 Model 1A IGA Substance 12- Jun Haydon Perryman,

5 Germany 276 Model 1A IGA Signed 31- May- 13 Signed 29- Oct , Ghana 288 No IGA 56 4 Gibraltar 292 Model 1A IGA Signed 08- May- 14 Signed 29- Oct ,026 7 Greece 300 Model 1A IGA Ann Nov- 14 Signed 29- Oct Greenland 304 Model 1A IGA Substance 30- Jun- 14 Committed 29- Oct Grenada 308 Model 1A IGA Substance 16- Jun- 14 Committed 29- Oct Guadeloupe 312 No IGA 1 0 Guam 316 US Territory 4 0 Guatemala 320 No IGA Guernsey 831 Model 1A IGA Signed 13- Dec- 13 Signed 29- Oct , Guinea 324 No IGA 12 0 Guinea- Bissau 624 No IGA 1 0 Guyana 328 Model 1A IGA Substance 24- Jun Haiti 332 Model 1A IGA Substance 30- Jun Heard Island and McDonald Islands 334 No IGA 0 0 Holy See (Vatican City State) 336 Model 1A IGA Ann Nov Honduras 340 Model 1A IGA Signed 31- Mar Hong Kong 344 Model 2 IGA Signed 13- Nov- 14 Committed 29- Oct , Hungary 348 Model 1A IGA Signed 04- Feb- 14 Signed 29- Oct Iceland 352 Model 1A IGA Ann Nov- 14 Signed 29- Oct India 356 Model 1A IGA Substance 11- Apr- 14 Committed 29- Oct Indonesia 360 Model 1A IGA Substance 04- May- 14 Committed 29- Oct Iran 364 No IGA 0 0 Iraq 368 Model 2 IGA Substance 30- Jun Ireland 372 Model 1A IGA Signed 23- Jan- 13 Signed 29- Oct , Isle of Man 833 Model 1A IGA Signed 13- Dec- 13 Signed 29- Oct Israel 376 Model 1A IGA Substance 30- Jun- 14 Committed 29- Oct Italy 380 Model 1A IGA Signed 10- Jan- 14 Signed 29- Oct , Jamaica 388 Model 1A IGA Signed 01- May Japan 392 Model 2 IGA Signed 11- Jun- 13 Committed 29- Oct , Jersey 832 Model 1A IGA Signed 13- Dec- 13 Signed 29- Oct , Jordan 400 No IGA 63 9 Kazakhstan 398 Model 1A IGA Ann Nov Kenya 404 No IGA Kiribati 296 No IGA 1 0 Kosovo XXK Model 1A IGA Substance 02- Apr Kuwait 414 Model 1A IGA Substance 01- May Kyrgyzstan 417 No IGA 30 0 Lao People's Democratic Republic 418 No IGA 21 0 Latvia 428 Model 1A IGA Signed 27- Jun- 14 Signed 29- Oct Lebanon 422 No IGA Lesotho 426 No IGA 6 0 Liberia 430 No IGA 72 0 Libya 434 No IGA 11 2 Liechtenstein 438 Model 1A IGA Signed 19- May- 14 Signed 29- Oct Haydon Perryman,

6 Lithuania 440 Model 1A IGA Signed 26- Aug- 14 Signed 29- Oct Luxembourg 442 Model 1A IGA Signed 28- Mar- 14 Signed 29- Oct , Macao 446 Model 2 IGA Ann Nov- 14 Committed 29- Oct Macedonia, The Former Yugoslav 807 No IGA 25 0 Republic Of Madagascar 450 No IGA 8 0 Malawi 454 No IGA 18 2 Malaysia 458 Model 1A IGA Substance 30- Jun- 14 Committed 29- Oct Maldives 462 No IGA 7 0 Mali 466 No IGA 11 0 Malta 470 Model 1A IGA Signed 16- Dec- 13 Signed 29- Oct Marshall Islands 584 No IGA Committed 29- Oct Martinique 474 No IGA 1 0 Mauritania 478 No IGA 15 1 Mauritius 480 Model 1A IGA Signed 27- Dec- 13 Signed 29- Oct , Mayotte 175 No IGA 0 0 Mexico 484 Model 1A IGA Signed 09- Apr- 14 Signed 29- Oct Micronesia 583 No IGA 0 0 Moldova, Republic Of 498 Model 2 IGA Signed 26- Nov Monaco 492 No IGA Committed 29- Oct Mongolia 496 No IGA 22 4 Montenegro 499 Model 1A IGA Substance 30- Jun Montserrat 500 Model 1A IGA Ann Nov- 14 Signed 29- Oct Morocco 504 No IGA Mozambique 508 No IGA 19 1 Myanmar 104 No IGA 20 2 Namibia 516 No IGA 45 3 Nauru 520 No IGA Committed 29- Oct- 14 TBC 0 0 Nepal 524 No IGA 36 0 Netherlands 528 Model 1A IGA Signed 18- Dec- 13 Signed 29- Oct , New Caledonia 540 No IGA 5 0 New Zealand 554 Model 1A IGA Signed 12- Jun- 14 Committed 29- Oct , Nicaragua 558 Model 2 IGA Substance 30- Jun Niger 562 No IGA 6 0 Nigeria 566 No IGA Niue 570 No IGA Committed 29- Oct Norfolk Island 574 No IGA 0 0 Korea, Democratic People's 408 No IGA 2 0 Republic Of Northern Mariana Islands 580 US Territory 1 0 Norway 578 Model 1A IGA Signed 15- Apr- 13 Signed 29- Oct Palestine, State Of 275 No IGA 0 0 Oman 512 No IGA 33 5 Other No IGA Pakistan 586 No IGA Palau 585 No IGA 1 0 Panama 591 Model 1A IGA Substance 01- May- 14 Committed 29- Oct- 14 TBC Haydon Perryman,

7 Papua New Guinea 598 No IGA 5 1 Paraguay 600 Model 2 IGA Substance 06- Jun Peru 604 Model 1A IGA Substance 01- May Philippines 608 Model 1A IGA Ann Nov Pitcairn 612 No IGA 0 0 Poland 616 Model 1A IGA Signed 07- Oct- 13 Signed 29- Oct Portugal 620 Model 1A IGA Substance 02- Apr- 14 Signed 29- Oct Puerto Rico 630 US Territory 4 0 Qatar 634 Model 1A IGA Substance 02- Apr- 14 Committed 29- Oct Reunion 638 No IGA 1 0 Romania 642 Model 1A IGA Substance 02- Apr- 14 Signed 29- Oct Russian Federation 643 No IGA Committed 29- Oct , Rwanda 646 No IGA 18 0 Saint Barthelemy 652 No IGA 0 0 Saint Helena 654 No IGA 0 0 Saint Kitts and Nevis 659 Model 1A IGA Substance 04- Jun- 14 Committed 29- Oct Saint Lucia 662 Model 1A IGA Substance 12- Jun- 14 Committed 29- Oct Saint Martin (French part) 663 No IGA 2 0 Saint Pierre and Miquelon 666 No IGA 1 0 Saint Vincent and The Grenadines 670 Model 1A IGA Substance 02- Jun- 14 Committed 29- Oct Samoa 882 US Territory Committed 29- Oct San Marino 674 Model 2 IGA Substance 30- Jun- 14 Signed 29- Oct Sao Tome and Principe 678 No IGA 5 1 Saudi Arabia 682 Model 1A IGA Substance 24- Jun- 14 Committed 29- Oct Senegal 686 No IGA 18 0 Serbia 688 Model 1A IGA Substance 30- Jun Seychelles 690 Model 1A IGA Substance 28- May- 14 Committed 29- Oct Sierra Leone 694 No IGA 10 1 Singapore 702 Model 1A IGA Signed 09- Dec- 14 Committed 29- Oct , Sint Maarten (Dutch part) 534 No IGA Committed 29- Oct Slovakia 703 Model 1A IGA Substance 11- Apr- 14 Signed 29- Oct Slovenia 705 Model 1A IGA Signed 02- Jun- 14 Signed 29- Oct Solomon Islands 090 No IGA 4 0 Somalia 706 No IGA 1 0 South Africa 710 Model 1A IGA Signed 09- Jun- 14 Signed 29- Oct South Georgia and the South 239 No IGA 0 0 Sandwich Islands Korea, Republic of 410 Model 1A IGA Substance 02- Apr- 14 Signed 29- Oct South Sudan 728 No IGA 8 0 Spain 724 Model 1A IGA Signed 14- May- 13 Signed 29- Oct , Sri Lanka 144 No IGA 66 5 Sudan 729 No IGA 8 2 Suriname 740 No IGA 10 0 Swaziland 748 No IGA 10 0 Sweden 752 Model 1A IGA Signed 08- Aug- 14 Signed 29- Oct Switzerland 756 Model 2 IGA Signed 14- Feb- 13 Signed 19- Nov , Haydon Perryman,

8 Syrian Arab Republic 760 No IGA 0 0 Taiwan 158 Model 2 IGA Substance 23- Jun Tajikistan 762 No IGA 29 1 Tanzania, United Republic Of 834 No IGA 27 2 Thailand 764 Model 1A IGA Substance 24- Jun- 14 1, Timor- Leste 626 No IGA 2 0 Togo 768 No IGA 10 0 Tokelau 772 No IGA 0 0 Tonga 776 No IGA 2 0 Trinidad and Tobago 780 Model 1A IGA Ann Nov- 14 Committed 29- Oct Tunisia 788 Model 1A IGA Ann Nov Turkey 792 Model 1A IGA Substance 03- Jun- 14 Committed 29- Oct Turkmenistan 795 Model 1A IGA Substance 03- Jun Turks and Caicos Islands 796 Model 1A IGA Signed 01- Dec- 14 Signed 29- Oct Tuvalu 798 No IGA 0 0 Uganda 800 No IGA 28 2 Ukraine 804 Model 1A IGA Substance 28- Jun United Arab Emirates 784 Model 1A IGA Substance 21- May- 14 Committed 29- Oct United Kingdom 826 Model 1A IGA Signed 12- Sep- 12 Signed 29- Oct , United States 840 US United States Minor Outlying 581 US Territory 0 0 Islands Uruguay 858 No IGA Committed 29- Oct Uzbekistan 860 Model 1A IGA Substance 30- Jun Vanuatu 548 No IGA Committed 29- Oct- 14 TBC 9 1 Venezuela, Bolivarian Republic Of 862 No IGA 68 6 Viet Nam 704 No IGA Virgin Islands (British) 092 Model 1B IGA Signed 30- Jun- 14 Signed 29- Oct , Virgin Islands (U.S.) 850 US Territory 2 0 Wallis and Futuna 876 No IGA 1 0 West Bank And Gaza 275 No IGA 28 1 Western Sahara 732 No IGA 0 0 Yemen 887 No IGA 20 2 Zambia 894 No IGA 24 1 Zimbabwe 716 No IGA 9 1 Total 147,043 4,613 Haydon Perryman,