On 22 October 2013, both Jersey and Guernsey signed 'intergovernmental agreements' on the automatic exchange of tax information with the UK, adding to existing provisions that currently provide for information to be exchanged between the authorities of the two Crown Dependencies and the United Kingdom.
As a result of these IGAs, all financial institutions (“FI”) in the Islands will be required to report financial accounts held by UK residents. In addition to the reporting obligations, FIs will be obliged to take on due diligence obligations as stated in the IGAs in order to identify the reportable accounts.
Historic disclosure facility: As part of the overall agreement to improve international tax compliance, a disclosure facility has been put in place in Jersey and Guernsey allowing eligible individuals (“relevant persons”) to disclose to the UK HMRC the existence of accounts and other assets in Jersey/Guernsey and regularise their past tax affairs prior to information being automatically exchanged. The eligibility criteria are set out in the Jersey Disclosure Facility (‘JDF’)/Guernsey Disclosure Facility (‘GDF’) Memorandum of Understanding signed by Jersey/Guernsey and the UK in March 2013.
A “relevant person” is defined as a natural person resident in the UK for UK tax purposes between 6 April 1999 and 31 December 2013 or a legal person incorporated in the UK or resident in the UK for UK tax purposes between 6 April 1999 and 31 December 2013. The JDF/GDF are not available to persons already under investigation by HMRC as at 6 April 2013.
The JDF/GDF run from 6 April 2013 until 30 September 2016. Under Regulations which came into force on 25 June 2013, all financial intermediaries in Jersey and Guernsey are obliged to contact relevant clients to make them aware of the JDF/GDF both before 31 December 2013 and again in the six months prior to the facility coming to an end on 30 September 2016.
If you think this may be relevant to you and consider it is important to obtain further guidance on the JDF/GDF about eligibility and making a disclosure, please visit the HMRC website, http://www.hmrc.gov.uk/offshoredisclosure/ for further information
Aztec continues to work to ensure clients records are FATCA compliant and our FATCA team is able to assist all clients with their own reporting obligations. Once that the US IGA negotiations with Jersey and Guernsey are complete and the UK FATCA reporting requirements are also finalised, we plan writing to all clients in Q1 2014 to update them on these requirements and the timetable to ensure all the deadlines and requirements are met in a timely fashion.
previous comment / Udi Vithanage
If you would like to discuss outsourcing to the Aztec Group or are considering migrating a fund or SPV, please call James Duffield, Head of Business Development, on +44 20 3818 0250.
Aztec Group Guernsey
Aztec Financial Services (Guernsey) Limited
PO Box 656, East Wing, Trafalgar Court
Les Banques, St Peter Port, Guernsey, GY1 3PP
Telephone: +44 1481 749700
Facsimile: +44 1481 749749
Aztec Group Jersey
Aztec Financial Services (Jersey) Limited
Aztec Group House, PO Box 730
11-15 Seaton Place, St Helier, Jersey, JE4 0QH
Telephone: +44 1534 833000
Facsimile: +44 1534 833033
Aztec Group UK - London
Aztec Financial Services (UK) Limited
2 Throgmorton Avenue
Telephone: +44 20 3818 0250
Aztec Group Luxembourg
Aztec Financial Services (Luxembourg) S.A.
8, rue Lou Hemmer, L-1748, Luxembourg – Findel
Grand-Duché de Luxembourg
Telephone:+352 246 160 6000
Facsimile: +352 246 160 6016
Aztec Group The Netherlands
Aztec Financial Services (Netherlands) BV
Spaces Zuidas, Barbara Strozzilaan 201
1083 HN Amsterdam, The Netherlands
Telephone: +31 20 794 4820
Facsimile: +31 20 794 4821
Aztec Group UK - Southampton
Aztec Financial Services (UK) Limited
Forum 3, Solent Business Park
Parkway South, Whiteley, Fareham, PO15 7FH
Telephone: +44 238 202 2300
Facsimile: +44 238 202 2309