The Comply Catch-Up – April 2021 Issue 5

Apr 30, 2021

Comply Updates

 

  • Our Director of Client Services, Jessica Metts, spoke at the Sovos Crypto Currency Workshop. She dove into the Forms W-8 & W-9 collection and withholding rate calculations. We would like to take this opportunity to thank Sovos for hosting such a wonderful event.
  • Comply Exchange sponsored the 2021 Tax Reporting and Withholding Conference. It was great to interact with the community in our virtual booth and show off our latest innovations. Our subject matter expert Iris Goldman hosted a session alongside Aureon Herron-Hinds at RSM, discussing Account Opening and Vendor On-Boarding including Forms W-8 and W-9, Electronic Signatures, Presumption Rules, and much more. Despite the ongoing pandemic The Tax Reporting Group hosted a terrific conference, and we look forward to 2022!
  • Our latest innovation, the eForms mobile app, will soon be available for download in both the Apple App Store and Google Play Store. This solution is simple to implement, low cost and an efficient way to deliver an electronic submission process to your account holders and customers. You can take a sneak peek of our eForms mobile app here.
  • We are also excited to announce our upcoming live demonstration where we will be able to walk you through the eForms mobile app and discuss the benefits, such as providing your account holders with the most up to date and efficient process to submit their tax Forms W-8BEN or W-9. Stay tuned for the date and time of our first ComplyLive!

 

Key Dates & Reminders

Form 1099 Key Dates and Reminders

Now that Forms 1099 have been filed for the year, it is time to consider any errors noted and the corrections required. There are certain errors that are never inconsequential and always require correction. Depending on the error, the correction process may require the filer to follow a one-step or two-step process that must be completed by August 1.

For details regarding the correction process, visit our 1099 Errors & Corrections article.

 

 

FATCA / CRS Key Dates & Reminders – Select Jurisdictions

British Virgin Islands

  • The BVI International Tax Authority (ITA) has announced that the FATCA and CRS filing deadlines have been extended to June 30, 2021 (previous deadline was May 31, 2021).

Canada

  • The Part XVIII Information Return must typically be filed before May 2nd and the Part XIX Information Return must be filed by May 1st, following the calendar year to which the information return applies. Since May 1, 2021 falls on a Saturday, the due date for both returns for 2020 reporting year is May 3, 2021.

Cayman Islands

  • The Cayman Islands Department for International Tax Cooperation (DITC) published an Updates Bulletin on April 15, 2021. Click here to read the full Updates Bulletin. A few key items to highlight:
    • CRS & FATCA reporting deadlines for the 2019 and 2020 reporting periods:
      • Registration (notification): April 30, 2021
      • 2019 & 2020 CRS Reporting: July 31, 2021
      • 2019 & 2020 CRS Filing Declaration: July 31, 2021
      • 2019 & 2020 FATCA Reporting: July 31, 2021
      • 2019 & 2020 CRS Compliance Form: September 15, 2021
    • The importance of correct classifications and notifications under CRS and FATCA regulations. The DITC will be matching CRS and FATCA notification data against other data sources, such as, Economic Substance notifications, CIMA licenses and registrations, and the IRS GIIN registration list.
    • Updated CRS XML Schema Version 2.0 and CRS User Guide Version 3.0 are now applicable for all CRS XML Returns submitted on the DITC Portal.
    • The DITC Compliance Team have identified areas of noncompliance with CRS Regulations. Noncompliance of the CRS Regulations may result in an Administrative Penalty of up to $50,000 for a body corporate, or otherwise $20,000. In appropriate cases, criminal prosecution may also be initiated by the Director of Public Prosecutions.
    • Any outstanding FATCA Returns should be uploaded to the Portal as soon as possible. The DITC Portal will begin to accept FATCA XML Returns for the 2020 Reporting Period in May 2021.

Malta

  • Due to the COVID-19 pandemic, the Office of the Commissioner for Revenue of Malta announced an extension for FATCA and CRS reporting in relation to Reporting Year 2020. The extended deadline is June 30, 2021.

Singapore

  • The Inland Revenue Authority of Singapore (IRAS) published updates informing all Reporting SGFIs that both FATCA and CRS Return Filing for reporting year 2020 commenced on April 19, 2021. IRAS also encouraged Reporting SGFIs to submit their FATCA and CRS returns by May 15, 2021, to allow sufficient time to resolve any issues and indicated enforcement actions will be taken against Reporting SGFIs that do not submit their returns on time.

Taiwan

  • The Ministry of Finance in Taiwan announced that the United Kingdom has been added to the list of CRS reportable jurisdictions with which Taiwan will exchange information. The reporting deadline will be every September with respect to previous year information starting with September 2021. The Ministry of Finance is urging financial institutions to prepare in advance to facilitate the completion of the online reporting by the end of June this year.

United Kingdom

  • The United Kingdom’s HMRC published a list of the CRS reportable jurisdictions for the 2021 reporting year in respect of 2020 reportable accounts. It is noted that Albania, Peru, and Taiwan have been added to the list of reportable jurisdictions. Arrangements have also been entered into with Oman, but Oman is not yet a reportable jurisdiction.

United States

  • The U.S. Department of Treasury updated its FATCA Agreements page to include Cabo Verde on the list of Intergovernmental Agreements (IGA) as a Model 1 Jurisdiction. The IGA was signed March 30, 2021.