Cayman extends deadline for common reporting standard reports
TAX BLOG |
The Cayman Islands has announced that its portal will remain open to accept common reporting standards (CRS) reports filed through July 31, 2017, and has extended the deadline for financial institutions (FIs) to notify the Cayman government of their intent to file CRS reports through June 30, 2017. The reports are still officially due on May 31, 2017, with notification due by April 30, 2017, but the Cayman government has indicated that it will not impose penalties for CRS reports and notifications filed by July 31 and June 30 respectively. The Cayman Foreign Account Tax Compliance Act (FATCA) reporting and notification deadlines of April 30 and May 31 remain unchanged.
The Cayman government’s acceptance of CRS reports without penalty past the official deadline is, in effect, an extension that provides some, but not much, relief for funds, banks and other FIs resident in Cayman that are still struggling to understand and manage new due diligence and reporting obligations under CRS.
The additional time granted should be used by FIs to assign resources or modify systems and procedures as needed to comply with CRS. However, rapidly approaching CRS deadlines in other jurisdictions, as well as the unchanged Cayman FATCA reporting deadlines, will likely result in overlapping responsibilities and additional risks that are ultimately even more challenging to manage.
Stay tuned for more; watch our webcast on common reporting standards.