CRS and FATCA expert

Time to Renew the FFI Agreements

Peter Cotorceanu Blog, FATCA, FATCA Entity Classification

Upon registration for a GIIN via the IRS FATCA Registration Portal, certain FIs (i) subject to a Model 2 IGA, or (ii) not subject to any IGA automatically entered into a contract with the IRS known as the FFI Agreement. The FFI Agreement sets forth the FI’s rights and responsibilities (with responsibilities outnumbering rights heavily). In the scrum of FATCA …

Panama Antes Up: AEOI Regulations Published

Peter Cotorceanu Blog, CRS, FATCA, OECD

The relationship between Panama and international tax transparency has proved a bit tumultuous over the past two years (or hadn’t you heard?). As a result, the country’s release of FATCA and OECD CRS regulations on 12 May (available here) prompted considerable curiosity (in me anyway) as to Panama’s chosen approach. Unfortunately, my poor Spanish hampers any detailed analysis of the …

The OECD and the G-7: The Dynamic Duo of Fighting Tax Crime

Peter Cotorceanu Blog, CRS, CRS Disclosure Facility, OECD

On 5 May, the OECD announced the opening of a “CRS Disclosure Facility”. (The Announcement is available here.) The Disclosure Facility is intended to facilitate reporting of “loopholes”, “schemes”, “products”, or “arrangements” that may be used for circumventing CRS. The OECD’s announcement was followed on 13 May by a formal request from the G-7 member states at the annual meeting …

CRS and FATCA expert

Cayman CRS Guidance Part 2: Entity Equity-Interest Holders

Peter Cotorceanu Blog, Cayman Guidance Notes, CRS, Entity Equity, Interest Holders, OECD

In the last blog, we looked at several aspects of the Cayman CRS guidance that go above and beyond what CRS itself requires. In today’s blog, we look at a different aspect of the Cayman guidance. At first blush, this aspect appears to follow a requirement of the OECD’s CRS Implementation Handbook that flatly contradicts CRS. Read closely, however, it …

OECD Releases Updated CRS Commentary and FAQs (Part 1)

Peter Cotorceanu Blog, CRS Commentary and FAQs, OECD

Following months of rumor and prognostication about a materially amended Commentary to the Common Reporting Standard (CRS Commentary), the OECD released the second edition of the Standard for Automatic Exchange of Financial Account Information in Tax Matters on 6 April, available here. In contrast to the predictions of forthcoming seismic changes, the actual changes (at least in current form) are …

CRS and FATCA expert

URGENT: Do Fiduciaries Have to Register Their FATCA Sponsored Entities by 1 January 2017?

Peter Cotorceanu Blog, FATCA, FATCA Sponsored Entities

Many fiduciaries have recently received letters from banks and other financial institutions about their sponsored entities under FATCA. These letters generally take one of two forms. The first either implies or outright states—incorrectly—that all sponsored entities must register with the IRS and obtain their own Global Intermediary Identification Numbers (GIINs) by 1 January 2017. The second type of letter says …

Why, and When, the OECD’s CRS Implementation Handbook and FAQs Should be Ignored.

Peter Cotorceanu Blog, CRS, OECD

In my last blog, I showed why the OECD’s FAQ (Available here) saying that all Protectors are “Account Holders” in FI trusts doesn’t make sense. Worse than that: Why that FAQ is flatly wrong and directly contradicts the OECD’s very own definition of “Account Holders” in the Common Reporting Standard itself. I won’t re-tread that discussion here. If you haven’t …

Reflections from Panama

Peter Cotorceanu Blog, Panama Papers

Mossack Fonseca is, of course, the Panamanian law firm whose files were stolen and are now known euphemistically as “the Panama Papers”. I just call them what they are—the Stolen Client Files. Not as catchy as “the Panama Papers”, for sure, but why use the anodyne name the thief gave them? Ideas—and names—matter. Look, I am all for rooting out …