Weekly FATCA Round-up: May 28-June 3, 2016

• Obtaining Self-Certification: Due to a large number of financial accounts, representatives of FIs found it practically very difficult to physically obtain self-certification from account holders. As a remedy, self-certification can also be obtained through “Internet Banking platform from the user account where the customer has transaction rights”.
• Tax Identification Number (TIN): Clarification regarding a FIs collection of TIN as follows.
  • FIs are not required to collect TIN (including its functional equivalent) if it is not issued by the relevant country or territory outside India in which the person is a resident for tax purposes.
  • Furthermore, FIs are not required to collect TIN information from people (residents for tax purposes in a country or territory outside India) who may be eligible to obtain a TIN (or the functional equivalent) in their country or territory of residence, but have not yet obtained a TIN. However, FIs may make a note of this and seek TIN information from the person after he obtains the same.
• Account Balance/Value: Regarding the valuation of custodial accounts maintained by Depository/Depository Participant/Brokers which contain various securities, India has decided that valuation may be done at the values regularly communicated by Depository (CDSL/NSDL) to the depository participants/brokers.
• Procedure for Furnishing the Report: This section references two separate documents which relate to the registration and submission of documents under FATCA and CRS.
  • To review the procedure for registration and submission of reports under FATCA and CRS, India instructs users to review Notification No. 4 (04/06/16), which is available at www.incometaxindia.gov.in.
  • India also released a User Manual for the Registration, Upload, and View of Form 61, 61B, and Form 15CC. That document can be found here.

Here are the full notes.

• Section 15.13.1, Lower Value Accounts (p. 135):
  • “The review of pre-existing individual accounts that are Lower Value Accounts at 30 June 2014 must be completed by 31 December 2016.”
• Section 17.2, Reportable Accounts (p. 142):
  • “Where a Pre-existing Entity Account closes prior to the Financial Institution carrying out its due diligence procedures, then the account is still required to be reviewed. Where following the due diligence procedures the account is found to be reportable, the Financial Institution must report the information as required under Section 19.2.7 and in accordance with the requirements under Section 17.10. This should only apply to accounts that exist at 30 June 2014 and close before 31 December 2016 as all accounts should have been reviewed by that date. This will not apply to accounts that are closed prior to 30 June 2014.”
• Section 17.10, Timing of Reviews (p. 145):
  • “The review of pre-existing entity accounts with an account balance or value that exceeds $250,000 at 30 June 2014 must be completed by 31 December 2016.”

In all three sections, the previously listed date was June 30, 2016.  

Slovenia Releases Third Edition of FATCA Reporting Information Guidance; Changes FATCA Due Date

Slovenia recently released a third edition of FATCA Reporting Information, Financial Reporting of Financial Institutions.  This guide details which accounts to report, what information to report, and the coverage of reporting.

British Virgin Islands Extends FATCA Reporting Deadline to June 17, 2016

The International Tax Authority of the British Virgin Islands has announced an official extension of the statutory deadline for US FATCA filing to June 17, 2016. The deadline was originally set for May 31, but the government is allowing all Financial Institutions that missed the deadline to submit their returns before June 17.