FATCA update for Cayman financial institutions
The Foreign Account Tax Compliance Act (FATCA), which was enacted by the US in 2010 and comes into force on 1 July 2014, imposes due diligence, information reporting and control burdens on a range of non-US financial intermediaries and investment entities (foreign financial institutions or FFIs), including banks, other financial institutions, certain insurance companies, investment funds and other collective investment vehicles.
FFIs will be required to register with the Internal Revenue Service (IRS) and disclose account-holder information for certain US persons that have investments in or are managed by FFIs.
Failure by an FFI to register with the IRS or to comply with the reporting obligations will result in a 30 per cent withholding tax being imposed on gross payments to the FFI from a US resident payor…
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This case concerned a monetary award made in an arbitration before the London Court of International Arbitration.
International co-operation in cross-border insolvencies: smoothing the path for foreign liquidators in Hong Kong
A decision of the High Court of the Hong Kong SAR should make the task of liquidators of BVI, Cayman and other foreign companies more straightforward in the region.