Following on from the introduction of FATCA in the US, with effect from 1st July 2014 IFDS processes are geared up to the identification of ALL non-UK tax residents, not just US and the UK's Crown Dependencies and Overseas Territories (eg: Jersey, Guernsey, Isle of Man, Gibraltar).
From 2017, most countries will be participating in the Automatic Exchange of Information (AEOI), based on the OECD's Common Reporting Standard (CRS).
As UK Financial Institutions, all Management Companies are required to report relevant accounts annually to HMRC.
For all Entities that were invested as at 30th June 2014, we will initially check whether they have a holding in a reportable product/fund and then attempt to classify them according to the FATCA definitions.
All new Entities that invest from 1st July 2014 must complete a Self-Certification Form for Entities to confirm their classification for tax reporting purposes.
If they fail to complete this, we will not reject the deal, but a chasing letter will go out to request this.
If they do not return a Self-Certification Form for Entities within 90 days their account will become reportable to HMRC.