IEIM402010 - Reportable Information: Reportable Account Holders

Reportable Information: Reportable Account Holders

The different regimes define the Reportable Account Holders in different ways but the objective in each case is the same – to identify whether the Account Holder is linked to the jurisdiction receiving the information in a way that indicates that they may be subject to taxation in that jurisdiction.

FATCA

Under the US IGA, Financial Institutions are required to carry out due diligence procedures to identify Account Holders who are Specified US Persons. A US person is a US citizen or resident individual, a partnership or corporation organised in or under the laws of the United States (or any state thereof) and trusts falling within the jurisdiction of the US courts and where one or more US persons have the authority to control the administration of the trust.

Specified US Persons then include all of these subject to a list of exemptions in Article 1 (gg) of the IGA. This covers corporations, the stock of which is regularly traded on recognised securities markets (and their affiliates), and a number of entities largely mirroring the list of Non-Reporting Financial Institutions [see IEIM400920] specified in the IGA. In addition, certain brokers and dealers in securities, commodities or derivative financial instruments are exempt.

CRS

The CRS uses the concept of a Reportable Person rather than a specified person but the outcome is similar. A Reportable Jurisdiction person is an individual or entity that is resident under the tax laws of the Reportable Jurisdiction or, for an entity that has no residence for tax purposes, the jurisdiction in which its place of effective management is situated.

Once again any corporations (plus affiliates) with regularly traded stock are excluded as are government entities, international organisations, Central Banks and all Financial Institutions (with the exception of managed Investment Entities in non-CRS Participating Jurisdictions, which are treated as Passive NFEs [see IEIM403360].

One difference arises for brokers and dealers in securities, etc., as these are in scope as reportable persons unless they fall within one of the definitions of Financial Institution [see IEIM400600].