The Cayman Department for International Tax Cooperation (DITC) published an updated User Guide version 9.0 for use in 2022. Important updates include the following:
- FI Deactivations (pages 24 and 25). On the Reporting Page, in the Framework Drop Down for CRS and FATCA, Principal Points of Contact (PPoC) will find the form to submit a request for a Financial Institution (FI) to be deactivated from the DITC Porta. They will choose FI Deactivation and Create in order to do so. The DITC will review each request and determine whether to approve or deny the request. In order for approval, the PPoC must provide sufficient evidence or deactivation and the FI must complete all outstanding reporting obligations. Evidence for deactivation includes documents such as a Certificate of Dissolution.
- Approval of FI deactivation. In this case, the PPoC will receive a confirmation e-mail from the DITC. The PPoC and Secondary Users will not be able to submit reporting for CRS and FATCA and they will not be able to review any prior submissions on the DITC Portal. Authorizing Persons will no longer have access either.
- Declined FI deactivation. Also in this case, the PPoC will receive an e-mail with this information and the deactivation form status will change from ‘Submitted’ to ‘Action Required.’ The Reporting tab will provide the reason for rejection. Once the PPoC addresses the rejection reason, then it may submit a new FI Deactivation Form. These forms cannot be edited or resubmitted. They can only be deleted.
- Corrections and Deletions of Data for CRS XML Upload (pages 29-31). Users that need to make an update to a submitted return or that need to address a correction required by the DITC, must submit a new XML file containing the correction or deletion. They may use the XML Generator Tool for up to 50 accounts, which they can download from the DITC Portal. The MessageTypeIndic must be set to CRS702, which translates to ‘the message contains corrections for previously sent information.’ Users must assign a new unique DocRefID to each corrected or deleted Account Report and Reporting FI element. Corrections (DocTypeIndicOECD2) are required where the previously reported data was incorrect or incomplete. Deletions (DocTypeIndicOECD3) are required where the previously reported data was reported in error or in relation to the relevant Reportable Jurisdiction. Accounts are deleted in their entirety. Users that want to delete one or more data points will do this as a correction and not a deletion. After submitting a correction and/or deletion, the user must resubmit their CRS Filing Declaration. The User Guide includes additional instructions for correcting and deleting one or more account reports, and correcting and deleting the Reporting FI element. These new rules better align with the Organisation for Economic Co-operation and Development’s (OECD’s) Common Reporting Standard User Guide found here: https://www.oecd.org/tax/exchange-of-tax-information/common-reporting-standard-xml-schema-user-guide-for-tax-administrations-june-2019.pdf
Check out User Guide version 9.0 here: https://www.ditc.ky/wp-content/uploads/DITC_Portal_User_Guide.pdf
Make sure to follow Comply Exchange for more industry updates and subscribe to the Comply Catch-up for a full industry round-up at the end of each month!