Private Funds, the Cayman Islands IGA and FACTA

Simon Riveles Cayman IGA, FACTA, Uncategorized

By Simon Riveles and Simon M. Cooke. On November 29, 2013, the Cayman Islands signed a FACTA Model 1 intergovernmental agreement (“IGA”) with the United States. The IGA ensures that financial institutions located in the Caymans, whose investors include ‘Specified U.S. Persons’ (defined below), will be able to largely bypass the burdensome FACTA compliance obligations that are applicable to financial institutions located in Model 2 …

IRS Launches Online System For FATCA Registration

Simon Riveles BVI, FACTA, IRS, Offshore Funds

By Peter Tyson and Simon Riveles On August 19, 2013 the Internal Revenue Service (IRS) launched a new online registration system for financial institutions needing to register with the IRS under the Foreign Account Tax Compliance Act (FATCA). FATCA, which was enacted as part of the Hiring Incentives to Restore Employment (HIRE) Act of 2010 to counter tax evasion, requires foreign financial institutions, which include …

FACTA’s Impact on Offshore and Domestic Hedge Funds

Simon Riveles FACTA, IRS

The Foreign Account Tax Compliance Act (“FACTA”) was enacted by Congress in 2010 as part of the HIRE Act and will become effective January 1, 2013. The legislation is a new cornerstone in the U.S. government’s long standing campaign to crack down on Americans who hide assets in overseas accounts to avoid U.S. income taxes. FACTA applies to virtually all non-U.S. funds making investments in …