Cayman Islands Update: Economic Substance Declaration for an Entity Resident in Another Jurisdiction – Finance and Banking

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Cayman Islands: Cayman Islands Update: Economic Substance Declaration for an Entity Resident in Another Jurisdiction

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The Department for International Tax Cooperation (“DITC”) has informed the industry that the forms for a tax resident entity in another jurisdiction (“TRO Forms”) for successive reporting periods, i.e. a fiscal year following a fiscal year in which a TRO form has already been submitted by an entity, are now accepted via the DITC portal.

Responsible persons, or designated secondary users, can now submit the TRO form for a subsequent reporting period by logging into the DITC portal.

The deadline for submitting TRO forms is 12 months from the last date of the reporting period being reported (regardless of “relevant activity (s)” carried out. For example, the submission deadline for entities required to submit a TRO form for a reporting period / fiscal year ending December 31, 2020 is December 31, 2021.

A updated version of the DITC Portal User Guide is available and provides additional guidance on how to complete and submit a TRO form for a subsequent reporting period.

The DITC has indicated in the User Guide that if a TRO form has been submitted for an earlier period, the TRO form for the following period will be filled in with certain information from the corresponding ESN (e.g. relevant activity (s) (s)) and certain information from the TRO form for the previous period (eg “jurisdiction of tax residence”). However, other fields will not be filled in with any information and will have to be completed. It is possible to manually edit the information on the TRO form, however, additional evidence may be required (eg when the ‘TIN issued by’ has changed).

The DITC further indicated that the Responsible Person, or Designated Secondary User, should pay attention to the submission status of the TRO form. When the TRO form has been rejected and has the status ‘Submission Failed’, that person will need to access the TRO form on the DITC Portal, review the rejection message and take the necessary steps to rectify the TRO form (retrieve, modify and resubmit the TRO form).

It is also possible that the DITC contacted the responsible person directly to correct any deficiencies that arose during their review of the initial TRO form. The DITC also indicated that if any deficiencies are reported in the original TRO form, they can be corrected by providing an explanation in the “other” section of the following TRO form and that any other change in circumstances should also be reflected in the TRO form. ulterior. Form.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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