The Isle of Man, Jersey and Guernsey authorities have each issued draft Guidance Notes following on from the signing by each Island of intergovernmental agreements in relation to the automatic exchange of information with the UK (“UK IGA”) and the US (“US IGA”) in late 2013. The Guidance Notes cover all three Islands and are identical in all material respects and deal with both the US and UK IGAs. Although they are based on the Guidance Notes issued by HMRC, they have been refined to reflect local law and practice.
The Guidance Notes are published in draft form and are therefore subject to change. Whilst the Guidance Notes (all 145 pages!) do offer a significant level of detail in many areas, they also demonstrate the complexity of the IGAs. In particular, the concepts and approach that US FATCA (and thus the IGAs) introduce do not always sit easily in the arena of trust and company structures that are professionally managed in the Islands. As such, whilst the Guidance Notes do provide a welcome direction on many issues, there are also many areas where financial institutions will need further assistance.
If you would like to discuss how KPMG can help, please get in touch with us.
A link to the Isle of Man Government News Release can be found here.