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Hansuke Consulting Limited is registered in England and Wales number 10136213 with its registered office at: 71-75 Shelton Street, London WC2H 9JQ. Hansuke Consulting Limited is an accredited and regulated member firm of the Institute of Chartered Accountants in England and Wales (ICAEW).

 

In accordance with the disclosure requirements of the Provision of Services Regulations 2009, our professional indemnity insurer is International General Insurance Co (UK) Limited, of 133 Houndsditch London EC3A 7AH. The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada.

Alerts

Guernsey Trust Alert

12 April 2017

Background
 

Under the Common Reporting Standard (“CRS”), trusts will usually either be regarded as an investment entity (and hence a financial institution (“FI”)) or a passive Non-Financial Entity (“NFE”). Whilst being a FI places reporting obligations on the trust itself, in the event that the trust is a passive NFE, it will be obliged to furnish identification of itself and its “controlling persons” to other FIs (for example, banks), with which it maintains financial accounts.


The definition of controlling person of a passive NFE is widely drawn and can even encompass individuals who may not even be aware that they may potentially be beneficiaries of discretionary trusts. This will inevitably cause issues where trustees of passive NFE trusts need to provide details of tax residence and tax identification numbers of beneficiaries to banks with whom the trust maintains an account.


In order to help mitigate the impact on passive NFE trusts, CRS contains an option for the alignment of the controlling persons of such trusts with those that would be regarded as “reportable persons” of an investment entity. If this option is taken up, then a beneficiary of a discretionary trust would only be reportable in the event that they actually received a distribution.

Contact us

Ali Kazimi

Managing Director

alikazimi@hansuke.co.uk

Tel: +44 (0) 203 865 0626

Chris Orchard

Senior Principal chrisorchard@hansuke.co.uk