Frequently asked questions FATCA overview · FATCA overview 1 What is FATCA? FATCA stands for...
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Frequently asked questions FATCA overview 1 What is FATCA? FATCA stands for Foreign Account Tax Compliance Act and is a law designed to tackle perceived tax evasion using offshore accounts. Originally this was a US initiative, but now there are FATCA agreements in place between the UK and the US, the Crown Dependencies (Isle of Man, Guernsey and Jersey), as well as the Overseas Territories (Gibraltar). This means that Banks and other Financial Organisations must collect information about the tax residency (and citizenship) of their account holders. In some cases they will need to report this to HM Revenue & Customs (‘HMRC’), who will in turn forward it to the appropriate tax authorities. 2 What does this mean in practice? Every year, Banks such as Santander and other Financial Organisations will be required to report information to HMRC on financial accounts held directly or indirectly by US Persons and tax residents of the Crown Dependencies and Gibraltar. The questions we ask all customers when they open an account have changed so we can identify and report the right people. 3 How do I know if I am affected? US persons FATCA will affect both personal and business customers who are treated as a ‘US Person’ for US tax purposes. FATCA will also affect certain types of businesses with US owners. The term US person includes the following (but is not limited to): ■ A citizen of the US, including an individual born in the US but resident in another country (who has not given up their US citizenship) ■ A person residing in the US, including US green card holders ■ Certain persons who spend a significant number of days in the US each year ■ US Corporations, US Partnerships, US estates and US trusts For more information, please visit the IRS website or contact your tax advisor. Residents of Guernsey, Jersey, Isle of Man & Gibraltar FATCA also requires UK Banks to identify customers who are tax resident in the Crown Dependencies or Gibraltar. We will determine this based on information provided when opening an account with Santander such as address, country of residence, place incorporation etc. For more information, please visit the HMRC website or contact your tax advisor. UK persons If you’re opening an account with our Isle of Man or Jersey branch, we are required to identify customers who are tax resident in the UK. For more information, please visit the IRS website or contact your tax advisor. 4 When does FATCA start? The new law comes into effect from 1 July 2014; however Banks can start to make changes ahead of this date. 5 Are all Banks impacted by FATCA? Yes. All Banks and Financial Organisations will be affected by FATCA, although their approach to implementing the new law may differ. 6 Is FATCA applicable to personal or business customers? FATCA legislation will affect both personal and business customers who hold an account with Santander. Personal Customers 7 What does FATCA mean for me if I am a US Person? If you are considered a US Person, we may ask you to supply us with additional information or documentation. We will need to report information about you and your account on an annual basis to HMRC (or the Jersey/Isle of Man tax authorities if your account was opened there).The local tax authority will then share this information with the IRS. We will be writing to affected customers in due course, however Santander cannot offer any advice relating to FATCA and we recommend you speak to your tax advisor if you need to discuss your tax position. 8 What does FATCA mean for me if I am a tax resident of Guernsey, Jersey, the Isle of Man or Gibraltar? If you are considered a tax resident of one of the above, we may ask you to supply us with additional information/ documentation. We will need to report information about you and your account on an annual basis to HMRC, who will then share this information with the relevant tax authority.
Transcript of Frequently asked questions FATCA overview · FATCA overview 1 What is FATCA? FATCA stands for...
Frequently asked questionsFATCA overview
1 What is FATCA?FATCA stands for Foreign Account Tax Compliance Act and isa law designed to tackle perceived tax evasion using offshoreaccounts. Originally this was a US initiative, but now there areFATCA agreements in place between the UK and the US, theCrown Dependencies (Isle of Man, Guernsey and Jersey), as wellas the Overseas Territories (Gibraltar).
This means that Banks and other Financial Organisations mustcollect information about the tax residency (and citizenship) oftheir account holders. In some cases they will need to reportthis to HM Revenue & Customs (‘HMRC’), who will in turnforward it to the appropriate tax authorities.
2 What does this mean in practice?Every year, Banks such as Santander and other FinancialOrganisations will be required to report information to HMRCon financial accounts held directly or indirectly by US Personsand tax residents of the Crown Dependencies and Gibraltar.
The questions we ask all customers when they open an accounthave changed so we can identify and report the right people.
3 How do I know if I am affected?
US persons
FATCA will affect both personal and business customers whoare treated as a ‘US Person’ for US tax purposes. FATCA will alsoaffect certain types of businesses with US owners.
The term US person includes the following (but is not limitedto):
■ A citizen of the US, including an individual born in the US butresident in another country (who has not given up their UScitizenship)
■ A person residing in the US, including US green card holders
■ Certain persons who spend a significant number of days in theUS each year
■ US Corporations, US Partnerships, US estates and US trusts
For more information, please visit the IRS website or contactyour tax advisor.
Residents of Guernsey, Jersey, Isle of Man & Gibraltar
FATCA also requires UK Banks to identify customers who aretax resident in the Crown Dependencies or Gibraltar.
We will determine this based on information provided whenopening an account with Santander such as address, country ofresidence, place incorporation etc.
For more information, please visit the HMRC website or contactyour tax advisor.
UK persons
If you’re opening an account with our Isle of Man or Jerseybranch, we are required to identify customers who are taxresident in the UK.
For more information, please visit the IRS website or contactyour tax advisor.
4 When does FATCA start?The new law comes into effect from 1 July 2014; however Bankscan start to make changes ahead of this date.
5 Are all Banks impacted by FATCA?Yes. All Banks and Financial Organisations will be affected byFATCA, although their approach to implementing the new lawmay differ.
6 Is FATCA applicable to personal orbusiness customers?FATCA legislation will affect both personal and businesscustomers who hold an account with Santander.
Personal Customers
7 What does FATCA mean for me if I am aUS Person?If you are considered a US Person, we may ask you to supplyus with additional information or documentation.
We will need to report information about you and your accounton an annual basis to HMRC (or the Jersey/Isle of Man taxauthorities if your account was opened there).The local taxauthority will then share this information with the IRS.
We will be writing to affected customers in due course, howeverSantander cannot offer any advice relating to FATCA and werecommend you speak to your tax advisor if you need to discussyour tax position.
8 What does FATCA mean for me if I am a tax residentof Guernsey, Jersey, the Isle of Man or Gibraltar?If you are considered a tax resident of one of the above,we may ask you to supply us with additional information/documentation.
We will need to report information about you and youraccount on an annual basis to HMRC, who will then share thisinformation with the relevant tax authority.
Similarly, for accounts opened by our Isle of Man and Jerseybranches, we will be required to identify and report UK taxresident customers via the local tax authority.
We will be writing to affected customers in due course, howeverSantander cannot offer any advice relating to FATCA and werecommend you speak to your tax advisor if you need to discussyour tax position.
9 What does FATCA mean for me if I am not aUS Person or tax resident of Guernsey, Jersey, theIsle of Man or Gibraltar?For most customers, FATCA will have minimal impact andthere will be no action required. However we may still need tocontact you to confirm your status if we have reason to believeyou are a reportable person for FATCA purposes.
10 What if my circumstances change?FATCA reporting is an ongoing requirement. If your accountinformation changes, we may have to contact you to getadditional information so that we can update your accountclassification under FATCA.
11 What information will Santander have to report?This information will be of a personal nature (for example,Name, Address, US Taxpayer Identification Number), and ofa financial nature (e.g. Account number, Account balance/value). We will contact affected customers to explain theserequirements in full detail.
Business Customers
12 Am I only impacted if I am a business incorporated inthe US, Jersey, Guernsey, Isle of Man or Gibraltar?No. Banks and Financial Organisations must classify all businesscustomers in order to identify customers who are reportableunder FATCA. We will contact customers who need to takefurther action.
13 What do I need to do as a business customer?So we can establish your tax status under FATCA, we may needyou to provide additional information or documentation.
14 Why has my other Bank asked for differentdocumentation than Santander?The way Banks and Financial Organisations collect informationfrom their customers to confirm their tax status under FATCAmay vary.
15 How frequently will I have to provide information forFATCA purposes?
FATCA is an ongoing process. If your account informationchanges, we may have to contact you to get additionalinformation so that we can update your account classificationunder FATCA.
16 Under what circumstances would Santander reportinformation about my account?The purpose of FATCA is to prevent US Persons (and CrownDependency and Gibraltar Persons) from using Banks and otherFinancial Organisations to avoid paying the correct amount oftax on their global income and assets. We are required to reportinformation to the tax authority where the account was openedall accounts held directly or indirectly by such persons. Thisinformation will then be shared with the appropriate overseastax authority.
In addition, we may also need to report information aboutcustomers who do not provide the required documentation tous.
17 What information will Santander report?This information will be of a personal nature in relation tothe relevant substantial non-UK owners of the business (forexample, Name, Address, US Taxpayer Identification Number),and of a financial nature (e.g. Account number, Accountbalance/Value).
We will contact affected customers to explain theserequirements in full detail.
18 When do I have to provide the requested informationand/or documentation for FATCA?Customers should try to supply any requested documentationand information as soon as possible. We will always include adate for responses within the letters we send you and will alsosend a reminder.
19 What will happen if I do not provide the informationrequired under FATCA?Santander is committed to being fully compliant with FATCA.We may need to report information about customers who donot provide the required documentation to us.
20 Where do I go if I want more information?Please note that Santander is unable to offer tax advice.For tax related queries please contact your tax advisor or referto the IRS and HMRC websites for further information.
Santander Corporate & Commercial is a brand name of Santander UK plc (which also uses the brand name Santander Global Corporate Banking) and Santander Asset Finance plc. Registered Offices: 2 TritonSquare, Regent’s Place, London, NW1 3AN, United Kingdom. Registered Numbers 2294747 and 1533123 respectively. Registered in England and Wales. Santander UK plc is authorised by the Prudential RegulationAuthority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register number is 106054. You can check this on the Financial Services Register byvisiting the FCA’s website www.fca.org.uk/register Santander and the flame logo are registered trademarks.60
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