We are an independent global specialist in the administration of traditional funds and alternative assets with a particular specialism in private equity and real estate.
CRS & FATCA
We can support your fund through its entire lifecycle and the growth of your business. We provide a comprehensive range of private equity solutions delivered from key onshore and offshore jurisdictions to leading companies investing in a broad range of industries.
Our Fund Services Division has a proven track record in providing a broad range of fund services where the asset class is real estate.
JTC’s strong track record in operating at the leading edge of alternative asset classes continues with its innovative and market-leading capabilities in the emerging sphere of cryptocurrencies.
JTC Fund Services can offer a fully AIFMD-compliant ManCo service. The activities of the ManCo include providing a portfolio management, risk management and oversight function.
We have a deep understanding of listing funds on internationally recognised stock exchanges and the ongoing regulatory requirements of administering listed funds.
As a truly independent fund administrator you can be reassured that your fund administration requirements are entrusted to people that care about your investment structures.
We will project manage your application and guide you through the process and co-ordinate the various advisors to assist with the fund launch and strive to ensure everything happens within the expected timescales.
We offer a transparent, proactively managed range of cash management, foreign exchange and lending services, supported by a dedicated team of experienced professionals.
JTC Corporate Services provides a comprehensive range of corporate and fund services from key onshore and offshore jurisdictions to leading companies in their field of expertise.
We provide corporate finance services for corporate and institutional clients including debt capital solutions, treasury and escrow services.
We provide employee benefit structures, administration services to ensure employees get maximum value from the plans that organisations put in place.
Global experience in this dynamic asset class, spanning our corporate, funds and private client divisions.
JTC Private Wealth Services specialises in protecting and nurturing your private capital in real estate, financial and non-financial assets across countries and generations.
Superior service delivered by industry leading experts for private individuals, entrepreneurs and their families.
We provide a tailored range of private office solutions that work effectively for each family, from generation to generation.
We are able to partner with corporate and institutional wealth providers to complement their service offering by providing trust and company services.
In an age of truly international mobility, we also offer market-leading citizenship-and-residency-by-investment solutions via a strategic alliance with market-leading provider Henley & Partners.
JTC has extensive cross-jurisdictional experience and expertise in working with institutional and private clients in Africa, Americas, Asia, Australasia, Caribbean, Channel Islands, Europe, Middle East, Russia & CIS and the United Kingdom.
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12 Oct 2017
Date: 21 and 22 November 2017
3 Aug 2017
18 Oct 2017
We are JTC, an independent, award-winning provider of fund, corporate and private wealth services to institutional and private clients.
We value shared ownership, we put relationships first, we invest in our people, we embrace technology. We are JTC.
To build partnerships with our clients that enable them to focus on their core business.
We live and breathe our values and together they form our unique culture and JTC DNA.
JTC’s shared ownership philosophy extends to the communities where we live and work.
Established in 1987, we are proud of our history and excited about our future.
Join a dynamic team at JTC where everyone is dedicated to continuously delivering a service beyond our clients' expectations.
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We want everyone, wherever they work in the JTC network, to be able to develop the skills and knowledge that they need to be excellent in our world and we deliver this to our team through the JTC Academy.
JTC Gateway offers our people the opportunity to develop their careers by working in Group locations across the world.
JTC is committed to the policy of equal treatment of all its employees and requires all employees of whatever grade or authority, to abide by and aspire to this general principle.
We have a highly qualified and multilingual workforce. In 1998 we created the JTC Employee Benefit Trust, which turned our employees into stakeholders. This enables us to attract and retain the best people, whilst keeping them absolutely motivated and dedicated to our clients.
In 2014 this belief in share ownership was embedded further into the JTC culture with the equity for all scheme, allowing all permanent members of staff the opportunity to invest in the future of their company. That helps explain why they are so dedicated and care so much about their client’s work.
Our shared ownership culture benefits our clients.
JTC is an international organisation with global reach and true cross border capability. We are proud of our ability to provide the best solutions for clients irrespective of geography.
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Isle of Man
uk - London
USA - Miami
USA - New York
USA - South Dakota
In recent years there have been a number international initiatives based around the common goal of collecting more information about the tax affairs of individuals and companies. These initiatives are now creating a new level of responsibility for businesses such as JTC and whilst we recognise our obligations to comply with these regulations, our objective is to do so in manner that is also consistent with our aim of ensuring the highest standards of client data security and confidentiality.
The latest initiative of this type is the Common Reporting Standard (“CRS”). This publication is designed to provide you with information on the impact of the CRS regime, via a series of ‘Frequently Asked Questions’ It is not intended in any way to be a substitution for or to replace professional advice in respect of personal tax issues but rather it is a guide that will help explain the new rules as well your obligations and those of JTC.
CRS is an acronym for the Common Reporting Standard. It is a global initiative championed and developed by the Organisation for Economic Co-operation and Development (the “OECD”) and is broadly based on the piece of US legislation that brought in the Foreign Account Tax Compliance Act (“FATCA”). The fundamental objective of both CRS and FATCA is identifying persons who may be evading tax in their home country through the use of foreign or offshore accounts or entities. Approximately 100 countries have committed to exchange data with each other on an annual basis under the CRS regime.
CRS is being brought into effect in a phased manner. 56 countries implemented CRS as of 1st January 2016, with a view to exchanging information during the summer of 2017. A further 40 countries are expected to implement CRS with effect from 1st January 2017, and will be exchanging information with all other committed countries in the summer of 2018.
16 of the 18 jurisdictions in which JTC Group operate are already committed to the implementation of CRS. Any entity or trust that is resident in a Country participating under the CRS regime is legally obliged to undertake a classification under the CRS regime. Once this classification outcome is known, this will determine what additional actions, if any, might be necessary by that entity.
Every entity (including Trusts) needs to determine whether it is a Financial Institution (FI) or a NonFinancial Entity (NFE) and there are sub-categories of each status. There are rules that guide the assessment and categorisation of any given entity and it is these rules that JTC will follow to determine the status of all relevant client entities.
Not always. There are a number of key differences between the various existing FATCA regimes and CRS which might result in an entity in which you hold an interest being classified differently under the CRS regime.
Broadly speaking, an entity that is a Financial Institution will have some reporting obligations itself. It may also be obliged to register online with the Tax Authorities within certain jurisdictions relevant to its operations to identify itself and confirm that it will be making reports of data. An entity that is a NonFinancial Entity has no direct reporting requirements but where that entity holds accounts (e.g.: a bank account) with another Financial Institution they may have to make a report depending on the circumstances.
The list of current jurisdictions committed can be accessed via the website of the OECD by following this link: http://www.oecd.org/tax/transparency/AEOI-commitments.pdf
Where an entity that is classified as a Financial Institution has ‘account holders’ (which definition includes beneficial owners of companies and beneficiaries of trusts) resident in a participating jurisdiction, it will be obliged to transmit data in respect of that person to the tax authorities within its own jurisdiction who will then share that information on an annual basis with the jurisdiction of residence of those relevant account holders. This will include personal details about you in order for the tax authorities to identify you within your country, as well as financial information about the accounts that you hold with entities outside of your home country.
Even where it is known that there are no account holders resident in a jurisdiction which is party to CRS, an entity that is resident in a Country which is participating will have certain obligations depending on its classification. In some cases, this will include a legal obligation to undertake an enhanced file review. There is not an ‘Opt Out’ for this part of the process even if an entity anticipates that it will have nothing to report. During this process we may require additional information and your co-operation is vital even if you are content that you are not a Reportable Person.
In the situation of a bank, the account holders are simply the owners of the bank accounts held with that bank. In the case of entities that are administered the situation is a little more complex, for example:
The rules on Tax Residence are a complex subject, and it is quite possible for an individual to be resident in more than one jurisdiction for tax purposes. If you are in any doubt as to where you are tax resident, we would advise you to seek personal tax advice as a priority.
Much of the information that is required to be reported upon should already be held on our records. In certain circumstances, we may require your assistance with accessing information to value certain interests within underlying structures, or simply require you to confirm your tax residencies, Social Security numbers or Tax Identification numbers. Where this is the case, we will write to you directly under separate cover.
Depending on what information we already hold on you, we may already be in possession of sufficient data to exchange information under the normal reporting format. If there is currently insufficient information for the enhanced file review and you do not respond, or refuse to provide such information upon request, we may thereafter be required to report information on your interests as a ‘non-responder’ to the tax authorities.
As any changes to your personal details might have an impact on what information would be disclosed to the tax authorities, we ask that you notify us in a timely fashion should any of your personal details change. [What about any annual ‘CRS Admin’ fees?]
No. We are not required to make any deductions or withhold any taxes on payments received or payments made under the CRS regime.
JTC will use its best endeavours to provide you with a copy of what is to be reported in advance of its filing so that you are aware of what information we have given and can provide this to your tax advisor. The reporting is a legal obligation based on the records we hold and is not optional.
This is unlikely. If a jurisdiction has already implemented CRS with effect from 1st January 2016 there may already be some reporting obligation that has been triggered. Even if the entity is in a jurisdiction yet to implement CRS, consideration should be given to the fact that in the next few years approximately 100 countries across the world will be a party to the Common Reporting Standard or other similar agreements to exchange data. Entities in those jurisdictions that are not participating will be required to provide enhanced information on their ultimate owners when dealing with any CRS participating Financial Institution. As with any re-domiciliation, we would strongly urge that professional advice be taken to understand the impact of CRS to any entity in which you hold an interest, and to ensure that any restructuring considered does not fall foul of various Anti-Avoidance provisions that have been brought in to local legislation by various jurisdictions as part of their legal framework for CRS.
Whilst CRS will effectively phase out the reporting under ‘UK FATCA’ - the agreements for exchange of tax information that the United Kingdom has with its Crown Dependencies and Overseas Territories during 2017, it will not replace US FATCA. The United States has confirmed that they will continue to exchange data only under the existing US FATCA arrangements, and they have made no commitment thus far to replace or enter into any additional arrangements under the Common Reporting Standard. If you are resident in a jurisdiction other than the United States however, it is possible that you might be subject to reporting under both the US FATCA and the Common Reporting Standard regimes. We have produced a similar guide for the US FATCA and UK FATCA regimes that you may find useful, but we do recommend that you seek advice surrounding your unique personal circumstances and how the various automatic exchange of information regimes might affect you.
We are always on hand and willing to discuss how we can assist clients in respect of those entities we administer and your usual relationship team will be able to direct any queries internally. JTC Group do not provide tax advice so if your query relates to your personal tax and residency circumstances we recommend you seek third party tax or legal advice and we will be happy to make introductions to potential suppliers of these services if required.
This publication is intended to provide an overview of the subject matter (errors and omissions excepted) and is not comprehensive in nature or to be construed as legal, tax or investment advice. We recommend that clients seek professional advice on any particular matter.
Group Chief Enterprise Risk Officer
The entities within JTC Group, carrying on the regulated business of JTC Group, are duly regulated as appropriate by the British Virgin Islands Financial Services Commission; the Cayman Islands Monetary Authority; the Guernsey Financial Services Commission; the Jersey Financial Services Commission; the Commission de Surveillance du Secteur Financier and the Ordre des Experts-Comptables in Luxembourg; the Malta Financial Services Authority; the Financial Services Commission in Mauritius; the South African Financial Services Board as an authorised financial services provider; as a member of l’Association Romande des Intermédiaires Financiers in Switzerland and is authorised and regulated by the Financial Conduct Authority in the UK.
L’Association Romande des Intermédiaires Financiers (ARIF) is a self-regulated agency approved by the Swiss Financial Market Supervisory Authority (FINMA) for the supervision of financial intermediaries referred to in Article 2 para. 3 of the Swiss Federal Act concerning the fight against money laundering and terrorist financing in the financial sector (LBA). ARIF is also recognised by FINMA as a professional organisation for the enactment of rules of conduct relating to the exercise of the profession of independent asset managers within the meaning of the Collective Investment Schemes Act (CISA).
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