Annex Ii Of The Fatca Agreement

4.5 A retained foreign partnership or reluctance of foreign trusts is a non-U.S. partnership or trust that has entered into a withholding agreement with the IRS, under which it agrees to assume primary responsibility for withholding for all payments made to it for their partners, beneficiaries or owners. For more information, see IRS Revenue Procedures 2003-64, 2004-21, and 2005-77. Annex II has not been modified by mutual agreement between the competent authorities of Canada and the U.S. Communication on a Competent Authority Agreement amending Annex II to the Agreement is published. The government (with France, Germany, Italy and Spain) and with the support of the European Commission participated in joint discussions with the US government towards an intergovernmental approach to the Foreign Account Tax Compliance Act (FATCA), which supports the overall objective of combating tax evasion while reducing risks and burdens on financial institutions. A model intergovernmental agreement (IGA) was developed and published in July 2012. In September 2012, the United Kingdom and the United States signed an IGA – the “UK-US Agreement to Improve International Tax Compliance and to Implement FATCA” (see the “Current Documents” section below). Annex II of the IGA was amended by an exchange of notes between the two governments from 3 June to 7 June 2013 (see “Current Documents” section below). 5.11 In the absence of a written agreement between a merchant and a fund and the merchant has not given a classification as to the obligation to declare an account for a share of the fund held on client names and presumed to hold it, the fund must inform the merchant in writing that the account is not documented at the end of the year. (A copy of the declaration must be kept as a record established by the Fund for the purposes of compliance with Part XVIII, as required by subsection 267(1) of the ITA.) This allows the trader (usually the person with the most direct relationship to the underlying investor) to gather the necessary information from the account holder and provide the fund with the classification of reportable status in the United States before the notification is made to the CRA.

For accounts exempt from reporting in accordance with Annex II to the Agreement, reportable status in the United States is not required if the information is provided by the merchant to the Fund when the account is opened. Details of future agreements will be published on this page. This publication is available in www.gov.uk/government/publications/uk-us-automatic-exchange-of-information-agreement/uk-us-automatic-exchange-of-information-agreement 5.12 If there is a written agreement that addresses Matters Related to Part XVIII between a Merchant and a Fund, it is sufficient, with respect to notifications made by the Merchant to the Fund, that the Merchant provides the Fund with only U.S. account status. . . .

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