Deep thinkers

Insights

Insights

Insights

Electronic communications – safe, secure and consistent

Electronic communications – safe, secure and consistent

In an ever-increasing digital world, electronic communications between transaction parties have become the norm and the exchange of electronic documents is daily routine in transactions (whether occurring locally or cross-border). In this digital environment, therefore, it is imperative that the right tools are utilised to ensure that no legal mishaps occur: electronic signatures, electronic seals and electronic time stamps, as well electronic identification mechanisms are in place on the basis of a pan-European legal framework guaranteeing that the use of electronic communications is undertaken in a secure and consistent manner.

Harneys economic substance update

Harneys economic substance update

Since the introduction of the latest version of the BVI ITA guidance notes (now known as the “Rules”) on 9 October 2019, many BVI entities have now undertaken a formal classification using our online Economic Substance Solution. We have dedicated the last couple of weeks to updating our ES classification solution to make it more user-friendly. The solution now refers back to the new ITA Rules and we have added Harneys guidance throughout to help clarify any confusion around whether an entity is in or out of scope. We have added a Frequently Asked Questions section to each page and a new design feature that allows users to expand and collapse text as needed. The solution now also offers clients the opportunity to download template examples of simple directors’ resolutions.

Cayman Islands: Update to Reportable Jurisdictions list announced
Fund Services

Cayman Islands: Update to Reportable Jurisdictions list announced

The Cayman Tax Information Authority (TIA) issued an advisory confirming an update to the Reportable Jurisdictions list, dated 17 May 2019 and gazetted on 14 June 2019, which can be found here. This list, which contains two new Reportable Jurisdictions, applies to filings made for the calendar year 2018. We strongly recommend that clients review this list to ensure that all reportable accounts have been identified and filed accordingly.

Enhanced AML supervisory powers given to CIMA under money laundering legislation
Fund Services

Enhanced AML supervisory powers given to CIMA under money laundering legislation

Under recent changes to the Cayman Islands Anti-Money Laundering Regulations, the powers of the Cayman Islands Monetary Authority (CIMA), as the supervisory authority for anti-money laundering in the Cayman Islands, have been enhanced to allow CIMA to obtain information in relation to any relevant financial business from a broader category of persons than was previously the case.

Economic substance in the Cayman Islands
Fund Services

Economic substance in the Cayman Islands

The International Tax Co-operation (Economic Substance) Law (the ES Law) was introduced in the Cayman Islands on 1 January 2019 in response to OECD’s Base Erosion and Profit Shifting framework and related EU initiatives in relation to what are known as ‘Geographically Mobile Activities’. Under the ES Law any relevant entity which carries on a relevant activity and receives relevant income in a financial period must satisfy the economic substance test in relation to that activity (ES Test) and make an annual filing with the TIA. Aside from the basic filing requirements, a relevant entity which does not carry on any relevant activity is not required to satisfy the ES Test. Harneys has issued a guide to assist directors and operators of Cayman Islands companies and limited liability partnerships.